Help - Exempt Pay Question!!!!!

Mel in CO

I have an exempt employee who originally submitted their resignation letter for 5/7/04. However due to other circumstances, the employee has moved up their resignation to today, 5/6/04.

Since this employee is an exempt employee, and we are paid on a bi-monthly basis, when we run payroll on 5/17/04, I am planning on paying the employee their normal salary (again since they are an exempt employee) and then also pay out their unused vacation per CO state law.

Here is my problem, the supervisor (also a VP of the organization) wants to deduct the employee for one day of pay because they moved up their resignation date to today and since they will not be working tomorrow; their original resignation date. Am I under the correct assumption that I cannot deduct the employee for one day of pay since they are an exempt employee and since they moved up their resignation date? If this employee would have originally submitted their resignation date as 5/6/04, I would have still paid them their full salary on our next payroll date so I don’t see the difference. Your comments / input is needed quickly. Thanks.

lnelson

You can deduct the day if they do not show up at all on 5-7-04 or credit it with his vacation time owed.
I would make sure that the ee gives you a written notice of the change in date from 5-7-04 to 5-6-04.

Mel in CO

I did have the employee send me an email with the date change. Can I still deduct them for the day or use their vacation since they moved up their resignation date?

lnelson

Yes

Don D

Yes. The FLSA rules about docking do not apply to the week/month during which the ee is terminated or resigns. Although your VP is being a bit anal about this, don't ya' think? Well, we can think that, not that you would tell him that. x:-)

njjel

And for that matter the same holds true if an exempt employee works a partial week their first week of employment - the company is not required to pay them for the full week. Just the days the actually worked.

Mel in CO

I completely agree that the VP is being a bit anal about this situation. Thank you everyone for your assistance on this issue.