Salaried Who Go Into a Negative Leave Status
Rockie
2,136 Posts
Please correct me if I am wrong. If a salaried individual exhausts all their PTO and is out sick a day (non- FMLA) and they don't have leave to cover it - it is my understanding that they cannot be docked for this time since they are paid a salary, not an hourly rate? I am trying to explain this to a numbers cruncher who thinks this is not fair to hourly people and that exempts are getting paid for nothing!
Comments
[blockquote]"Deductions from exempt employees' pay: avoiding FLSA liability"
You may reduce a salaried employee's pay for absences of a day or more because of sickness or disability ONLY if you do it under a bona fide plan, policy, or practice of providing compensation for loss of salary because of sickness and disability. In other words, if you have a paid sick leave policy, you may deduct full-day absences for sickness before the employee qualifies for the plan or after he has exhausted his leave allowance under it.[/blockquote]
Another thread on the forum might shed some light (or confuse the issue more?):
[url]www.hrhero.com/employersforum/DCForumID17/43.html[/url]
From what I can gather, IF you have a bona fide leave policy in place, you can deduct leave time from their leave bank in partial days. Once they've run out of leave time under your policy, you can deduct pay ... but only for full-day absences. Again, this is only if you have a bona fide plan in place. Someone correct me if I'm wrong on this.
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