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Indiana Wesleyan University Support Knowledge Base

Salary Deduction Policy for Exempt Employees


The Fair Labor Standards Act specifies certain circumstances where pay deductions can be made from exempt employees:


Salary Deductions During a Disciplinary Suspension

A salaried employee of the University who misses one or more full days work while serving a disciplinary suspension for violating a workplace conduct or safety rule will not be paid for the number of full days missed.

Improper Deductions Policy

The University strictly prohibits any and all improper deductions from an employee’s pay.  Deductions from an employee’s pay can only be made after the Payroll Services Office has received written consent from the employee.  Exceptions to this policy are deductions that would be made based on a court order received by the University (i.e. child support, garnishments, etc.).

Normal authorized deductions are:

·  Tax Withholdings

·  Direct Deposits to Accounts

·  Retirement Plan Contributions

·  United Way

·  Voluntary Supplemental Insurance Plans

·  Contributions to the University

·  Health Insurance Premiums

·  Flexible Spending Accounts (Section 125)

Complaint Procedures

If an employee believes an improper deduction has been made from his/her pay, the following procedures should be followed:

1.   Contact the Payroll Services Office in writing about the deduction in question.  If, after contacting the Payroll Services Office, the employee is not satisfied with the response received;

Contact the Vice President of Financial Affairs to file an official complaint.  All complaints will be responded to in as timely a manner as possible. If it is determined that an improper deduction was made, the Payroll Services Office will reimburse the employee the amount of the improper deduction as soon as is practical and will also make efforts to insure that the improper deduction is not repeated in the future.


This policy applies to all employees of the University.


17-Mar-2015 - Date conversion to KB


Policy information

Employee Policy 300.01.09


Executive Director for Human Resources

Approved by

Vice President for Business Affairs/ CFO

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