vacation days for exempt employees

We have a policy that requires exempt employees to record some type of benefit time used for whole day absences regardless of how many hours may have been worked during the balance of the week. I have a manager who objects to this policy and claims that is unfair if she puts in 40 hours in 4 days that she has to use a vacation day to take a day off during that week. We are a service industry and the only commodity that we sell is time. She says what we are doing is illegal. I'm pretty confindent that it is not, but wanted to get additional input.
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