Can You Dock a Salaried Exempt Employee’s
Salary for a Day Not Worked?
:: Karen Randle
Director, Human Resource Services
G. R. Reid Consulting Services, LLC
www.grreidconsulting.com
Whether a deduction is permissible or impermissible for an exempt employee will depend on the facts in the particular case. The general rule is to stick to company policy and heed the list of permissible and nonpermissible deductions under the Fair Labor Standards Act (FLSA). The FLSA does not regulate vacation, severance, sick, and holiday pay or rest and meal times. Most of these are a matter of company policy and should be enforced in a nondiscriminatory manner. In addition, be aware that many state laws do regulate areas that the FLSA does not. In these cases, the state law would control.
Deductions may be made when the employee is absent from work for a full day or more for personal reasons other than sickness or disability. Thus, if an employee is absent for a day or longer to handle personal affairs, his or her salaried status will not be affected if deductions are made from the salary for such absences. If an employee is absent for less than a day, he or she must be paid for the full day.
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