When an employer suspends an employee, it raises questions about the employee’s right to pay and the use of paid time off (PTO). The answer to these questions depends on several factors, including the employee’s exempt or nonexempt status, the reason for the suspension, and the employer’s policies.
Key Facts
- Nonexempt (hourly) workers may be suspended without pay, and employers don’t have to allow them to use vacation time to cover the absence, although it is an option.
- In California, non-exempt employees can be suspended without pay for disciplinary reasons or pending an investigation of alleged misconduct. Employers may or may not allow non-exempt employees who are suspended without pay to use their vacation days in lieu of going entirely unpaid for the length of the suspension, but employers are not legally required to make this option available.
- Exempt employees who are salaried may be suspended without pay only for an employer’s complete seven-day workweek. For exempt employees in California, no salary deductions are allowed for one-day or partial workweek suspensions.
- Unpaid suspensions for exempt employees must be made in good faith and for major workplace violations. It is inappropriate for an employer in California to discipline an exempt employee for something vague like “having a negative attitude.” A workplace suspension must be tied to a specific incident of workplace misconduct.
- Federal and state wage and hour laws, including the Fair Labor Standards Act (FLSA), will determine when employee suspensions must be paid. The FLSA generally requires nonexempt employees to be paid only for time actually worked, while exempt employees subject to the salary basis regulation must be paid their weekly salary, with few exceptions.
Nonexempt Employees
Nonexempt employees are typically paid by the hour and are subject to overtime pay requirements. In most cases, employers can suspend nonexempt employees without pay, even if the suspension is for disciplinary reasons. Employers are not required to allow nonexempt employees to use PTO to cover the time they are suspended. However, some employers may have policies that allow nonexempt employees to use PTO during a suspension.
Exempt Employees
Exempt employees are typically paid a salary and are not eligible for overtime pay. Employers can only suspend exempt employees without pay for a full workweek. For example, if an exempt employee is suspended for three days, the employer must pay the employee for the entire week. Exempt employees cannot use PTO to cover the time they are suspended.
Employer Policies
An employer’s policies may also impact an employee’s right to use PTO during a suspension. Some employers have policies that prohibit employees from using PTO during a suspension, while others may allow employees to use PTO with the supervisor’s approval.
Conclusion
Whether a suspended employee can use PTO depends on several factors, including the employee’s exempt or nonexempt status, the reason for the suspension, and the employer’s policies. Nonexempt employees may be suspended without pay and may not be allowed to use PTO to cover the time they are suspended. Exempt employees can only be suspended without pay for a full workweek and cannot use PTO to cover the time they are suspended. Employers’ policies may also impact an employee’s right to use PTO during a suspension.
Sources
- Must an Employer Allow an Employee to Use Vacation Time After Being Suspended for a Day?
- What Is My Right To Pay During A Suspension?
- Must We Pay an Employee Who Is Suspended?
FAQs
Can a suspended employee use PTO?
Whether a suspended employee can use PTO depends on several factors, including the employee’s exempt or nonexempt status, the reason for the suspension, and the employer’s policies.
Can nonexempt employees use PTO during a suspension?
In most cases, employers are not required to allow nonexempt employees to use PTO to cover the time they are suspended. However, some employers may have policies that allow for this.
Can exempt employees use PTO during a suspension?
No, exempt employees cannot use PTO to cover the time they are suspended.
What is the difference between exempt and nonexempt employees?
Nonexempt employees are typically paid by the hour and are eligible for overtime pay, while exempt employees are typically paid a salary and are not eligible for overtime pay.
What are some reasons why an employee might be suspended?
Employees may be suspended for a variety of reasons, including disciplinary reasons, such as violating company policies or procedures, or pending an investigation of alleged misconduct.
What should an employee do if they are suspended?
If an employee is suspended, they should first check their employer’s policies to see if there is any information about PTO usage during a suspension. They should also contact their supervisor or HR department to discuss their options.
Can an employee be fired while they are suspended?
Yes, an employee can be fired while they are suspended. However, the employer must follow the proper procedures for terminating employment, which may include providing the employee with a written notice of termination and an opportunity to appeal the decision.
What should an employee do if they believe they were suspended unfairly?
If an employee believes they were suspended unfairly, they should first try to resolve the issue with their supervisor or HR department. If they are unable to resolve the issue, they may want to contact an employment lawyer to discuss their options.