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  • Exempt Employees

    I recently started working for a company in Texas, and the person training me has little knowledge of labor laws. While working in payroll, I had an exempt employee that was out for 2 hrs one day, and was charged vacation time to off set this time. From previous experiences, it was my understanding that an exempt employee was to receive a full day pay if the individual worked more than 4 hrs for the day (or half the scheduled work day). If someone could please confirm this, and what labor law would justify it.

    Thank you

  • #2
    Originally posted by SWilson
    I recently started working for a company in Texas, and the person training me has little knowledge of labor laws. While working in payroll, I had an exempt employee that was out for 2 hrs one day, and was charged vacation time to off set this time. From previous experiences, it was my understanding that an exempt employee was to receive a full day pay if the individual worked more than 4 hrs for the day (or half the scheduled work day). If someone could please confirm this, and what labor law would justify it.

    Thank you

    This is a mixed bag. Did the employee take off for "sick" reasons, i.e. a doctor appt?

    Here is what the law says:

    One cannot dock an exempt employee's salary in hourly increments because, to do so, would be to treat the employee as hourly or nonexempt. That is where the possibility of losing the exemption occurs.

    However, while salary cannot be docked in less than full-day increments, an exempt employee's sick leave accrual can be docked in increments of less than a day.

    So, if they were using a few hours of that employee's sick pay for sick time off, then it is OK, otherwise, NOT.

    Let me know if you have further questions.
    Thanks.
    Sue
    Sue
    FORUM MODERATOR

    www.laborlawtalk.com

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    • #3
      Sue, can you tell me where I can look to confirm this? I need to take written document to my supervisor to prove how time off by exempt employees should be handle.

      Thank you.

      Comment


      • #4
        Vacation

        I'd like to clarify the previous posting. It is okay to take time from an exempt employee's daily hours, so long as it is replaced with vacation hours, sick hours, etc. (called leave bank deductions by the Department of Labor). This is assuming you are a private, rather than a public, employer. (Public employers have more flexibility in docking hours from an exempt person's pay, per 29 C.F.R. subsection 541.5(d).

        The only time that docking can occur is when the reason for the time off is due to FMLA or from infractions of significant safety rules relating to prevention of serious danger to the workplace or to other employees. The US Supreme Court says that this standard "requires a clear and particularized policy - one that 'effectively communicates' that deductions will be made in specified circumstances." (Auer v. Robbins, 519 U.S. 452 (1997))

        There isn't a specific law that can be quoted, re: making up the time with leave bank deductions other than FLSA states that an exempt employee must have a guaranteed salary. How that salary amount is calculated is not relative to this situation, though this is a little murky due to differing case law opinions. In a district court case, International Association of Firefighters, Alexandria Local 2141 v. City of Alexandria (1987), the DOL issued a letter ruling that docking leave or accrued compensatory time for absences of less than an entire day does not defeat salaried status. In 1993, the DOL issued a Wage and Hour opinion letter stating: "It is permissable to substitute or reduce the accrued benefits for the time an employee is absent from work even if it is less than a full day, without affecting the salary basis of payment, if by substituting or reducing such benefits, the employee receives in payment an amount equal to his or her guaranteed salary."

        By the way, in a Wage and Hour Opinion letter dated July 1, 1993, the DOL gave an opinion that requiring that exempt employees work specific hours and fill out time sheets will not jeopardize the exemption status.

        Let me know if you have any other questions.
        Lillian Connell

        Forum Moderator
        www.laborlawtalk.com

        Comment


        • #5
          Originally posted by SWilson
          Sue, can you tell me where I can look to confirm this? I need to take written document to my supervisor to prove how time off by exempt employees should be handle.

          Thank you.
          If you go to this site, you can see where the information is stated. See the line in RED INK:
          http://www.ewin.com/articles/dock.htm

          Let me know if you have further questions.
          Thanks,
          Sue
          Last edited by Sue; 08-31-2004, 09:11 AM.
          Sue
          FORUM MODERATOR

          www.laborlawtalk.com

          Comment


          • #6
            Verification

            If you want to verify the information with the DOL Wage and Hour staff, you can reach them by calling 1-866-487-9243. They will certainly be able to assist you.
            Lillian Connell

            Forum Moderator
            www.laborlawtalk.com

            Comment


            • #7
              Thanks everyone for your help. I have all I need, I really appreciate it.

              Comment

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