Employers generally cannot change exempt employees’ compensation because of absences from work. However, employers can reduce pay without jeopardizing employees’ exempt status if absences of a full day or more due to:
- Personal reasons
- Illness or accidents if employees are covered under sick or disability pay policies
- Unpaid leave taken pursuant to FMLA act
- Violations of significant safety rules that seriously endanger workplace safety or other employees’ welfare
- Employers can suspend employees without pay for 1 or more days if suspensions are imposed under written policies applicable to all employees.
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