Exempt EE/Negative PTO

Carla

I am hoping someone will be able to help me on this issue. We have a policy that employees who take time off must use their PTO hours. This is for exempt and non-exempt employees. For the exempt employees who do not have enough PTO will go in the negative. We have an exempt employee who is currently negative -51 hours of PTO, and is not FMLA eligible. Do we have to pay her for full days taken being an exempt employee? If she terms can we collect the $ from her borrowed PTO? etc. Any suggestion(s) would be deeply appreciated

Pain

We only dock PTO taken in full day increments for exempt employees. If an exempt employee works a half a day we do not dock the other half as PTO. If they are in a negative balance at the end of the year its deducted from there check. Our policy also states negative balances will be deducted at the end of the year or from their final paycheck. Check your policy and go by that.

jcacciola

According to "The Federal Wage and Hour Laws" by R. Brian Dixon, "...A salary can only be reduced for complete days of absence due to vacation, personal business, illness, or incomplete initial or final weeks of employment. A salary cannot be reduced for partial weeks of absence due to jury, witness, or military duty but sums received for such service during a given week can be used to make up part of the employee's salary for that week." It goes on to say, "An employer may, of course, used paid sick leave or vacation to make up part of an employee's customary weekly salary for a complete day of absence...An employee's salary cannot be subject to reduction for absences on an hour-by-hour basis once paid time off benefits are exhausted, unless the absence is protected by the (FMLA)."

From another source (Managing a Workforce 2002 put on by Lee Smith Publishers), one attorney's handouts gave the following information:

"Deducting for absences of a full day if the absence is for personal reasons is permissable." "Employers may deduct when an exempt employee has exhausted his absences under a bona fide sick leave plan and is absent for a full day because of an illness or disability." "Deducting when an exempt employee is absent for less than one day is impermissable."

I hope this helps.
J. Cacciola, SPHR

dhnyct

Since exempts do not clock in/out, who documents their use of PTO? This has become a "growing pain" issue for us.

Would like to review exempt policies regarding the accrual rate and usage of PTO, to include any variance for years of service.