What is a strict consequence if an employer makes an improper deduction from an exempt employee's salary for tardiness?

Answer

The employer risks losing the exemption for that employee across an entire pay period.

Making improper deductions, such as docking pay for a partial day absence when paid leave is available, violates the salary basis test, potentially rendering the employee non-exempt and eligible for overtime for all hours worked that week.

What is a strict consequence if an employer makes an improper deduction from an exempt employee's salary for tardiness?

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