It can be tricky for companies to understand exactly what is — and isn’t — OK under the FLSA. To test your knowledge of what employers can do when issuing furloughs, respond True or False to the following:

(Answers at the bottom.)

1. It’s always against federal law for employers to reduce the wages or number of hours of an hourly employee.

2. An employer can draw down the vacation time of a salaried exempt employee when the employee is absent due to a lack of work.

3. A salaried exempt employee cannot volunteer to take time off work due to a lack of work.

Answers

1. False. The Fair Labor Standards Act (FLSA) doesn’t prohibit employers from lowering an employee’s hourly rate — provided the rate paid is at least the minimum wage — or from reducing the number of hours the employee is scheduled.

2. True. An employer can reduce an exempt employee’s leave for the time the employee is absent — provided the employee still receives payment equal to his or her predetermined salary in any week work is performed. But once all an employee’s leave is used up, he or she must still receive his or her full salary.

3. False. If the exempt employee’s decision to take time off is completely voluntary (and for reasons other than sickness or disability), he or she can take time off — and a salary deduction can be made.

Tags: exempt employee, federal law, FLSA, furloughs