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* This is a federal regulation that California follows, with the exception of (b)(4). In California, there is no allowance for deductions for suspensions of any kind as long as part of the workweek is worked.
§ 541.602 Salary basis.
(a) General rule. An employee will be considered to be paid on a "salary
basis" within the meaning of these regulations if the employee regularly
receives each pay period on a weekly, or less frequent basis, a predetermined
amount constituting all or part of the employee's compensation, which
amount is not subject to reduction because of variations in the quality
or quantity of the work performed. Subject to the exceptions provided
in paragraph (b) of this section, an exempt employee must receive the
full salary for any week in which the employee performs any work without
regard to the number of days or hours worked. Exempt employees need not
be paid for any workweek in which they perform no work. An employee is
not paid on a salary basis if deductions from the employee's predetermined
compensation are made for absences occasioned by the employer or by the
operating requirements of the business. If the employee is ready, willing
and able to work, deductions may not be made for time when work is not
available.
(b) Exceptions. The prohibition against deductions from pay in the salary
basis requirement is subject to the following exceptions:
(1) Deductions from pay may be made when an exempt employee is absent
from work for one or more full days for personal reasons, other than sickness
or disability. Thus, if an employee is absent for two full days to handle
personal affairs, the employee's salaried status will not be affected
if deductions are made from the salary for two full-day absences. However,
if an exempt employee is absent for one and a half days for personal reasons,
the employer can deduct only for the one full-day absence.
(2) Deductions from pay may be made for absences of one or more full days
occasioned by sickness or disability (including work-related accidents)
if the deduction is made in accordance with a bona fide plan, policy or
practice of providing compensation for loss of salary occasioned by such
sickness or disability. The employer is not required to pay any portion
of the employee's salary for full-day absences for which the employee
receives compensation under the plan, policy or practice. Deductions for
such full-day absences also may be made before the employee has qualified
under the plan, policy or practice, and after the employee has exhausted
the leave allowance thereunder. Thus, for example, if an employer maintains
a short-term disability insurance plan providing salary replacement for
12 weeks starting on the fourth day of absence, the employer may make
deductions from pay for the three days of absence before the employee
qualifies for benefits under the plan; for the twelve weeks in which the
employee receives salary replacement benefits under the plan; and for
absences after the employee has exhausted the 12 weeks of salary replacement
benefits. Similarly, an employer may make deductions from pay for absences
of one or more full days if salary replacement benefits are provided under
a State disability insurance law or under a State workers' compensation
law.
(3) While an employer cannot make deductions from pay for absences of
an exempt employee occasioned by jury duty, attendance as a witness or
temporary military leave, the employer can offset any amounts received
by an employee as jury fees, witness fees or military pay for a particular
week against the salary due for that particular week without loss of the
exemption.
(4) *Deductions from pay of exempt employees may be made for penalties
imposed in good faith for infractions of safety rules of major significance.
Safety rules of major significance include those relating to the prevention
of serious danger in the workplace or to other employees, such as rules
prohibiting smoking in explosive plants, oil refineries and coal mines.
(5) Deductions from pay of exempt employees may be made for unpaid disciplinary
suspensions of one or more full days imposed in good faith for infractions
of workplace conduct rules. Such suspensions must be imposed pursuant
to a written policy applicable to all employees. Thus, for example, an
employer may suspend an exempt employee without pay for three days for
violating a generally applicable written policy prohibiting sexual harassment.
Similarly, an employer may suspend an exempt employee without pay for
twelve days for violating a generally applicable written policy prohibiting
workplace violence.
(6) An employer is not required to pay the full salary in the initial
or terminal week of employment. Rather, an employer may pay a proportionate
part of an employee's full salary for the time actually worked in the
first and last week of employment. In such weeks, the payment of an hourly
or daily equivalent of the employee's full salary for the time actually
worked will meet the requirement. However, employees are not paid on a
salary basis within the meaning of these regulations if they are employed
occasionally for a few days, and the employer pays them a proportionate
part of the weekly salary when so employed.
(7) An employer is not required to pay the full salary for weeks in which
an exempt employee takes unpaid leave under the Family and Medical Leave
Act. Rather, when an exempt employee takes unpaid leave under the Family
and Medical Leave Act, an employer may pay a proportionate part of the
full salary for time actually worked. For example, if an employee who
normally works 40 hours per week uses four hours of unpaid leave under
the Family and Medical Leave Act, the employer could deduct 10 percent
of the employee's normal salary that week.
(c) When calculating the amount of a deduction from pay allowed under
paragraph (b) of this section, the employer may use the hourly or daily
equivalent of the employee's full weekly salary or any other amount proportional
to the time actually missed by the employee. A deduction from pay as a
penalty for violations of major safety rules under paragraph (b)(4) of
this section may be made in any amount.
* * * * *
