Can we make partial-day deductions from a PTO bank? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Can we make partial-day deductions from a PTO bank?

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in Office Management,Payroll Management

Question: If an exempt employee works for two hours one day, must we pay her for a full day, or can we require her to use her paid time off? What if she doesn’t come in at all for a day—must she still receive her full salary, or can we dock her pay for the day? We don’t allow employees to borrow PTO from the next year’s allotment.

Answer: You can require exempts to use their leave banks if they come in late or leave early. And it’s perfectly OK to not allow borrowing from leave banks; that eliminates a lot of paperwork and arguments between employees (who always seem to think they have more time) and HR. Finally, the FLSA has always allowed you to dock exempts’ pay when they’re out for a full day for personal reasons or vacation. But the key is that they must be absent for a full day.

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