For many years there has been a controversy in Washington state as to whether the exempt status of salaried employees is in any way affected by the manner in which deductions are taken from paid leave banks for such employees. Recently, the Washington Supreme Court and the Department of Labor and Industries (L&I) both weighed in on the subject indicating that (1) partial-day deductions from leave banks are generally permissible, but may invalidate exempt status in some cases, and (2) deductions from pay may be made in whole-day increments by private employers and in partial-day increments by public employers once a sick leave bank is exhausted.
Washington Supreme Court
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