exempt employees - sick time

We are a small manufacturing company of about 80 employees. We do not have accrued sick time or a PTO plan for employees. We do have a short term disability plan that kicks in on the fourth lost day of absence due to illness. We also, of course, provide vacation benefits for both hourly and salaried. When an "exempt" employee is sick for an entire day, or more, they are required to use vacation time to cover that day or they are told to work it out with their direct report to work a different day, make up the time, etc. This, of course, frustrates our exempt employees when they have to use vacation time for sick absences. Here's my question: What do other companies do for their exempt employees when they have absences of a day or more because of illness? Do you allow so many occurrences that "don't count"? Do you just pay and not worry about it? What do you do with exempt employees that abuse this? I would like to bring this information to my boss (the owner of the company) so that I can provide him with some possible solutions when I present him with the problem! I'm just looking for examples of what other companies do. Any information would be welcomed! For your info: We have never reduced an exempt employees pay because of this issue. I know that's a "no-no"!

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