Suspending an exempt employee could cost employers
While most lawsuits are generated by non-exempt employees who are wrongly being denied federal and state mandated minimum wage and overtime, exempt employees can also cause problems from employers. In particular, employees who fall under a Fair Labor Standards Act (FLSA) exemption can problems for employers if they are suspended from work.
In theory, employers should be able to discipline an employee who violates policy by suspending them without pay, according to Reuters. However, exempt employees who are paid on a salary basis cannot be suspended without pay. By law, employers are not allowed to make improper deductions from employees' salaries.
To dock the salaries of these workers following an unpaid suspension, employers must prove in good faith there has been a serious workplace violation. The FLSA includes drug or alcohol abuse, prohibited sexual harassment and other federal or state rule violations. Even if one of these violations are committed, the employer must have an established written policy that includes the allowance of disciplinary suspension.
Small business employers might have even more difficulty with the intricacies of labor laws and might want to consider outsourcing human resources to establish written payroll policies and punishment.
In theory, employers should be able to discipline an employee who violates policy by suspending them without pay, according to Reuters. However, exempt employees who are paid on a salary basis cannot be suspended without pay. By law, employers are not allowed to make improper deductions from employees' salaries.
To dock the salaries of these workers following an unpaid suspension, employers must prove in good faith there has been a serious workplace violation. The FLSA includes drug or alcohol abuse, prohibited sexual harassment and other federal or state rule violations. Even if one of these violations are committed, the employer must have an established written policy that includes the allowance of disciplinary suspension.
Small business employers might have even more difficulty with the intricacies of labor laws and might want to consider outsourcing human resources to establish written payroll policies and punishment.
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