salary deduction for exempt employee

pattycake · August 2005

We have an executive exempt employee who was off work for 1 and 1/2 days due to illness. We have Earned Leave Time (ELT)days that can be utilized for absences, however, this employee has already used up all of her ELT. Can we deduct from her pay for these hours and still be in compliance with FLSA law?

Down_the_Middle · August 2005

If your ELT is a bona-fide plan to replace loss of earnings due to sickness, you can reduce her earnings for the one (1) full day of absence. Partial days absences are not involved in this type of earnings reduction.

steveg · January 2006

Yes you can reduce salary for the one full day missed however, any partial day worked by an exempt ee must be compensated.

jimbomt · January 2006

Since this was an illness, is the full-day deduction allowed because the time off is defined as ETL and not sick leave. I thought for illness, you could never reduce salary even having a a bona fide leave plan or not?

salary deduction for exempt employee

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