Q. "When can we deduct from an exempt employee's pay?"
Answer:
In general, if an exempt employee performs any work during the workweek, you must pay them their full salary amount. Deductions are allowed, however, for legally required withholding and benefit elections.
There are a handful of other situations in which a deduction from an exempt employee's salary would be permissible under federal law:
For a workweek in which the employee performs no work
In the initial/final week of employment based on number of hours worked
For personal absences of 1+ full days (other than sickness or disability)
For absences of 1+ full days due to sickness or disability, if the deduction is made in accordance with a paid sick leave plan
To offset jury/witness fees or for military pay
For safety or major infraction penalties, in accordance with clearly established policy (Note: Some states don't allow this)
For unpaid disciplinary suspensions for workplace conduct rule infractions (Note: Some states don't allow this)
For leave taken under the Family and Medical Leave Act
If none of these situations apply, an exempt employee must receive the full salary for any week in which they perform any work, regardless of the number of days or hours worked.