HR Management & Compliance

DSLE Manual Finally Updated On Partial-Day Deductions

The California Division
of Labor Standards and Enforcement (DLSE), which is the labor commissioner’s enforcement
arm, has updated its Enforcement Policies and Interpretations Manual to
reflect a July 2005 court decision
1 authorizing employers to make deductions from an
exempt employee’s accrued vacation or paid time off for partial-day absences of
at least four hours. The time lag between the ruling and the DLSE’s recent
manual update caused some confusion, as employers struggled to determine
whether the agency planned to take an aggressive enforcement position limiting
such partial-day deductions. Historically, the DLSE had taken the position that
salary deductions for exempt employees’ partial-day absences were inconsistent
with the salary basis requirements for overtime exemptions.


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1 Conley v. Pacific Gas
& Electric Co., Calif.
Court of Appeals No. A105832, 2005