Salaried employees classified as exempt under the Fair Labor Standards Act (FLSA) are generally paid a consistent salary, regardless of hours worked within a week. However, whether they receive pay if they don’t work at all, or only work part of a day, depends on specific conditions. Let’s break down each scenario to clarify these complexities.
1. Full-Day Absences
- Personal Reasons: If an exempt employee takes a full day off for personal, non-medical reasons (not related to illness or disability), the employer can legally deduct a full day’s pay. This deduction applies only to entire days missed, not partial days.
- Sick Leave or Disability: Employers can deduct pay if an exempt employee is out for a full day due to illness or disability, but only if the employee has used up their paid sick leave or Paid Time Off (PTO). If the employee has PTO left, deductions should not occur, as they can use available leave.
- Family and Medical Leave Act (FMLA): When an employee is on unpaid FMLA leave, they do not have to be paid for the days they are absent under this leave. Deductions in this case align with FMLA regulations and are allowed without violating FLSA requirements.
2. Partial-Day Absences
- Generally, under the FLSA, exempt employees must receive their full salary if they work any part of the day. Employers cannot make deductions for partial-day absences unless a specific policy applies, such as FMLA. Under FMLA, employers can deduct pay for partial-day absences if the time is part of an approved FMLA leave.
3. Employer’s Decision to Not Provide Work
- Temporary Shutdown or Reduced Operations: If the employer temporarily closes or reduces operations and there is no work available, salaried exempt employees are still entitled to their full salary if they perform any work within that week, regardless of the amount.
- No Work for Entire Week: If a salaried exempt employee performs no work for an entire week, the employer is not required to pay them for that week. However, if even minimal work is done, the full salary must be paid for that week.
4. Unpaid Leave Policies
- Employer-Provided Unpaid Leave: If an employer has a policy for unpaid leave, such as a sabbatical or unpaid personal leave, and the employee voluntarily takes a full day off under this policy, the employer may deduct pay accordingly without violating FLSA rules.
Important Exceptions
- Disciplinary Suspensions: Employers may deduct pay for one or more full days for disciplinary suspensions related to workplace misconduct, as long as these suspensions comply with established policy.
- Military and Jury Duty: Employers may deduct pay for full days missed due to military or jury duty, provided that company policy allows for this and does not conflict with federal or state leave laws.
Conclusion
- Salaried exempt employees are generally paid for any week in which they perform work, regardless of how many hours or days they work.
- Deductions are permitted for full-day absences for personal reasons, sick leave after exhausting PTO, and approved unpaid leave, as long as these align with FLSA guidelines.
- Partial-day absences should not result in deductions unless the leave is covered under FMLA or another specific policy that allows it.
Elga Lejarza
Founder/CEO
HRTrainingClasses.com
HRDevelop.com
