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Court OKs PTO for exempt employees’ partial-day absences

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in Compensation and Benefits,Human Resources

by Christopher W. Olmsted, Esq., Ogletree Deakins, San Diego

Employers often confuse the strict rules limiting the docking of exempt employees’ salary with different rules relating to partial-day deductions under vacation or paid time off (PTO) policies.

A California appellate court has now reaffirmed and clarified the vacation rule in Rhea v. General Atomics (No. D064517, Court of Appeals of California, 2014).

Half day not a vacay?

Lori is an exempt employee of Gen­­eral Atomics. The company offers exempt employees accrued PTO, which they are required to use when they are absent from work for partial or full days. Deductions from accrued PTO are made for partial-day absences of any length.

Whether absent for a full or partial day, employees continue to receive their full salary and continue to accrue PTO during the absence. Even if absent for a full or partial day during a particular week, an employee is not required to use...(register to read more)

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