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Technology’s new FLSA trap

May 19, 2008 by Sam Narisi
Posted in: In this week's e-newsletter, Latest News & Views, Security and law
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Legal problems arise when nonexempt employees stay connected to the workplace 24/7. But here’s a way exempts can get you in trouble, too.

We’ve written about the legal issues caused when nonexempt employees carry technical devices and work at home. But there’s also a wage and hour problem technology can cause with exempt employees.

The image of a high-powered exec checking his BlackBerry on the beach is a common stereotype. And it’s perfectly legal, as long he’s taking paid vacation time.

It’s another story when exempts take unpaid leave.

When someone’s on paid leave, you aren’t deducting from a salary. You’re deducting from a leave bank, which isn’t governed by the same strict laws.

But unpaid leave is different. Say that same exec takes a day of without pay. While he’s home, he spends a half hour checking and responding to his e-mail. It’s likely he’s owed a full day’s salary.

Why? The Fair Labor Standards Act (FLSA) lets you deduct from that salary in full day increments only. That means if an employee does any work during the day, they get paid for the whole day.

Preventing problems

The best way to prevent a problem is to educate employees, since most of them probably aren’t aware of the rules about salary deductions.

A simple reminder before someone takes unpaid time off would likely go a long way.

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