Pay Deductions

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Recording, Reporting & Payment of Work Time

Pay Deductions

Staff performing exempt work at Duke University and Health System must be paid on a salary basis. Improper pay deductions from such staff members’ salaries are prohibited. Thus, although subject to certain exceptions, staff performing exempt work must receive a full salary for any week in which they perform any work - without regard to the number of days worked or how well they perform.

Consistent with these regulations, Duke may take deductions from the salary of staff performing exempt work but only in the following situations:

When an absence from work for one or more full days for personal reasons occurs due to reasons other than sickness or disability (and when vacation or paid-time-off accrual has been expended).
When an absence from work for one or more full days occurs due to sickness or disability if deductions are made under a bona fide plan, policy, or practice of providing wage replacement benefits for these types of absences.
When it is necessary to offset any amounts received as payment for jury fees, witness fees, or military pay.
When penalties imposed in good faith for violating safety rules of "major significance” occur.
When unpaid disciplinary suspension of one or more full days is imposed in good faith for violations of workplace conduct rules, such as rules prohibiting sexual harassment or workplace violence.
When a proportionate part of a staff member's full salary is paid for time that a staff member actually works in the first and last weeks of a period of employment.
When unpaid leave under the Family and Medical Leave Act occurs.

Deductions are allowed for certain types of absences (as described above) for "one or more full days." This means that a deduction may be taken from an exempt-status staff member’s salary only in full-day increments. Deductions from salary for partial-day absences are not permitted under federal regulations – except for those occurring in the first or final weeks of a staff member’s employment or for unpaid leave taken under the Family and Medical Leave Act.

Managers and supervisors should contact a Human Resources representative within Duke’s Rewards and Recognitions office for answers to any questions regarding this policy. It is Duke’s policy to comply with all FLSA regulations including the salary basis requirements of the FLSA. Therefore, Duke prohibits all managers from making any improper deductions from the salaries of staff members performing exempt work. Duke desires that all staff be aware of this policy. Duke will not allow deductions that violate the FLSA.

If you believe that an improper deduction has been made from your salary, please report this concern to your direct supervisor or to Rewards and Recognitions immediately. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, you will be promptly reimbursed for any improper deductions made.

Voluntary Payroll Deductions: The type and amount of all deductions and the number of federal and state tax exemptions are printed on the paycheck stub.	Staff may voluntarily elect payroll deductions for a variety of services including – but not limited to – benefits programs, uniforms, hospital bills, parking fees, recreation club dues, United Way, DukeCard debit functions, on-campus store sales, Duke Annual Fund gifts, and many other services.
	First Check in the Month	Second Check in the Month	Every Check
	Deductions occur for supplemental life insurance, personal accident insurance, group dental, vision, long-term care, universal life, and parking.	Deductions occur for health insurance plans.	Deductions occur for personal casualty insurance, reimbursement accounts, and the Savings for Retirement Program (for eligible hourly-paid staff).
	Termination: Upon termination, a staff member’s pay is subject to all involuntary deductions established and to all voluntary deductions previously authorized. The terminated staff member may request that voluntary deductions not be made from his or her final paycheck by timely completing and signing an authorization deleting these voluntary deductions. This process can be taken care of by contacting or visiting Duke’s Benefits Office. Deleting voluntary deductions is the sole responsibility of the staff member. If the staff member does not initiate action to delete any or all voluntary deductions, those deductions will be taken from a final paycheck. In the case of deletion, any contribution normally made by Duke in the affected category will not be made. Some voluntary deductions may be deleted based on eligibility.
Involuntary Payroll Deductions	Federal and State laws require that employers withhold taxes from wages and salaries. Most staff are subject to Federal Income Tax, North Carolina State Income Tax, and Social Security deductions. Deductions are made by Corporate Payroll Services on the basis of information furnished by the staff member with the Federal W-4, State NC-4, and the designated state's withholding forms. Every staff member is responsible for updating Corporate Payroll Services with all changes in tax exemptions, marital status, and home address. Failure to submit the appropriate forms will result in default to a “single” marital status with zero allowances.
	Garnishment and Bankruptcy
	Duke is obligated by federal and state law to deduct or garnish wages from staff paychecks when child support, unpaid student loans, bankruptcy collection, or unpaid taxes are owed and/or overdue. Deductions from staff wages occur when Duke’s Corporate Payroll Services receives a “Summons and Levy in Garnishment” or a “Wage Earner Plan” from federal or state institutions. Garnishments remain active until Corporate Payroll Services receives a release or an amendment of these federal and state decrees. Duke does not refund any incorrectly deducted funds due to requisite garnishments. Instead, staff must request refunds from the agency directly authorizing the deduction.

Policy Details

hr@duke.eduLast Modified: Thursday, June 29, 2006