Sick Time vs Pay Deductions

I'm confused....you can't deduct from an exempt employees pay if they are out sick for half a day. But can you deduct their sick time?

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  • Yes you can (unless you have a state reg that states otherwise - I know CA has a few odd exempt pay rules).  DoL doesn't care what pot of money the employee is paid out of, just that they're paid.
  • There is a difference between deducting from an exempt employee's paycheck and deducting from an employee's allotted sick time. The employer may not deduct from an employee's pay for less than a day's absence when the employee is sick. But, if an employer, for example, provides an employee with 2 weeks of paid sick time by company policy and the employee has used up all of his or her sick time, an employer may deduct from the employee's paycheck in full-day increments if the employee is out for a day or more. If the employee works for any part of a day, though, and is out sick the remainder of the day, the employer may not deduct from the employee's paycheck.

        On the other hand, employers may deduct from an employee's allotted sick time under the company's leave plan in increments of less than a day as long as the employee has not used up his or her paid sick time.

  • What about when the employee leaves?  Does his final paycheck have to include sick pay that is unused?  And if so, where can I find that information?  Thanks!
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