4.2a ERMUSR 06-13-2023 - Laserfiche WebLink

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Deductions from an Exempt Employee's Salary The Employer does not permit any payroll deduction unless it is approved by the Finance Manager. Deductions from an exempt employee's salary will only be made in good faith and in compliance with applicable law. No manager or other employee of the Employer has the authority to order any deductions from an exempt employee's salary without the approval of the General Manager. Federal and state law limit the deductions that may be made from the salary of an exempt employee. The Employer intends to fully and strictly comply with these limitations. Please note that these limitations concern the amount of gross salary received on the paycheck; but these are different from any limitation on deductions from an employee's leave bank. Further explanation of how this works follows below. Important Definitions. A deduction from salary is a deduction that results in a lower gross pay amount on an employee's paycheck. A deduction from a leave bank does not result in a lower gross pay amount on an employee's paycheck, but, rather, reduces the balance in the employee's leave account; or, in other words, reduces the amount of an employee's accrued and unused vacation or sick leave. Permissible Deductions from Salary. Absent contrary state law requirements or a specific employment contract executed by a duly authorized representative of the Employer, the salary of an exempt employee may be reduced for any of the following reasons: • Full day absences for personal reasons. • Full day absences for sickness or disability (which absence may otherwise be paid through any sick time benefits available to the salaried employee, if any). • Full day disciplinary suspensions for infractions of the Employer's written policies and procedures. • Full day disciplinary suspensions for violations of workplace safety rules of major significance. • To offset amounts received as payment for jury and witness fees or military pay. • The first or last week of employment in the event the employee works less than a full week. 34 June 2023 61847929v4 112