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Third Circuit Finds Deductions from Accrued PTO Do Not Violate Salary Basis Requirement for Exempt Employees
Littler Apr. 11, 2023 "the Third Circuit held that employer-provided paid time off (PTO) is a fringe benefit that is not part of an exempt employee's 'salary' for purposes of assessing compliance with the 'salary basis' requirement for certain 'white collar' exemptions under the Fair Labor Standards Act (FLSA). As a result, an employer may deduct from an exempt employee's PTO bank based on the quality or quantity of the employee's work without compromising the employee's exempt status under the FLSA." [Higgins v. Bayada Home Health Care Inc., No. 21-3286 (3d Cir. Mar. 15, 2023)] |
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