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Question: Must an employer allow an employee to use vacation time after being suspended for a day?
Answer: Not necessarily, but it would be helpful if this rule was captured in a company policy or handbook. As long as the suspension doesn’t discriminate against a protected class or violate any safety laws (like whistleblower protection laws), and the suspension is in line with previous practices when other employees have been in similar circumstances, then the employer shouldn’t have to allow vacation time. Nonexempt (hourly) workers may be suspended without pay, and employers don’t have to allow them to use vacation time to cover the absence (although it is an option).
Under federal law, employers may make salary deductions for exempt (salaried) employees “for unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions.” If the employer decides to enforce an unpaid suspension, it is important to document what happened and keep a record.