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We do not have a clearly defined sick leave policy for our exempt employees. Are we required by law to pay sick leave?

You are not required by law to have a sick leave policy. However, it is a good idea to have a bona fide paid leave plan, especially with exempt employees. Without a bona fide policy of paid leave, exempt employees would technically need to be paid for showing up for any portion of their paid work period. If, however, if you have established a bona fide sick leave policy, you are allowed to deduct from the exempt employee’s salary after the employee has exhausted the leave allowance, or before they are eligible to receive the leave. The key here is establishing a bona fide sick leave policy first!  For more information, please contact us.

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