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Exempt Employees Pennsylvania

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  • Exempt Employees Pennsylvania

    I recently found myself in a rather heated discussion with a friend concerning "salaried" employees ... please set the record straight as this effects how I handle myself at my job also.

    Small business (4 people - owner, office manager, 2 insurance agents). All are considered salaried employees - so no time clock installed.

    If someone comes in even 3 minutes late, that person is docked vacation time (30 min or an hour - not sure which), but yet if they work past their close of business, there is no additional compensation because they are "salaried." I think this is wrong.

    To be considered exempt from earning any additional compensation above the normal salary, doesn't the employee have to perform specific duties to have that classification?

    Also, can the employer dock vacation time for being late while not compensating for staying late?

    I look forward to the responses. Thank you.

  • #2
    You are correct that it is the job duties rather than the pay method that determines exempt status (and you have not provided enough detail to say whether exempt or non-exempt would be appropriate here).

    However, it is 100% legal in all 50 states (some limited exceptions in CA depending on how you interpret one particular case law) to apply vacation time to any missed time, regardless of exempt status, regardless of whether overtime is paid and regardless of whether the employee wants it done that way or not. The Feds have gone on record as saying they do not care even a little bit what happens to vacation balances, and only CA has even hinted that they care how vacation time is applied.
    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.


    • #3
      I would not want to be this employer without time records if one of those employees files an overtime claim and the state DOL determines that worker is, in fact, nonexempt.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.