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Deductions jeopardizing FLSA exempt status
Benefits & Compensation
Deductions jeopardizing FLSA exempt status
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I have a question regarding deducting pay and its impact on an employee's FLSA exempt status. It is my understanding that there are only a few specific circumstances (e.g. gross safety violation) in w
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Forums » Topic Forums » Benefits & Compensation » Deductions jeopardizing FLSA exempt status
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Deductions jeopardizing FLSA exempt status
posted at 11/3/2010 4:25 PM EDT
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Posts: 5
First: 3/3/2008 Last: 12/6/2010 |
I have a question regarding deducting pay and its impact on an employee's FLSA exempt status. It is my understanding that there are only a few specific circumstances (e.g. gross safety violation) in which an employer may dock an employee's pay without jeopardizing the employee's FLSA exempt status. I am trying to determine what these few specific circumstances are.
Does anyone know if it is possible to dock an employee's pay for losing or destroying company property while maintaining an employee's FLSA exempt status? Some examples could include: requiring an employee to pay for a lost company-issued laptop, charging an employee $10 to replace lost office keys or gate entrance cards, docking an employee's pay for a minor accident in which the employee damages the company parking garage, etc. If this does jeopardize the FLSA exempt status, please provide the reference (DOL regulations, court case, etc.), if you know of it. |
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Deductions jeopardizing FLSA exempt status
posted at 11/4/2010 4:56 AM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
Deductions for salary are most often not a good idea. Note that several states have a requirement that the employee must agree/consent in writing to deductions from her or his pay.
You would be better served in the examples you give by following a disciplinary process. For the example of the missing computer, have the employee sign a statement upon receiving the computer that she or he is responsible for it, will be liable for the cost, and that the employee agrees to deductions from his or her paycheck in the event of its loss. |
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Deductions jeopardizing FLSA exempt status
posted at 12/6/2010 2:31 PM EST
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Posts: 5
First: 3/3/2008 Last: 12/6/2010 |
it took me a while...but I accidentally ran across my answer in a DOL opinion letter:
http://www.dol.gov/whd/opinion/FLSA/2006/2006_03_10_07_FLSA.pdf |
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