How Well Do You Measure Performance?
Regarding the way their organization conducts performance appraisals, a hefty 75.2% rate their organization as average or above. Details:
While the FLSA allows some very specific pay deductions for exempt employees, such as taxes and wage garnishments, it's typically quite strict about the fact that exempt employee pay shouldn't be reduced for exempt employee absences in most cases. It's important for employers to understand when certain payroll deductions may be perfectly legal, and when others may not be under federal law so they can keep their organization in compliance.
Let's take a look at some of the exceptions—some of the rare instances where exempt employee pay can be reduced for absences.
PTO helps to bridge the gap between being required to pay salaried employees their full salary in a given workweek (even if they don’t work a full workweek), while also balancing how much time off can be taken without it becoming a problem.
Employers often find themselves in a conundrum, however, over how to handle miscellaneous time off that was never even requested as PTO. For example, what happens when the work hours are 8 a.m. to 5 p.m., but an employee has a personal appointment that requires him or her to arrive late? Usually this is not much of a question—that employee takes PTO for the time off and comes in as soon as possible and still receives a full salary for the week. But what if that employee doesn’t have any more PTO left to use? What if it’s not an appointment, it’s just a significantly late arrival time?
Can an exempt employee be given a loan that is repaid via payroll deduction, or does this violate the idea that exempt employee pay cannot be reduced? What is the maximum amount that can be deducted from an employee’s pay if they have multiple different garnishment orders? These thorny questions were addressed by Sharolyn Whiting-Ralston in a recent BLR webinar. Check out those questions and more here: