Exempt vacation/sick hours

rhondam

I would like to claify some questions from our excempt employees.
Can you deduct one hour increments from accrued vacation and sick time hours from salaried employees without affecting FLSA?

Brad Forrister

If the employee is truly exempt - not just salaried, but entitled to exempt status under the FLSA - you can't deduct partial days from the employee's pay. But that's different from deducting it from the employee's accrued sick time hours - the courts generally say that's okay in less-than-whole-day increments. But once the paid time off is exhausted, make sure your policy doesn't allow for docking the employee's pay for less than whole days of absences.

FMLA leave is treated a little differently. An employer's grant of unpaid partial-day FMLA leave will not destroy exempt status.

ngordon

What about deductions from accrued annual leave for less than a full day?

Cathie

That's permissible unless state law says otherwise.