Permissible Deductions from Compensation
Permissible Deductions from Compensation
The University is prohibited from making improper deductions from the salaries of exempt employees and must comply with the salary basis requirements of the Fair Labor Standards Act (FLSA). Employees classified as exempt from the overtime pay requirements of the FLSA will be notified of this classification at the time of hire or change in position. Deductions that are permitted by the FLSA include:
- Deductions that are required by law, e.g., income taxes;
- Deductions for employee benefits when authorized by the employee;
- Deductions resulting from absence from work for one or more full days for personal reasons other than sickness or disability;
- Deductions resulting from absence from work for one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy, or practice of providing compensation for salary lost due to illness;
- Deductions to offset amounts received as witness or jury fees or for military pay;
- Deductions resulting from disciplinary suspensions of one or more full days which are imposed in good faith for workplace conduct rule infractions; and
- Deductions resulting from any full workweek in which the employee does not perform any work.
During the week an exempt employee begins work for the University or during the last week of employment, such employee will only be paid for actual hours worked. In addition, an exempt employee may be paid only for hours worked during a period when the employee is using unpaid leave under the Family and Medical Leave Act (FMLA). If an employee classified as exempt believes that an improper deduction has been taken from the employee’s pay, the employee should immediately report the deduction to the Director of Human Resources. The report will be promptly investigated, and if it is found that an improper deduction has been made, the University will reimburse the employee for the improper deduction.