When can I make a deduction from the salary of an exempt employee (for discipline, absences, and so on)?

Exempt employees must be paid on a salary basis, which means the weekly salary cannot be subject to deductions based on the quantity or quality of work performed. Certain deductions are allowed for absences which are initiated by the employee (such as personal/vacation days and sick days, with some restrictions). However, salary deductions are rarely allowed for absences initiated by the employer (such as company closings, including holidays). The salary basis rule (541.602) literally says:

"An employee is not paid on a salary basis if deductions from the employee's predetermined compensation are made 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."