There are some circumstances under which an employer can deduct the pay of a salaried employee without failing the salary basis test and causing the employer to be liable for overtime pay. The following deductions are permitted for otherwise exempt employees:
an absence from work for one or more full days for personal reasons other than sickness or disability;
absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness (for example, when an employee is required to use part of a sick time allotment);
to offset amounts employees receive as jury or witness fees, or for military pay;
for penalties imposed in good faith for infractions of safety rules of major significance; or
for unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions.
Also, an employer is not required to pay the full salary in the first or last week of an exempt employee's employment (unless that employee works the full week), or for weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act.