Can You Dock an Exempt Employees Pay?
How many hours are required to be paid for a full day?
Exempt employees are paid to do the job, not by the hour. Therefore, you cannot deduct money from their paycheck if the employee is late, takes a long lunch, go to a doctor’s appointment or what have you. If they work at all, they get paid.
If the employee comes in and works only 30 minutes of their day and then goes home, they still get paid full salary for that day.
When can we deduct?
If your employee has used up all of her vacation time and wants to take a day off, it’s possible for her to take the day off. You will not need to pay her for that day if the time off is for a non-illness related day off. It’s the equivalent of a vacation day, not a sick day.
Naturally, whether or not you allow this unpaid day off is up to you. If you grant the unpaid day (or days) off, remind your employee that they are not to do any work on those days off. Doing as much as 15 minutes work can trigger the rule.
Can we require them to make up their time?
You can require the exempt employee to make up missed time, even for partial day absences. However, you cannot reduce the employee’s salary if he/she fails to make up the hours.
Can they bank hours to use for these situations?
No, since an exempt employee is paid full salary regardless of the number of hours worked in a week, they cannot bank hours.
If you are experiencing issues with an exempt employee related to the questions above, there are some steps you could take to try and rectify the issues, including disciplinary action.