Exempt vs. Non-Exempt

[kevinreece]

What is the name of your state? South Carolina

My girlfriend's brother works for a company with a PTO policy (80 hrs. given at the beginning of the year for total sick/personal/vacation time for the year.)

If an employee works under 40 hours for a given week, they are required to make it up, or at the end of the pay period that time will come off their unused PTO. Now, if they work over 40 hours at the end of the pay period, they lose the additional hours worked.

Is this legal? (They are computer software programmers on salary.)

Thanks in advance for any help!!

 

[Beth3]

Yes, it's legal. Except, I believe, in California, it is legal for an employer to attribute absence hours for exempt employees to the employee's PTO/vacation bank.

 

[kevinreece]

Thank you, Beth.
Now, if that bank is reduced to 0, due to vacation time/sick time/etc., can the employer then lower the employee's paycheck if they work less than 40 hours a week?

 

[Beth3]

"Now, if that bank is reduced to 0, due to vacation time/sick time/etc., can the employer then lower the employee's paycheck if they work less than 40 hours a week?" That depends.

Other than time attributable to FMLA, an employer may never pay an exempt employee in less than full day increments. If an exempt employee is absent in full day increments, the employer may dock a full day's pay under the following circumstances.

1. If the employee has exhaused an employer provided paid sick days benefit of a reasonable amount and is again absent due to illness.

2. If the employee is absent for purely personal reasons.

3. If the employee is suspended for a major safety violation.

4. For any days not worked the week in which an exempt employee begins and ends employment.

 

[Ramoth]

If they are exempt, they must be paid for the full day if they work any part of it (unless they miss time due to FMLA). Once they are out of PTO, they will not need to be paid for full days missed. Plus, they employer can "loan" them PTO to cover the partial days, thus reducing the amount of vacation available next year, and if the employee leaves while owing a PTO balance, the balance can be deducted from their final check.

 

[kevinreece]

Thank you both very much.
It does bring up one more question, though, and I believe I understand it, but I'd like you guys to validate my understanding.

Is this correct:
If an exempt employee works 2 hours, then goes home sick and is out the next day, for a total of 14 hours, the employee's check (assuming 0 time left in the PTO bank) could only be docked or reduced by 8 hours for that pay period, because the employer can only deduct for the full-day absence. If they are docked or their check reduced by the full 14 hours, the employee would have a DOL claim. Right?

 

[Beth3]

That is correct. Unless the absence time for the partial day was FMLA, then the employee must be paid in full for the day they worked the two hours. If the employee has exhausted their PTO/paid sick days bank, they could be deducted for the second day however.

 

[kevinreece]

Thank you Beth.

It seems that I need to advise them to exhaust their PTO banks, and work at least some on the days they plan to leave early.

I'm only kidding, of course, but that seems to be the only time they are treated fairly (although legally).

 

[cbg]

I agree with everything Beth and Ramoth have said; I just want to add that the state of Washington also prohibits an employer from taking PTO in partial day increments; also that in both states there appear to be some possible exceptions based on what the time is used for. However, in South Carolina, and in the other 48 states (excluding CA and WA) the information in this post is correct.