Fenwick Employment Brief - January 12, 2010.

Extract


Fenwick Employment Brief - January 12, 2010.

CALIFORNIA LABOR COMMISSIONER ALLOWS EMPLOYERS TO DEDUCT FROM EXEMPT EMPLOYEE LEAVE BALANCE IN LESS THAN HALF-DAY INCREMENTS

To properly classify an employee as exempt, an employer must satisfy the salary-basis test by paying a salary, "without deduction," regardless of how many or how few hours the employee works during the pay period. Courts and agencies, however, have allowed employers to deduct from an employee's vacation or sick leave balance in fullday increments without violating the test. Then, in Conley v. PG&E (20...

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