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Exempt Employee One Day Furlough
Benefits & Compensation
Exempt Employee One Day Furlough
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Most sources state you can't do a one day reduction for an exempt employee under FLSA, yet there are examples of employers doing so.
Are there any circumstances where you can do a unpaid one day/m
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Forums » Topic Forums » Benefits & Compensation » Exempt Employee One Day Furlough
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Exempt Employee One Day Furlough
posted at 1/4/2011 3:20 AM EST
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Posts: 29
First: 5/6/2003 Last: 4/7/2011 |
Most sources state you can't do a one day reduction for an exempt employee under FLSA, yet there are examples of employers doing so.
Are there any circumstances where you can do a unpaid one day/month furlough with exempt staff due to economic reasons in the company? |
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Exempt Employee One Day Furlough
posted at 1/6/2011 4:10 AM EST
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Posts: 15
First: 9/18/2008 Last: 5/13/2011 |
This might help:
http://www.dol.gov/whd/regs/compliance/whdfs70.htm But here is what I would do. I would simply reduce the pay of each exempt employee and as long as the weekly salary is at least $455 still, you're fine. Then you can give them a day off whenever you want, they're still getting the same salary that week. As long as this is a long term situation this will work fine (see #7 in the site I listed above). |
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Exempt Employee One Day Furlough
posted at 1/6/2011 6:34 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
And I think the ones getting the MOST press are government employees and they don't always have to follow the same laws as everyone else! Others who are doing it might be doing it like the previous poster stated....that is lowering their salaries and then just asking them not to work as many hours. Plus I know quite a few companies who have lowered salaries with NO extra timeoff and the expectation of the same or MORE hours worked.
Another option is to force their use of vacation/paid timeoff. While the employer would still be paying for that day, it would lower future liabilities. And if an employee ran out of PTO and later requested a personal day off, that is one of the exceptions that the FLSA allows. However none of these options generally will be popular with employees. |
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