Q. We have a policy that allows
I have heard in some circles that if an works at all on a given day, he or she should be paid for the full day and not be subject to vacation use. Do I have any cause for concern? — A.S., Texas
A. No, your policy should pass muster under the federal wage-and-hour labor laws. As long as the employees receive their full salaries each week, this policy should not jeopardize their exemptions.
To qualify as exempt, most executive, administrative and professional employees must be paid on a salary basis. In no event can any deductions from an exempt employee’s salary be made for full- or partial-day absences occasioned by lack of work. Employers can, however, make deductions for absences from an exempt employee’s leave bank (whether vacation, PTO, or other leave benefits) in hourly increments, as long as the employee’s salary is not reduced.
If exempt employees receive their full predetermined salaries, deductions from a leave bank, whether in full-day increments or not, do not affect their exempt status.