Docking Exempt Status Pay

pdriscoll · December 2003

A company manager docked 4 hours of pay from one of his exempt employees pay. This employee had reported to work for the day and after lunch, left because of illness. Since she had depleted all of her sick time, he docked her pay. I am correct in stating that this is against FLSA wage and hour laws since this employee could lose her exempt status by doing so.

HR Bilbo · December 2003

I believe that you can only dock pay from an exempt EE if they miss a full day, and can only dock in full day increments.

Pork · December 2003

it depends on whether you pay daily, weekly, bi-weekly or monthly. I know you do not pay daily, so that option is out. If you pay weekly you can dock a whole week's pay for a disciplinary circumstance, otherwise, "no docking" an exempt must receive the entire week's salary. Any hour worked in the week deserves the whole week's pay, unless one leaves in the less than a week, then you can pro-rate the days worked and pay less than a full week's salary. Same is true of the Bi-weekly and monthly payrolls. Don't allow the payroll person to execute the "pay docking"; if the payroll person has already done it, then re-fund the "illegal docking action"!

PORK

HGHAHR · December 2003

I agree with PORK. This definitely jeopardizes the exempt status and you don't want to go there.

atrimble · January 2004

So if we have a bi-weekly pay period and we wanted to dock an exempt salary for an attendance-based disciplinary issue, would we dock the whole two week pay, or just the pay for the week in which the attendance problem occurred?

-Abby, HR newbie

Shadowfax · January 2004

General rule: ee considered on a salary basis if he regularly receives eaach pay period on a weekly basis, or less frequent basis, a predetermined amount constitution all or part of his comp, which is not subject to reduction because of variations in the quality or quantity of the work performed. Ee must receive full salary for any week in which work is performed w/o regard to number of days or hours worked. Deductions may be made on a full day basis for absences ooccasioned by the employee.

marc · January 2004

Just to clarify some of the earlier posts, if you have a bona fide sick leave policy, and the Employee is out of sick time, you may dock an Exempt EEs pay when they are out a full day or more due to illness.

If they showed up for part of a day, I think you have to pay.

Docking Exempt Status Pay

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