Can salary employees get docked pay?

When an employer reduces an employee’s pay, it is called pay docking. Docking the pay of exempt employees is only permissible in certain circumstances. The Fair Labor Standards Act (FLSA) governs wage and hour laws of nonexempt employees.

Can I pay a non-exempt employee be salaried?

The answer to the question is an unqualified yes: A non-exempt employee may be paid a salary; however, the employer must still meet the overtime, minimum wage, record keeping and other obligations of FLSA. The question is triggered by a common misconception, namely that only exempt employees can be paid a salary.

Can you dock a salaried employees pay for a sick day?

Salaried employees don’t need to be paid for full workweeks in which they perform no work. Partial day absences may only be deducted from an employee’s sick or vacation “bank”. If the employee misses a full day’s work due to illness, the employer can dock pay after the sick leave allotment has been exhausted.

Can salary employees leave early?

As a general rule exempt employees are paid a salary and don’t have to be paid overtime no matter how many hours they work. Exempt employees who are late or who need to leave work early – for doctor’s appointment, child care, whatever – cannot have their pay docked for missing a couple of hours of work.

Can my employer dock my pay if I am a salaried employee?

As a rule, the FLSA permits employers to dock a salaried-exempt employee’s pay under certain circumstances. Absences need to be for at least one full day; partial-day deductions are generally forbidden. The absence must be personal leave.

When can my employer dock my pay?

Employers may dock or deduct pay when an employee is voluntarily absent from work for a day or more for personal reasons other than sickness or disability.

Is docking employee’s pay permissible?

Under the FLSA, docking pay for salaried non-exempt employees is permissible for any hours not actually worked. This means that nonexempt employees who take off an hour early, report back from lunch break late or call in sick may receive a smaller paycheck.

Can employer dock employees pay as punish?

Employers can never reduce pay for hourly workers below minimum wage. Although employers can’t dock pay as punishment for poor work quality, employees might be subject to performance reviews and ultimately be let go at the employer’s discretion if they are hired under an at-will employment contract. More From Your Money