Sick and Exempt

“I have a manager who is out sick a lot and I’m trying to figure out if unpaid time is an option with exempt employees.”

Your HR Survival Tip

All California companies must have a Paid Sick Leave plan in place but the sick leave may also be provided through your PTO (Paid Time Off) plan that combines sick and vacation time. Exempt employees are those paid a salary for doing their job, irregardless of the number of hours worked. Use and payment of sick time with exempt employees is often confusing so you’re not alone.

You can be conservative and pay the exempt employee a full week’s pay even when they are absent. However, years ago, California’s Labor Commissioner provided guidance on exempt absences to help us navigate this tricky situation.

If the exempt employee calls in sick for the whole day:

• and they have sick time available — you record the sick time used against their balance and they will receive full sick pay for that day.
• and they have some sick time but not enough for the full day — you record the sick time used (up to their balance) but still pay for the whole day.
• and they have no sick time left — they can be unpaid that day.

If the exempt employee works part of the day and is sick part of the day:

• and they have sick time available — you record the sick time against their balance and they will be fully paid that day between the sick pay and regular pay.
• and they have some sick time but not enough — you record the sick time available (using up their balance) but still pay for the whole day.
• and they have no sick time left – they are still paid for that whole day

As you can see, if the exempt employee shows up at all and is sick, they must be paid for the whole day. If you have separate sick and vacation plans, you may allow them to use vacation time once they are out of sick time but you can’t force it. Please keep in mind this is for sick leave only; personal/vacation time off has slightly different rules.