{"id":4740,"date":"2016-04-04T11:47:41","date_gmt":"2016-04-04T16:47:41","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/pay-docking-for-salaried-employees.html"},"modified":"2026-08-17T16:09:10","modified_gmt":"2026-08-17T21:09:10","slug":"pay-docking-for-salaried-employees","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/pay-docking-for-salaried-employees.html","title":{"rendered":"When Can You Legally Dock a Salaried Employee’s Pay?"},"content":{"rendered":"\n
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When Can You Legally Dock a Salaried Employee's Pay?<\/h1>\n\n
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\n By Catherine Hodder, Esq.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Pay docking is when an employer makes deductions from an exempt, salaried employee<\/span>‘s regular salary. While sometimes necessary, these deductions are only legal under specific circumstances governed by the federal Fair Labor Standards Act<\/span> (FLSA<\/span>). Making an improper deduction<\/span> can convert an exempt employee to non-exempt status<\/span>, making your business liable for back overtime pay<\/span> and other penalties.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Managing a salaried workforce involves navigating state and federal laws<\/span> for paid time<\/span>. There are times when you may need to make deductions from an exempt employee’s salary<\/span> for absences<\/span> or disciplinary reasons.<\/p>\n

However, a misstep with an employee\u2019s wages<\/span> can lead to significant liability. This guide explains the rules under the Fair Labor Standards Act<\/span> (FLSA<\/span>) to help you maintain compliance and avoid costly penalties. For advice tailored to your business’s unique needs, consult a local employment attorney<\/a>.<\/p>\n

What Is Pay Docking?<\/h2>\n

“Pay docking” occurs when an employer makes deductions from an exempt, salaried <\/span>employee<\/span>‘s pay<\/span>. It\u2019s only legal under specific circumstances governed by the Fair Labor Standards Act<\/span> (FLSA<\/span>)<\/a>, such as full-day absences<\/span> for personal reasons<\/span> or disciplinary suspensions. Small business<\/span> owners should check their state employment laws<\/span> or state wage and hour division<\/span> departments before imposing disciplinary rules involving pay docking or suspension.<\/p>\n

What Is an Exempt Employee?<\/h2>\n

Under the\u00a0FLSA<\/span>,\u00a0workers fall into two categories that determine how they are paid: nonexempt and exempt<\/a>. These are defined as:<\/p>\n