Disciplinary Suspensions for Exempt employees

Christine M

What rules are there regarding suspension without pay for exempt employees? One publication I have cites that for major safety violations (only) exempt employees may be suspended in single day increments and that suspensions for any other reason must be in full work-week increments. It further suggests that the employer should consider reducing accrued leave time in lieu of unpaid suspensions.

1. Is the information correct
2. Can we legally reduce earned leave (i.e. vacation)?

Thank you for any help and suggestions you might have.

Susan Fentin MA

[font size="1" color="#FF0000"]LAST EDITED ON 01-17-02 AT 04:22PM (CST) by jrobb (admin)[/font][p]Christine, if you are solely concerned with discipline, your source is correct. Exempt employees may not be suspended without pay for less than a full week for disciplinary purposes unless the discipline is imposed for violation of a major safety rule. (with emphasis on the major) As far as reducing paid leave as a disciplinary consequence, you have to remember that, in Massachusetts, the attorney general considers vacation pay to be equivalent to wages. Under Federal law, such a reduction might not involve a violation of the employee's exempt status, but under Massachusetts law, it might. The safest bet is to contact your labor and employment counsel and ask them to get an advisory opinion from the attorney general's office (the state agency in charge of enforcing state wage and hour rules). There are other, limited circumstances under which you may dock an exempt employee's pay in less than full week, such as FMLA leave or unpaid personal days, but these do not apply in disciplinary circumstances, since they are by the choice of the employee.
Hope this helps. If you need further information, give me a call at (413) 737-4753 or email me at [email]sfentin@skoler-abbott.com[/email].
Susan Fentin, Associate Editor, [link:www.hrhero.com/maemp.shtml|Massachusetts Employment Law Letter]
[link:www.skoler-abbott.com|Skoler Abbott & Presser, P.C.]

Gar

[font size="1" color="#FF0000"]LAST EDITED ON 01-17-02 AT 04:50PM (CST)[/font][p]Susan,

Let's say I have an exempt emloyee whom, after an investigation, was found to have sexually harassed another employee. The conduct wasn't severe enough to warrant employment termination but we feel a suspension (w/o pay) is in order. Based on your comment, you seem to suggest that we can suspend the guy but it must be in weekly increments? Is that correct?

Christine M

Thank you for your information and advice.

In the event we choose to suspend the employee for disciplinary reasons, do we need to suspend for five work days (equivalent to one week), or must it be for 1 full workweek as defined in our policy, i.e., Sunday 12:00am - Saturday 11:59pm?

Hatchetman

[font size="1" color="#FF0000"]LAST EDITED ON 01-20-02 AT 03:09PM (CST)[/font][p]Since the concept of being able to suspend an exempt employee at all for non-safety related disciplinary actions, under FLSA, is based upon the concept that you don't have to pay an employee for any week in which he or she doesn't perform any work, then you only need to suspend the employee for the workdays (assuming the exempt employee doesn't work on the regular days off during the "work week") and don't need to include the "weekend."

The exact number of days of the suspension -- whether it be just the five actual work days of the work week (assuming the exempt employee doesn't work more than five days in a week) or the seven days of the "work week"(including the weekend) -- really depends on your policy requirements in terms of the appropriateness of the length of the suspension to the infraction and the way you've worded your disciplne policy.

Susan Fentin MA

Just to clarify: If you are going to suspend an exempt employee without pay, you can only do so in weekly increments. An exempt employee is entitled to full salary for any week in which he/she does any work except under the exemptions I detailed above. You can suspend them for any amount of time with pay, but if you want to suspend them without pay, it must be for a week at a time. Hope this helps, and as always, consult your labor and employment counsel for further details.
Susan Fentin