Docking pay: FLSA compliance tips — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Docking pay: FLSA compliance tips

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in Office Management,Payroll Management

The Fair Labor Standards Act restricts the docking of employees' pay. Many times employers' decisions on docking will push an employee from an exempt classification to a nonexempt, or push an employee whose pay has been docked into court.

Employers must know the FLSA regulations that determine who they can dock and under what circumstances; how paid leave banks factor into docking decisions; and how to handle pay docking when issues like damage to company property and inclement weather are involved.

1. When can exempts' pay be docked without jeopardizing their exempt status?

You can dock an exempt employee's salary under the following circumstances:

  • Absences for a full day or more for personal reasons, not including illness or injury.
  • Absences for a full day or more due to illness or injury, in accordance with a bona fide plan, policy, or practice of providing compensation for loss of salary due to illn...(register to read more)

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{ 1 comment… read it below or add one }

kyle July 20, 2014 at 10:18 am

Can exempt employee’s last paycheck be docked for reimbursement for training or certifications without a signed authorization form?

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