The U.S. Dept. of Labor has issued a fact sheet intended to answer some of the most frequently asked questions that arise when employers furlough employees and require them to take other reductions in pay and/or hours worked due to the poor economy.

One of the frequently asked questions concerns the furloughing or pay reduction of an exempt employee who is paid on a salary basis. According to the DOL: “An employer must pay an exempt employee the full predetermined salary amount ‘free and clear’ for any week in which the employee performs any work without regard to the number of days or hours worked. However, there is no requirement that the predetermined salary be paid if the employee performs no work for an entire workweek. Deductions may not be made from the employee’s predetermined salary for absences occasioned by the employer or by the operating requirements of the business. If the employee is ready, willing, and able to work, deductions may not be made for time when work is not available. Salary deductions are generally not permissible if the employee works less than a full day. Except for certain limited exceptions found in 29 C.F.R. 541.602(b)(1)-(7), salary deductions result in loss of the section 13(a)(1) exemption.”