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LEGISLATIVE/REGULATORY UPDATES DLSE Updates Enforcement Policies and Interpretations Manual to Authorize an Employer to Deduct from an Exempt Employee’s Bank of Accrued Vacation or PTO for Partial-day Absences In July 2006, the DLSE amended its Enforcement Policies and Interpretations Manual, at Section 51.6.15.4, to reflect the holding of the California Court of Appeal in Conley v. Pacific Gas & Electric Co. from 2005 (see September 2005 Employment Law Update). Under Conley, an employer may deduct partial-day absences from an exempt employee’s accrued vacation or PTO bank for absences of four hours more. If you have not done so already following the Conley decision, your company should review its policies on vacation or PTO and update as needed to ensure that exempt employees understand that a deduction from their vacation or PTO can occur for partial-day absences. Keep in mind that if an exempt employee has no available vacation/PTO time, the employer must pay the employee’s entire wages for the day if he or she works any portion of the day. NEXT: Denial of Motion to Certify Class of Grocery Store Managers Was Proper Because the Work of the Managers Varied Significantly
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