Pay Agreements

MNJane · May 2003

We have entered into Pay Agreements with several employees that I believe are in compliance with the FLSA. These Agreements provide a fixed salary based upon a 40 hour work week with overtime being paid when hours exceed 40. We have recently had a situation with one employee who is consistently working less than 40 hours per week due to illness (assume not qualified for FMLA). Information I have researched thus far does not seem to support management's request to deduct from her salary. Any ideas about how to handle this one? Would disciplinary action be appropriate?

Don D · May 2003

>We have entered into Pay Agreements with several employees that I
>believe are in compliance with the FLSA. These Agreements provide a
>fixed salary based upon a 40 hour work week with overtime being paid
>when hours exceed 40. We have recently had a situation with one
>employee who is consistently working less than 40 hours per week due
>to illness (assume not qualified for FMLA). Information I have
>researched thus far does not seem to support management's request to
>deduct from her salary. Any ideas about how to handle this one?
>Would disciplinary action be appropriate?

Disciplinary action for what? Being ill? I wouldn't suggest you go there. You didn't indicate whether this is an exempt employee but I assume it is and you're treating her as if she were non-exempt, so the exemption may fail. If she's exempt, ineligible for FMLA and missing lots of time, follow whatever your sick leave policy is and in the absence of either a policy or a bank of sick days she can take, apply your standard attendance policy. Proceed cautiously, but being ill does not require that you waive your attendance policy.

MNJane · May 2003

Thanks. To clarify - the employee is a non-exempt employee who is being paid pursuant to a Belo contract. Management is getting frustrated because she regularly is only able to work 30 or so hours a week. She has taken a prior leave of absence. They would like to make another offer of a leave of absence but alternatively, if she does not take the leave, they need to proceed with enforcing attendance expectations. She works in a small facility, is the only employee in her position, and it is difficult to cover for her.

Don D · May 2003

She's non-exempt, has taken one exended leave already, misses lots of time and is on the verge of applying for another, plus she is the sole employee at the remote facility. Sounds like she is setting herself and her employer up for a part time worker at the facility. Unless the policy mandates these extended leaves, I would not grant another. Cover the job description with her and the company's need for a presence there 40 hours per week for business reasons and tell her that although you understand that she may want another leave granted, the company simply cannot do that and if she cannot be in attendance, you will need to search for a replacement. No laws will require you to maintain this position as part time due to her stated health or her attendance or her applications for extended leaves.

Pay Agreements

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