
A common example is allowing exempt employees to use their vacation time for absences instead of deducting salary.
#PENC MEANING PROFESSIONAL EXEMPT FULL#
Keep in mind, an employer is forbidden from reducing an exempt employee’s weekly salary for jury or witness duty, temporary military duty (unless the absence is a full workweek), poor job performance, business closures, holiday closures, or sickness or disability when an employer doesn’t have a bona fide leave plan established.Īlso, an employer can choose to be more generous than the FLSA regulations regarding pay deductions if the policy is applied consistently throughout the organization. These include federal Family and Medical Leave Act absences (prorated based on the number of hours absent) and suspensions for major safety violations. There are only a few scenarios that allow partial-day deductions.

The key is to pay exempt employees their weekly salary without any reduction for quality or quantity of work.

An employer may, in fact, do so and remain in compliance with the federal Fair Labor Standards Act (FLSA). It’s a common misconception that employers can’t require exempt employees to work a specific schedule or at least 40 hours a week.
