Can exempt employees be forced to use PTO?

Exempt employees are required to use their PTO hours when they are absent from work for partial or full days. The trial court granted summary judgment in favor of General Atomics, finding the partial-day PTO deductions lawful. On appeal, the California Court of Appeal affirmed the decision.

Can an exempt employee request time off without pay?

According to the U.S. Department of Labor, an employer is not required to pay an exempt employee during a workweek in which no work was performed. This means that an employer can require an exempt employee to take off a full week and not lose the employee’s exempt status.

Can employers deduct partial-day absences for exempt employees vacation time?

The federal Fair Labor Standards Act (FLSA) allows employers to take partial-day deductions from an employee’s leave bank—including paid time off (PTO), sick leave or vacation leave—even if the deduction results in a negative leave balance, without affecting that employee’s exempt status.

How does PTO work for salaried employees?

It’s called Paid Time Off (PTO) because the employee is paid for the time that they’ve taken off. You can deduct 8 hours from their PTO balance, but the total pay remains the same. Only specific situations will allow you to dock a salaried employee’s pay for taking hours or even a partial work week off.

Do employers have to pay PTO upon termination?

There is no legal requirement in California that an employer provide its employees with either paid or unpaid vacation time. Vacation pay accrues (adds up) as it is earned, and cannot be forfeited, even upon termination of employment, regardless of the reason for the termination.

What is exempt time off?

Under this definition, exempt employees generally must receive their full salary for any week in which they perform work, without regard to the number of days or hours worked. Generally if the exempt employee has paid time off available you can require them to use vacation time for partial day absences.

How many hours should a salaried exempt employee work?

An exempt salaried employee is typically expected to work between 40 and 50 hours per week, although some employers expect as few or as many hours of work it takes to perform the job well.