Absence management can be difficult if you are a large organization or if you have full and part time employees. Management of employee absences can become even more complicated if some of your employees have exempt status. Make sure you understand Federal Labor Standards to avoid falling into common pitfalls with your exempt employees.
Department of Labor Audits Companies
If any of your employees have exempt status you should be aware that the Department of Labor does perform audits. The organization wants to make sure that designated employees truly qualify for exempt status and that your company is following the rules. If you aren’t, then the Department of Labor may revoke the status and your organization may be required to pay the employee retroactively for any overtime or deducted wages.
Common Mistakes Most Companies Make
Many organizations don’t fully understand the exempt status and make some common mistakes, including:
- Only paying an employee for a half day if they left early
- Deducting pay if the employee takes time off
- Deducting pay if the employee has jury duty
- Deducting pay if the employee calls in sick
According to the Federal Labor Standards, you must pay an exempt employee for a full day as long as they are at work for at least five minutes of their shift. An exempt employee must also be paid for days that are missed due to illness or time off unless they miss an entire week.
There are of course exceptions to this rule, such as if the employee has vacation time or sick days he can use to replace the missing pay. There are also exemptions under the Family Medical Leave Act if your organization has 50 or more employees.
Understanding and managing employee absences gets complicated but there are ways to make tracking employee absenteeism easier. For more information on how you can get absence management under control, click here.