What significant legal risk does an employer face if they improperly dock an exempt employee's weekly pay for missing only a few hours of work for personal reasons?
Answer
The employee may lose their exempt status, leading to potential liability for unpaid overtime.
If an employer reduces an exempt employee's weekly pay for an improper deduction (like a partial day absence), this action may violate the salary basis requirement, potentially causing the employee to lose their exempt status and making the company liable for back overtime pay.
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