Announcement

Collapse
No announcement yet.

Can we legally dock pay? Massachusetts

Collapse
This topic is closed.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Can we legally dock pay? Massachusetts

    My company is multi state but based in Massachusetts. Even though 99.9 % of the company is exempt, we want to initiate a weekly timecard policy to get our PTO accruals and liability in hand. We were wondering if we would be legally able to charge an employee's PTO time if they do not comply with this policy. Would we be able to legally dock pay if no timecard is received?

    Thanks for your time.

  • #2
    Originally posted by Dubonnet View Post
    Even though 99.9 % of the company is exempt...
    Not your question, but it is extremely unlikely that this statement is legally correct. It is extremely unlikely that 90% of your employees are legally exempt.

    Forfeiture of vacation is specific to the law of each state. Legally it does not matter where the company is based, but rather where the work is done. If you are many states, then you are required to look up the specific law related to each state. I can say with certainty that your proposed policy is illegal in CA.

    Originally posted by Dubonnet View Post
    Would we be able to legally dock pay if no timecard is received?
    Not legally. This would be a violation of the "salaried basis" rules (29 CFR 541.602).
    Last edited by DAW; 08-02-2010, 11:11 AM.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

    Comment


    • #3
      But what are you really trying to accomplish? If it's making sure that exempt employees report their time off, hold the supervisors/managers responsible; that's part of a manager's job. Playing games with pay, or even vacation, is not, IMHO, the best way of doing it.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

      Comment


      • #4
        It is extremely unlikely that 90% of your employees are legally exempt.

        Since you do not know the nature of the business and services my company provides, the fact you can make a blanket statement about the legality of the FLSA status of our employees sort of throws me for a loop. I can asure you, we have been audited and have passed all exempt/non exempt tests.








        Originally posted by DAW View Post
        Not your question, but it is extremely unlikely that this statement is legally correct. It is extremely unlikely that 90% of your employees are legally exempt.

        Forfeiture of vacation is specific to the law of each state. Legally it does not matter where the company is based, but rather where the work is done. If you are many states, then you are required to look up the specific law related to each state. I can say with certainty that your proposed policy is illegal in CA.



        Not legally. This would be a violation of the "salaried basis" rules (29 CFR 541.602).

        Comment


        • #5
          Agree with Patty - you don't want to mess with pay/PTO & it seems you will run into some legal problems with what you want to do.
          Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

          Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

          Comment


          • #6
            It is extremely rare for a company to have that high a percentage of exempt employees and have them all meet one or more of the classifications. If you have been audited and been told that they all meet one or more exempt classifications, you are very much the exception rather than the rule - that is all but unheard of. I'll take your word for it but anyone who is knowledgeable about the FLSA would question that statement, even if you are correct.

            The only times you can legally dock the pay of an exempt employee are as follows:

            1.) It is the first or last week of employment and the employee did not work the entire week
            2.) The time is attributable to FMLA
            3.) The employer offers a reasonable number of paid sick days, and the employee calls in sick when they have either used all the days available to them or are not yet eligible for any
            4.) The employee voluntarily takes a day off for personal reasons
            5.) The employee is suspended for a major safety violation
            6.) The employee is suspended for the violation of a written policy which applies to all employees and which relates to workplace conduct (sexual harassment, violence in the workplace, drugs/alcohol in the workplace, etc.)

            In the case of #s 1-2 time can be docked in either full or partial day increments; in the case of #s 3-6, time can be docked in full day increments ONLY.

            You CAN legally apply vacation, sick or PTO time but like the others I question whether that is the best way to handle it; also, if the employee ran out of time you would have to pay them anyway. And given that in MA, vacation/PTO is considered wages, I suspect that you would have to reinstate the vacation or PTO time once you got the time cards, which would create a nightmare of administration.

            Better that you simply hold their managers responsible (unless they're the CEO , they report to SOMEONE). When their manager's raise or bonus is withheld because their direct reports have not been turning in their time cards, they'll get the cards in on time, I promise you.
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

            Comment

            Working...
            X