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Deductions from exempt employees Pennsylvania

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  • Deductions from exempt employees Pennsylvania

    I found and read some laws on deducting from exempt employees and the exceptions that permit it, however I'm still not clear for my case. I'm hoping someone can give me the answer.

    I am an exempt employee for a company that always pays for holidays. However, they have a policy in their handbook that says to be eligible for holiday pay, you must work the day before and the day after the holiday. This applies to all employees, exempt and non-exempt. Well, I was away playing in the hurricane over labor day weekend and got sick, so I was not there the Tuesday after. (I was however working from home throughout some of the day) My question is, can an exempt employee's pay be docked in this situation?

    Below is the text I took from

    “With a few exceptions, salaried employees cannot have their salary reduced based on the "quality or quantity" of work performed.

    For example, if employees receive a salary of $600 per week when they work 40 hours, an employer cannot pay those employees $525 when they work 35 hours (effectively paying the employees $15/hour rather than a salary of $400 per week).

    If an employer makes improper deductions to an exempt employee's salary, it may destroy the "salary basis" of pay and may make the employee nonexempt and entitled to overtime. Employees whose salary is "subject to" reduction for reasons inconsistent with the salary basis of pay may no longer be considered under the law to be paid on a salary basis. Thus, if an employer actually does dock employee salaries, or if there is a specific employment policy requiring reductions in salaries in specified situations, the employer may destroy the salary basis of pay.”

    These are the “exceptions” referenced above.

    “an absence from work for one or more full days for personal reasons other than sickness or disability;

    absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness (for example, when an employee is required to use part of a sick time allotment);

    to offset amounts employees receive as jury or witness fees, or for military pay;

    for penalties imposed in good faith for infractions of safety rules of major significance; or

    for unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions.”
    Last edited by criese; 09-22-2006, 05:26 AM.

  • #2
    An exempt employee cannot be docked for a holiday unless they do no work whatsoever in the week that includes the holiday.

    There are a very few situations in which an exempt employee can be docked, but a holiday where the office is closed and the employee has no option but not to work, is not one of them.

    My post stickied to the top of the Labor Law forum outlines additional information.
    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
      Sorry, I didn't see your sticky in the other forum. Thanks for the help and for answering. I just wasn't sure if the employer had a policy in their handbook that says they can dock pay under this circumstance, if that made it legal. Apparently that does not make it legal, at least for exempt employees. Thanks again!


      • #4
        That sticky is there for a couple of weeks before and after every holiday because before I started doing that, every third post was about holiday pay.
        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.


        The forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on are opinions and suggestions of members and is not a representation of the opinions of does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.