Exempt vacation on paycheck

windjam

I have attended a couple of seminars in the past (unfortunately too distant to still be able to find any printed info!!) where it was advised to NOT show vacation taken/paid on the paycheck as a line item. This would be where you show regular earnings less than vacation amount and then a line item for vacation amount so that the two add up to the total salary amount for the exempt employee. It was advised that we shouldn't do that because "some" courts had said that an exempt employee is guaranteed a set dollar amount and if you split it you are not paying that. It was stated that it was ok to track vacation and show available balance as a memo entry/comment but not to itemize in the earnings. Has anyone else heard this? Is there a legal citation for this? My owner is now questioning how our company has done this for the last 7+ years!

njjel

Don't know about the legalities but our company just shows our remaining vacation, personal and sick balances on the stub. You are probably safest to go that route because of the exact reason you outlined in your post.

Mentel

On our direct deposit slip, it shows the hours that were sick or vacation for that payperiod but no money is attached to it for exempt employees. This way, salary is always the same but the hours used are shown to the employee. The balance then is shown in a separate area on the back of the stub.