Exempt--Docking Pay for Sickness/Disability
Quizmaster
6 Posts
Happy Thanksgiving! This question is timely given today's resurrection of the excellent discussion of JudyRoy's question on this topic.
We are revising our sick leave policy to more closely follow 29 CFR 541.118(a)(3) allowing deductions from an exempt's pay for full day absences once sick leave has been exhausted. The regulation allows this "if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for loss of salary occasioned by BOTH sickness AND disability." (emphasis mine) It is the "both" and the "and" that bother me.
We would like to make it our policy that once an exempt exhausts his/her sick days, no more pay is available for full day absences (unless accrued vacation is used). However, our policy is simply a "sick leave" policy and mentions nothing about "disability". We do not provide short term disability benefits. Long term disability insurance is available to employees, but they must pay 100% of the cost.
May we implement the policy if we do not provide any type of "bona fide plan, policy or practice" related to payments for "disability," or are sickness and disability synonymous? Do we need to just add the word "disability" to our sick leave policy? Is our LTD arrangement sufficient to cover us? Or, am I getting worked up over nothing and creating an issue where one does not exist?
Hatchetman, you had excellent advice for JudyRoy and seem to have a knack for this area. Any thoughts? Advice from all graciously appreciated.
We are revising our sick leave policy to more closely follow 29 CFR 541.118(a)(3) allowing deductions from an exempt's pay for full day absences once sick leave has been exhausted. The regulation allows this "if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for loss of salary occasioned by BOTH sickness AND disability." (emphasis mine) It is the "both" and the "and" that bother me.
We would like to make it our policy that once an exempt exhausts his/her sick days, no more pay is available for full day absences (unless accrued vacation is used). However, our policy is simply a "sick leave" policy and mentions nothing about "disability". We do not provide short term disability benefits. Long term disability insurance is available to employees, but they must pay 100% of the cost.
May we implement the policy if we do not provide any type of "bona fide plan, policy or practice" related to payments for "disability," or are sickness and disability synonymous? Do we need to just add the word "disability" to our sick leave policy? Is our LTD arrangement sufficient to cover us? Or, am I getting worked up over nothing and creating an issue where one does not exist?
Hatchetman, you had excellent advice for JudyRoy and seem to have a knack for this area. Any thoughts? Advice from all graciously appreciated.
Comments
I think you can include in the term "disability" broken legs, other injuries, etc, that result in the emplyee not being able to work on a particular day.
I think the FLSA/DOL approach is to often interchange the words accident, injury, disability, illness in discussing this provision. And you probably should take that approach.
But since you are asking for legal interpretaiton, you definitiely should consult with your attorney, which I am not.
Attorneys: Would any of you like to weigh in on this one?