A California appellate court has reaffirmed and clarified the vacation rule in Rhea v. The short answer is yes a salaried employee may be docked pay for not being at work and not having a bank of PTO.
Salaried Exempt Employee Time Tracking Ontheclock
She still took the 6 hours of PTO.
Salaried employees and pto. Sick time personal days vacation. Under a written paid time off PTO policy an employer may deduct time from the bank for partial days missed eg in hourly increments but not if it results in a reduction of pay. On January 7 2005 the US Department of Labor DOL issued an Opinion Letter confirming that employers may deduct less than a full day from a salaried overtime- exempt white-collar employees PTO bank for absences due to personal reasons accident or illness without causing the loss of the exempt status of the employee.
One of the few exceptions to the requirement that an employer pay a salaried employee his or her entire salary for any workweek in which the employee performs work involves personal leave. Thus if a salaried employee uses up all of his or her PTO time and then misses work the employer may deduct only in full-day increments. The term salary basis is defined by the FLSA regulations as the payment on a weekly or less frequent basis of a predetermined amount that constitutes all or part of compensation without reductions for variations in the quality or quantity of the work performedUnder this definition exempt employees generally must receive their full salary for any week in which they perform work without regard to the number of days or hours worked.
Exempt Salaried with PTO If an exempt salaried employee has PTO as part of their benefits package generally you can require them to use it to cover their absences. Employees who work for a salary - 1500 a week rather than 15hour - are exempt from overtime laws but. When a company deals with salaried employees and PTO it opens up a different can of worms.
Managers need to consider how to process time off requests from both. D064517 July 21 2014. Employers may deduct the equivalent of one days pay for any day in which an employee does not perform any work for personal reasons not including sickness or disability.
You may discipline her for violating your leave policy but you may not reduce her salary. Employees may need to use paid time off PTO for any number of reasons. While labor laws for salaried employees are designed to afford the same sorts of protections and benefits to all American workers the implementation of these protections differs depending on whether someone is paid on an hourly or salary basis.
So can your employer make you take PTO time if you need to be out of the office for 2 hours. The purpose of Paid Time Off PTO is to provide employees with flexible paid time off from work that can be used for such needs as vacation personal or family illness doctor appointments school volunteerism and other activities of the employees choice. While fielding PTO requests is no ones favorite activity efficient PTO management will boost employee satisfaction and productivity.
Hourly workers are protected by federal minimum hourly wage standards with overtime pay equal to time and a half. Salaried employees are supposed to get lunch breaks and other break periods but in the go-go business world breaks are easily overlooked. Youre an exempt employee putting in way more than 40 hours a week.
At an employers discretion employees can use PTO before it is accrued and may be required to pay their employer back through future earnings or under certain circumstances from their final paycheck. It is up to the employer to decide how many hours an employees must work to get a full days credit how compflex time is earned whether employees are allowed to set their own schedule etc. Note with 1 and 2.
Employers often confuse the strict rules limiting the docking of exempt employees salary with different rules relating to partial-day deductions under vacation or paid time off PTO policies. A paid time off PTO policy combines vacation sick time and personal time into a single bank of days for employees to use when they take paid time off from work. This doesnt impact their exempt status because though it costs some PTO hours it wont change their total monetary compensation.
PTO policies typically provide for employees to accrue PTO on a monthly basis and permit employees to take PTO in intervals ranging from an hour to a week. Remember however that if a salaried employee has insufficient PTO to cover missed work you may not reduce her salary in any way other than full-day increments under the personal absence or bona fide sick leave exceptions described above. A PTO policy creates a pool of days that an employee may use at his or her discretion.
