If an exempt employee calls in sick for the first two hours of the day and then comes and work the rest of the day, do you take the time from there sick time or since they are exempt are they paid for the whole day with no sick time deducted?
Under federal law, the employee must be paid for the entire day. This would be true, even if the exempt employee worked just an hour or a portion of the hour. The relevant statute is the FLSA, the Fair Labor Standards Act.
However, whether or not to charge the employee for 2 hours of sick time, is another issue. Generally, the employer can set whatever policies he or she likes regarding sick time, so exempt employees could be required to use it. However, in a few jurisdictions, the federal courts have ruled that charging an employee for sick time under these circumstances is a violaiton of the FLSA. In only those jurisdictions, it would be illegal for the employer to charge the employee for sick time.
If you do not know which jurisdiction you are in, better to err on the side of caution.
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