What Are Permissible Salary Deductions?
Employers may make salary deductions (without jeopardizing the employee’s exempt status) for one or more full days an employee takes off for the following reasons: • to handle personal affairs • to go on unpaid family or medical leave under the Family and Medical Leave Act (FMLA) • for disability or illness, if the employer has a plan (such as disability insurance or sick leave) that compensates employees for this time off • to serve on a jury, as a witness, or on temporary military leave, but the employer may deduct only any amount that the employee receives as jury or witness fees or as military pay • during the employee’s first or last week of work, if the employee does not work a full week • as a penalty imposed in good faith for infractions of safety rules of major significance (rules that prevent serious danger in the workplace or to other employees) • to serve an unpaid disciplinary suspension imposed in good faith for infractions of workplace conduct rules, but only if the empl
