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FSLA: Exempt Employees & Deductions in Pay

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  • FSLA: Exempt Employees & Deductions in Pay

    I am a HR Generalist working in a mid-sized non-profit healthcare organization in Arizona. Consider the following scenario for an "exempt" employee in this organization:

    A certain exempt employee's usual working hours are from 9am to 6pm (1 hour lunch in between) and this employee typically works well over 40 hours a week with occasional weekend/evening work as well. Would it be considered illegal under FSLA to require that employee to use PTO (Paid Time Off) for arriving late at 1pm and working until 6pm for a 5 hour partial work-day? Would this technically be considered an unreasonable deduction in pay for an exempt employee as PTO can be cashed-out? Thank you for your feedback!

  • #2
    No, it would not be illegal under the FLSA. The FLSA does not address the use of PTO, vacation time, sick time, holidays, or other leave time at all. As far as the FLSA is concerned, as long as the exempt employee receives all their pay in each check (unless docked for one of the very few legal reasons to dock an exempt employee) they don't care where the money comes from. They consider that to be a matter between the employer and the employee.

    If you are in either Washington or California, then depending on the reason the employee only worked a half day there MIGHT (but not necessarily WILL) be some state law issues to deal with. If you are in any other state, then it's legal under state law no matter what the reason.

    I see that you said you're in Arizona, but I'm leaving the above paragraph for the benefit of any readers from other states.
    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.

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    • #3
      Time Worked According to FLSA? Arizona

      We have a FLSA non-exempt employee who was threatened by an individual while working on-call for the company out in the community on a Crisis shift. This employee subsequently filed charges and attended court this week. Is the employee's time in court to pursue charges due to this work-related incident considered "time worked" according to FLSA and would we be required to compensate her for that time? Thank you :-)

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      • #4
        Originally posted by sfloto View Post
        We have a FLSA non-exempt employee who was threatened by an individual while working on-call for the company out in the community on a Crisis shift. This employee subsequently filed charges and attended court this week. Is the employee's time in court to pursue charges due to this work-related incident considered "time worked" according to FLSA and would we be required to compensate her for that time? Thank you :-)
        Duplicate post - please see: http://www.laborlawtalk.com/showthread.php?t=178234
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