What are the requirements to be exempt from pay docking?

To be exempt, the employee must meet certain requirements regarding job duties and — excluding outside sales employees and teachers — must be paid on a salary basis. Exempt employees must receive a salary of at least $455 per week.

What happens if an employer docks your pay?

That’s the rule. The employer can discipline, fire, or demote the employee. But it cannot dock the employee’s pay. Importantly, the employer is allowed to dock vacation time and force the employee to use that to cover the hours missed. But the employees pay may never be docked. So what happens if the employer breaks this rule and docks pay?

Can a employer dock an employee’s vacation time?

But it cannot dock the employee’s pay. Importantly, the employer is allowed to dock vacation time and force the employee to use that to cover the hours missed. But the employees pay may never be docked. So what happens if the employer breaks this rule and docks pay? Well then the employer has just lost the FLSA “exemption” as to that employee.

When does an employer have to pay an exempt employee?

An employer must pay an exempt employee the full predetermined salary amount “free and clear” for any week in which the employee performs any work without regard to the number of days or hours worked. However, there is no requirement that the predetermined salary be paid if the employee performs no work for an entire workweek.

Is it legal for my employer to dock my pay?

Their ability to legally do this depends in large part on whether you are an hourly or salaried employee. If you are paid hourly, then it is pretty easy for your employer to dock your paycheck, although some states require an employee to give written consent to the deduction first.

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 an exempt employee be paid an hourly rate?

An employee must be paid an annual salary, i.e., exempt employees cannot be paid an hourly wage. The employee’s weekly income can be no less than $455 per week. Keep in mind though, just because an employee is paid an annual salary that doesn’t automatically make him or her exempt.

When can you legally deduct exempt employee pay?

The Family Medical Leave Act specifically allows you to deduct exempt employee pay when they use FMLA . So, if your employee needs to take two afternoons off a week for dialysis, you don’t have to pay them for that time. However, here’s a caution on this deduction.

Is it illegal to dock pay from a salaried employee?

Answer: Docking Pay From Salaried, Exempt Employees Is Illegal…And Very Common The Fair Labor Standards Act (FLSA) is the law the controls the terms under which employees must be paid overtime. All employees fall into one of two categories “Exempt” or “Non-Exempt”.

When do exempt employees not need to be paid?

Exempt employees do not need to be paid for any workweek in which they perform no work. The exempt employee is absent from work for one or more full days for personal reasons other than sickness or disability. (Partial days would still need to be paid in full.) Unfortunately,…

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.

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