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Can we require salaried staff to make up lost time?

by on
in Small Business Tax Deduction Strategies

Q. We’re a small company (fewer than 20 employees) and don’t keep time sheets. Our entire staff is salaried. We expect employees to make up personal time and sick time (neither of which affects their vacation time or holiday time). Are we wrong to expect that if a salaried employee takes two hours for a doctor’s appointment, he or she should make up that time later? — M.V., Florida

A. We suspect that you have some serious Fair Labor Standards Act (FLSA) violations. First, it is very unlikely that every employee on your payroll is truly exempt from the FLSA’s overtime rules. Second, while your “make-up-time-lost” policy may not violate the FLSA regulations on its face, it clearly suggests that you tie employees’ pay to hours worked (i.e., that your employees are not paid on a salary basis and so do not qualify for exempt status).

We suggest that you contact a good labor lawyer ASAP. 

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