An employer may safely deduct PTO from a salaried employee without violating the FLSA or risking the employee's exempt status, according to a new ruling by the 3rd Circuit Court of Appeals.
Paying employees on a daily basis is incompatible with the overtime exemptions of the Fair Labor Standards Act (FLSA), even if it results in guaranteed weekly compensation well above the law's minimum, the Supreme Court ruled in Helix Energy Solutions Group, Inc. v. Hewitt.
The US Department of Labor (DOL) often misses its target dates, so another delay would not be unusual. Conversely, there is nothing stopping the agency from issuing new rules before May, either.
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