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EXEMPT EMPLOYEES REDUCTION IN SALARY

Exempt employees—those who are not entitled to earn overtime—are paid on a salary basis.
This means, among other things, that exempt employees must receive the same pay for each

week in which they perform work, regardless of the quantity or quality of work performed, and
regardless of how many hours they actually work, unless an exception applies.

Our policy prohibits docking the pay of an exempt employee—that is, paying the employee less
than his or her full regular salary—except in the following circumstances:

 You take at least one full day off for sickness or disability, in accordance with our Paid
Time Off policy.
 You take at least one full day off for personal reasons other than sickness or disability
(for example, for vacation).
 You serve an unpaid disciplinary suspension of at least one full day, imposed in good
faith for violating a workplace conduct rule.
 You take time off to serve on a jury, as a witness, or in the military; you receive money
for jury fees, witness fees, or military pay; and the reduction in salary is an offset of the
money received only.
 You start or end employment with us midweek (that is, you do not start work first thing
Monday morning, or finish employment at the end of the workday on Friday).
 You violate a safety rule of major significance, and the amount of the reduction is
imposed as a penalty for that violation.
 You take unpaid leave pursuant to the Family and Medical Leave Act, to include
intermittent leave.

If you are an exempt employee and you believe that pay has been improperly deducted from
your salary in violation of these rules, please report it immediately using the complaint policy.

DIRECT DEPOSIT

As part of the onboarding process, we offer the benefit of direct deposit. We strongly
encourage the use of direct deposit for a number of reasons, including -

 saving you a trip to the bank as well as the gas expense
 having payroll funds sent directly to the bank and available for immediate use
 reducing risks associated with your paycheck arriving late, or being lost or stolen in the
mail.

Direct Deposit Forms may be obtained from the Human Resource Service Team as part of the

onboarding process and new hire orientation. After beginning direct deposit, it is also
important to submit a new form any time a bank account changes. If you don’t have a bank

Checks and Balances, Inc. 15 1/2017

Disclaimer: This Handbook contains internal confidential propriety information. The policies can change at any time, for any
reason, without warning.