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Sep10

Suspension for Misappropriation of Funds

I’m a California employer and discovered that an employee is stealing cash. She has been suspended while we investigate how much has been taken. Do I still need to pay her for hours worked prior to suspension even though we have clear evidence of theft, or can we wait till investigation is completed?

Under both California and federal wage laws, employees must be paid for their time worked. Non-exempt employees must be paid for each and every hour worked. Exempt employees must be paid their predetermined salary for any workweek during which work is performed regardless of the quantity or quality of such work.

Since non-exempt employees need not be paid for time not worked, a non-exempt employee can be suspended without pay. However, exempt employees are treated differently.

Though federal law allows full day deductions for suspensions, California law only permits deductions from the pay of exempt employees for disciplinary suspensions in full week increments. Partial week deductions are not permissible.

This entry was posted on Sunday, September 10th, 2017 at 5:31 pm and is filed under
Compensation.
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