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A manager of ours, who is exempt, is taking a half-day to attend a social event even though they’ve exhausted all of their paid time off. Can we reduce their salary for that day?

HR Topics Question

Not for half day, no. As a general rule, if an exempt employee performs any work during the workweek, they must be paid their full salary. If the employee were taking off one or more full days for this social event, then a deduction from their salary would be permissible. A half day, however, does not qualify for a deduction. That said, if the employee has paid time off (PTO) available, you could deduct from that bank of hours for a partial or full day absence—this is not considered a salary deduction since they will still get their regular pay as a result of using PTO. Here are the situations in which deductions from salary are generally permissible for exempt employees: For any wo

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