This is an interesting and often confusing situation for the employer. This question is essentially asking if the employer can take a partial day deduction from the exempt employee’s salary.

To find the answer to the question, the employer needs to look at not only the final rule for defining and delimiting the exemptions for executive, administrative, professional, outside sales and computer employees, but also the comments to partial-day deductions referenced in the final rule. The comments address a number of reasons for employers requesting permission for partial-day deductions.

In its comments, the Department of Labor (DOL) said it believed that partial-day deductions generally are inconsistent with the salary basis and should be reserved for infractions of safety rules of major significance, for leave under the Family and Medical Leave Act, or in the first and last weeks of employment.

The DOL has provided further guidance on a frequently asked question (FAQ) page , stating that if leave has been exhausted, or is not yet available, an employer with a bona fide leave plan might put the employee in a negative leave balance. But no reduction in pay is permitted for a partial-day absence.

The requirement to pay the full day’s salary to the exempt employee for a partial-day absence is the same for employers without a leave plan, and applies to the private sector only; there are exclusions for the public sector.

In sum, employers are not permitted to take partial-day deductions from an exempt employee’s salary.

Please Note: This material is provided as general information and is not a substitute for legal or other professional advice. Contact the Knowledge Center for more information.

Express Request

SHRM’s Express Request (ER) service allows members to request and receive resources on over 100 timely HR topics via e-mail. Available Express Requests are listed on the web site, and responses are sent immediately.