Exempt & Salary Deductions

HR_Fun

I would like to get your feedback on this one...

 

A company has a policy they all Exempt employees must swipe-in once per day to confirm they are at work.  No hours are recorded, just the daily swip is noted.

Would it be permissible to deduct (in full day increments) from an Exempt employee if the policy states that Exempt employees must swipe-in once per day.  The full day deduction would impact their PTO bank.  Once the PTO bank is used, then they would have full day deductions from their salary.   They could be actually at work, but fail to swipe with no way for the employer to prove they were working.

Thanks is advance.  

regdunlop

this practice could jeopardize their exempt status because their pay would be affected if they had no time left in their PTO bank. deductions from pay can't be part of the disciplinary process because the infractions aren't serious enough. disciplinary deductions are reserved for serious misconduct (like harassment, workplace violence). if they fail to swipe in and say they worked you'll have to discipline them in a way that doesn't affect their salary.

clarification. 6/16:  i meant the practice of deducting from salary if they fail to swipe in (and they say that they did work) could jeopardize exempt status ...

TXHRGuy

[quote user="regdunlop"]this practice could jeopardize their exempt status because their pay would be affected if they had no time left in their PTO bank. deductions from pay can't be part of the disciplinary process because the infractions aren't serious enough. disciplinary deductions are reserved for serious misconduct (like harassment, workplace violence).[/quote]

I disagree about the exempt status challenge.  You can deduct for full days away from work for personal reasons other than health (except in compliance with bona fide sick leave plans).  The Company's position is merely that the person did not come to work for personal reasons.

[quote user="regdunlop"][...] if they fail to swipe in and say they worked you'll have to discipline them in a way that doesn't affect their salary.[/quote]

Moreover, if the person came to work and didn't swipe in, the Company is still responsible for paying them and that's where you can get into trouble.  Same thing with hourly people: even if they don't clock in, you have to pay them for time worked.

This is one of the many reasons why it's a good idea to have a policy that says that you can be disciplined for improper use of the time clock.

HR_Fun

Thanks to both of you.