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When can an employer require an exempt employee to take unpaid leave?
Like most employers, you likely have a workforce comprised of both non-exempt and exempt employees. Under the Fair Labor Standards Act, non-exempt employees who work more than 40 hours in a workweek must be paid OT. Employers don’t need to pay OT to exempt employees.
Let’s assume that, each year, you provide your workforce with a bank of paid time off. Let’s further assume that you implement a policy that mandates that any additional leave be taken in unpaid full-day increments, event if the employee only needs a few hours off.
Is that policy legal? Or does it violate the FLSA? The answer follows after the jump.
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