Policy on Salary Deductions for Exempt Employees

I. Purpose

The College鈥檚 pay practices and procedures are governed by the federal Fair Labor Standards Act. The Fair Labor Standards Act prohibits deductions from the wages of salaried exempt employees, except in certain circumstances, which are summarized in Exhibit A to this policy and described in 29 C.F.R. 搂541.602 (b). It is the policy of 桃太郎映像to comply with this law.

II. Scope

This policy applies to salaried exempt employees of the College.

III. Definitions

A. Exempt employees: Employees in positions classified as exempt are on salary compensation plans and are paid monthly. They are not required by law to receive overtime pay for time worked over 40 hours in a work week and receive a predetermined amount of pay each month.

IV. Statement of policy

Any employee who believes that 桃太郎映像has made an inappropriate deduction or has failed to make proper payment regarding wages or benefits may file a written complaint with the Director of Human Resources or designee. Within fourteen (14) business days of receiving the complaint, the Director of Human Resources or designee will make a determination as to whether the pay deductions were appropriate and provide the employee with a written response that may include reimbursement for any pay deductions that were not in accordance with law.

V. Responsible office

Questions should be addressed to Human Resources.

VI. History

Adopted: October 2012

Updated: October 2019; December 2025

Exhibit A: Circumstances in which the employer may make deductions from the salary of exempt employees

The Fair Labor Standards Act, and implementing regulations, provides that deductions from the salary of exempt employees are permissible:

  1. When the employee is absent from work for one or more full days for personal reasons other than sickness or disability;
  2. When the employee is absent from work for one or more full days due to 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;
  3. To offset amounts employees receive as jury or witness fees, or for military pay;
  4. For penalties imposed in good faith for infractions of safety rules of major significance;
  5. For unpaid disciplinary suspensions of one or more full days imposed in good faith for violations of written workplace conduct rules;
  6. When the employee works only a portion of a week during their initial or terminal week of employment; or
  7. When the employee takes unpaid leave under the Family and Medical Leave Act.

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