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Q: A manager mistakenly made a one-time improper deduction from the salaries of exempt employees. Does this affect the employees’ exempt status?

A: Improper deductions from salary may put the employees’ exempt status at risk. Under the federal Fair Labor Standards Act, however, there is a “safe harbor” which provides that the employees’ exempt status may be maintained if: (1) the company has adopted a written policy prohibiting improper deductions; (2) the policy has been clearly communicated to employees; (3) the policy includes an employee complaint mechanism; (4) employees who suffered an improper deduction are reimbursed; and (5) the company makes a good faith commitment to comply with the FLSA in the future. No similar provision currently exists under Washington’s Minimum Wage Act. Therefore, even if the company has complied with the FLSA’s safe harbor, there is still a potential challenge to exempt status under state law because of the improper deduction.