Sick Time Policy - Exempt vs. Non Exempt

Kristin W · December 2003

We are a MN company who is looking at adjusting our sick time policy. We currently do not have any defined limits to this.

I would like to change those limits to a maximum of 40 hours per year with no carryover. My question is however that we have 27 employees 26 of them are Salaried Exempt and 1 of them is Hourly Non Exempt. Would we be able to implement the same policy for all employees? Or would we need to state the policy different depending on the employee classification??? Thanks for your help! (Happy New Year Too!)

Kristin

Don D · December 2003

Kristin: There's not a federal law that requires an employer to even have a sick leave policy, and none that even speaks to your dilemma. I don't know about MN law regarding this. Although it can be cumbersome and burdensome for an HR Department to administer/implement multiple sick leave programs, it's not illegal to have different policies for different employee groups. I've seen it at one place of employment where there were three: One for union members, one for exempt and another for salaried non-exempt. Talk about a headache. As long as there's no illegal discrimination based on age, race, creed, color, national origin, disability or religion, I know of nothing that restricts you in this area.

Kristin W · December 2003

Thanks for the input Don! So we could even implement a sick leave policy that limits all employees to 40 hours of sick leave? I am wondering what happens then if a salaried exempt employee goes over that 40 hours?? From what I understand we would be unable to deduct their pay for days in excess???

Parabeagle · December 2003

Within limits, Kristin, you can use a sick leave policy for exempt employees. The law permits an employer to charge sick time for exempt employees against their available sick leave. Where you need to be careful, however, is if the exempt employee exhausts his sick leave. If the sick leave is exhausted, you generally cannot dock an exempt employee's pay for a day of illness. If the new FLSA regulations go through, that hitch in the program may change. Right now, however, they are on hold.

Hatchetman · December 2003

[font size="1" color="#FF0000"]LAST EDITED ON 12-31-03 AT 12:51PM (CST)[/font][br][br]I agree with Parabeagle and Don.

However, Parbeagle wasn't quite correct regarding not being able to dock salary for illness when paid sick leave is exhausted. I suspect he means for partial days' absences.

The regulations do provide that if the paid sick leave benefits are exhausted, the emplyer may still dock from salary the employee's FULL day absence due to illness or injury.

Many employer charge PARTIAL days' absences (the hours) due to illness or injury to the employee's paid sick leave hours balance. Under DOL interpretation that is permissible as long as the employee is paid his or her full salary for the day. However, if and when the employee has used up his or her paid sick leave hours, the employer must still pay the FULL salary for the PARTIAL days absence.

Sick Time Policy - Exempt vs. Non Exempt

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