Q. If a company tracks employees’ vacation, sick and personal time off, can we make deductions from accumulated time for everyone who takes time off, including salaried employees? I’m talking about deducting it from the accrual, not the pay. I’ve heard that I can’t deduct vacation, sick leave or personal time if the salaried employee worked at least four hours during that day.
A. As long as the exempt employee receives his or her full salary, it is not a violation of the Fair Labor Standards Act to dock vacation, holiday and sick leave for partial-day absences. Once the exempt employee exhausts the accumulated leave time, however, you may not dock salary for partial-day absences.
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