We have a new employee, hired through a temp agency and will owe the commission to the agency on 11/16/07. My problem is the employee, who is salaried, has been sick 3 days within the first month of employment (start date was 10/16) -- how to I calculate the deduction for the 3 days of sick time. Do you do it hourly (calculated by annual, divided by 52 weeks, divided by 40 hour weeks) or do you do it daily within the payroll time period (11/01 - 11/15)?

Salaried is only a pay method. Is the employee exempt or non-exempt?

But, if exempt, "weekly salary" is the basis of all computations. What is this employee's pay frequency?
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/29CFR541.602.htm

Salaried is only a pay method. Is the employee exempt or non-exempt?

The employee is exempt (no overtime pay)

But, if exempt, "weekly salary" is the basis of all computations. What is this employee's pay frequency?
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/29CFR541.602.htm

bi-monthly (15th and end of month)

That's semi-monthly, but OK. ;)

One way is to take the number of days worked to the number of available work days in the pay period, and multiply that by the semi-monthly salary. So if there were 11 work days in the pay period and the employee missed 3 of them, you would pay 8/11 of his semi-monthly salary.


Another reason I don't like semi-monthly and monthly pay frequencies.

Let's remember that an exempt employee can only be docked for time worked due to illness if the employer offers a "reasonable" number of paid sick days. I can completely understand that he most likely (:) ) has not accrued 3 sick days in the first month of employment, which satisfies that prong of the regulation - he is not yet eligible for the time. But have we established that the first prong of the reg has been met - does the employer offer at least five sick days annually?