Can an employer deduct vacation pay?

A. No, your employer cannot deduct “advanced” vacation (i.e., vacation that is taken before it is earned or accrued) from your final paycheck. Because of work schedules and the wishes of employees, many employers allow employees to take their vacation before it is actually earned.

Can a salaried non-exempt employee be docked pay?

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 an employer force a non-exempt employee to use PTO?

In general, yes, employers may require the use of vacation/paid time off (PTO) and restrict its use. When there are no legal requirements, such as state and local paid sick leave laws, restrictions on the amount of notice required and the increments in which PTO may be used, are common.

Can you dock salary employees pay?

The short answer is “yes.” The rule of thumb under the Fair Labor Standards Act (“FLSA”) is that the regulations do not permit an employer to dock pay from a salaried, exempt employee. Doing so, can cause an entire class of employees to suddenly go from exempt to non-exempt and thus, entitled to overtime.

Can you have different vacation policies for different employees?

Yes, you can offer different time off packages to different employees. When it comes to PTO, you’re legally allowed to offer different structures to different employees, as long as the basis for the different employee benefits isn’t grounded in any type of discrimination.

Do non-exempt employees have to work 40 hours a week?

FLSA overtime rule According to the FLSA, employers must pay non-exempt employees no less than time and one half their regular pay rate for each hour over 40 in a workweek.

What is an exempt salaried employee?

An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.

Can an employer dock your pay without notice?

Since most workers are emplyed “at will” and are typically without an employment contract, “an employer is free to reduce your pay or demote you whenever they want to and the employee is free to leave when they want to,” says Tammy McCutchen, former administrator of the U.S. Department of Labor’s wage and hour division …