Guidance on Pay Deductions from Exempt Employees on Leave

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The US Department of Labor (DOL) has issued guidance regarding deductions from an exempt employee’s pay for absences taken in accordance with a state Leave Act. The guidance states that when an employer grants a partial day absence to an exempt employee under a state leave law (e.g. NJ Family Leave Act), it may not dock pay, as is permissible under the Federal Family Medical Leave Act, but instead may only deduct the partial day’s pay from the exempt employee’s leave bank.  View the DOL guidance here.