1. Employers can reduce workers’ PTO balances without violating the Fair Labor Standards Act.
2. To qualify for exemption from FLSA, employees must generally be paid at least $684 per week on a salary basis.
3. An exempt employee must receive the full salary for any week in which the employee performs any work, regardless of the number of days or hours worked.
4. If an employer makes deductions from an employee’s predetermined salary because of the business’s operating requirements, that employee is not paid on a “salary basis.”
5. A recent court decision from the 3rd U.S. Circuit Court of Appeals approved of an employer’s practice of reducing workers’ paid leave when they failed to meet productivity standards, as long as the employer never paid an employee less than their weekly salary. – Paid leave is granted by employers as a matter of policy, not law.
– Employers often have guidelines for when and how paid leave can be used.
– Employees may push back if required to use paid leave at certain times.
– The FLSA allows employers to use paid leave to ensure employees receive a salary each week.
– Employers must communicate and explain any deductions from an employee’s leave balance.
https://www.rumberger.com/insights/how-to-avoid-flsa-violations-when-requiring-workers-to-use-pto/
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