Docking Pay of Exempt Employees (II.C.5)

Volume II: Business and Finance
Chapter C:  Payroll
Responsible Executive: Vice President for Human Resources
Responsible Office: Human Resources
Date Issued: August 23, 2004
Date Last Revised: August 1, 2023

TABLE OF CONTENTS

Contacts
Statement of Policy
Reason for This Policy
Individuals and Entities Affected by This Policy
Exclusions
Responsibilities
Definitions (defined terms are capitalized throughout the document)
Related Documents, Forms and Tools
Website Address for This Policy
History and Updates
Appendix

CONTACTS

STATEMENT OF POLICY

To ensure compliance with the Fair Labor Standards Act (FLSA), units must adhere to the requirements of this policy when contemplating Docking Pay of an Exempt employee.

Pay may be Docked when an Exempt employee is absent from work for one day or more when the accrued leave provided by the University (see policy on Leaves of Absence (VI.E.2)) is not used by an employee because:

1. Accrued leave is exhausted,
2. The employee chooses to use leave without pay, or
3. The employee did not seek permission for leave or was denied leave. (May be accompanied by disciplinary action.)

Pay of Exempt employees may be Docked for:

1. Suspensions given for violations of safety rules of major significance, which include those relating to the prevention of serious danger in the workplace or to other employees; or
2. Suspensions given for violations of written Purdue policy or written workplace conduct rules applicable to all employees within the workplace.

During the initial and terminal pay periods of employment, Purdue will pay the proportionate amount of an employee’s full monthly salary based on the number of days the employee actually worked in these periods.

In all instances above, deductions are made in full-day increments. If the employee worked any portion of a day, pay may not be Docked for that day. The only exception to this requirement is when an Exempt employee takes unpaid leave under the Family and Medical Leave Act (FMLA), in which case pay may be deducted in less than full-day increments in accordance with the policy on Family and Medical Leave (VI.E.1).

REASON FOR THIS POLICY

The Fair Labor Standards Act, revised effective August 23, 2004, allows employers to Dock Pay of Exempt staff for certain prescribed reasons. As part of the provision, the employer must have a written policy in place describing the conditions under which pay may be Docked.

INDIVIDUALS AND ENTITIES AFFECTED BY THIS POLICY

Supervisors, employees involved in payroll processing, and exempt employees.

EXCLUSIONS

This policy does not apply to non-exempt employees.

RESPONSIBILITIES

Human Resources

• Communicate this policy to supervisors and Exempt employees.
• Promptly investigate reports of improper deductions and, in the event pay was Docked improperly, ensure that prompt reimbursement is provided to the employee.

Supervisors

• Inform Exempt employees of this policy when Docking Pay is contemplated.
• Consult with Human Resources prior to Docking Pay.
• Complete necessary steps to execute the Dock Pay and inform the affected employee.

Business Offices

• Assist supervisors in completing necessary steps to Dock Pay of an Exempt employee.

Payroll

• Utilize appropriate procedures to Dock Pay of an Exempt employee.

DEFINITIONS

All defined terms are capitalized throughout the document. Refer to the central Policy Glossary for additional defined terms.

Dock/Dock Pay
Reduce, pay less than, or withhold part of an employee’s pay.

Exempt
Employees who are not subject to the overtime and recordkeeping provisions of the Fair Labor Standards Act.

RELATED DOCUMENTS, FORMS AND TOOLS

Policies

• Family and Medical Leave (VI.E.1)
• Leaves of Absence (VI.E.2)

U.S. Department of Labor FLSA Overtime Security Advisor

WEBSITE ADDRESS FOR THIS POLICY

www.purdue.edu/policies/business-finance/iic5.html

HISTORY AND UPDATES

August 1, 2023: Revised to include requirement for pay to be Docked in full-day increments. Updated contacts and references to other policies. Title of policy changed from “Deductions from the Pay of Exempt Employees.”

November 18, 2011: Policy number changed to II.C.5 (formerly IV.5.7) and website address updated.

September 25, 2009: Updated to reflect terminology and process changes resulting from the implementation of OnePurdue.

August 23, 2004: This policy was originally issued in response to changes in the Fair Labor Standards Act.

APPENDIX

There are no appendices to this policy.