Mistakes to Avoid
The federal salary basis regulations provide that an employer may make certain deductions in a salaried exempt employee’s pay without negating that employee’s salaried status. Permitted deductions include personal absences, sickness or disability, disciplinary suspensions, etc. The federal salary basis regulations also identify certain circumstances where the white-collar exemptions may be lost if an employer makes deductions from an employee’s established pay. This white paper reviews these exemptions and discusses payment of additional compensation and how to correct and avoid payroll problems.
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