Question: When and how can suspensions can be used? What, if any, ramifications come with them?
Response: There is no federal or state law in the state where the company operates that prohibits employers from suspending employees as a disciplinary action or while an investigation takes place, as may occur if the employer reasonably determines that it can more fully and fairly investigate a situation in the employee's absence or where the alleged misconduct is so severe that it would warrant immediate suspension or discharge if the allegations are substantiated. That said and as discussed below, in some cases an UNPAID suspension as to an exempt employee can jeopardize the salary basis that is otherwise required to maintain the exemption status, but even in this scenario an unpaid suspension does not expressly violate the law. Non-exempt employees, including any as may be subject to a tip credit, can be subject to unpaid suspensions absent a contract that precludes them. Read More.