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Mar03

Vacation Time Question

Can an employer do a partial day deduction from vacation time on a salaried employee and then not pay the employee when they run out of vacation time for partial or full days missed? (Texas Employer)If so what regulation is it covered under.

The U.S. Department of Labor states that a deduction from an exempt employees pay is permissible when an exempt employee is absent from work for one or more full days for personal reasons other than sickness or disability, or is absent 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.

In addition, the employer may take deductions from an exempt employee pay for partial day absences such as vacation. You can replace the time off with amounts in an accrued leave accounts. However, the employee must receive the full guaranteed salary, even if there is no leave in the account or there is a negative balance.

The state of Texas does not specifically address this issue.

This entry was posted on Sunday, March 3rd, 2013 at 4:29 pm and is filed under
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