Avoid penalties as a result of a U.S. Department of Labor Audit by understanding what deductions you can make from an exempt employee’s pay according to current exempt employee law.
Don't deduct from an exempt (or "salaried") employee's pay unless it is:
- For absences from work for one or more full days for personal reasons other than sickness or disability
- Sick Leave Plan - For absences from work for one or more full days due to sickness or disability if the employer has a bona fide sick leave policy, plan or practice,
- To offset any amount received as payment for jury fees, witness fees or military pay,
- For a disciplinary suspension of one or more full days imposed in good faith if the employee violated a workplace conduct rule (but not if the employee breached a performance or attendance standard)
- For penalties imposed in good faith for violating safety rules of "major significance,"
- To pay an employee for time actually worked during the first and last weeks of employment
- FMLA Leave - For unpaid leave taken pursuant to the Family and Medical Leave Act (FMLA)
Modern Business Associates deals with these kinds of issues on a frequent basis. As a Human Resource Outsource Organization, our clients rely on us to help them effectively deal with these kinds of labor topics including appropriate deductions, Sick Leave Policies, and compliance issues like FMLA.
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