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Can We Suspend an Exempt Employee Without Pay?

JDSupra (02/17/2012) Bill Pokorny

The Fair Labor Standards Act permits salary deductions for exempt workers for “unpaid disciplinary suspensions of one or more full days imposed in good faith for infractions of workplace conduct rules … imposed pursuant to a written policy applicable to all employees.” So, for example, a company can suspend without pay an exempt employee for violating a written sexual harassment policy that applies to all employees in the company, and this action likely would not violate the FLSA. However, employers should check their state’s laws as well, because some states’ laws do not follow the U.S. Department of Labor’s rules regarding exempt status.