Docking manager's pay can end exemption.

The Fair Labor Standards Act prohibits you from docking the pay of exempt, salaried employees because of the "quality or quantity" of their work. That means they must receive their full weekly salary when any work is performed during the week.

While certain types of deductions are allowed, be aware time- or work-based deductions could destroy a manager's exempt status.

Recent case: Two Subway restaurant franchisees reduced managers' pay if those employees didn't work a full eight-hour day.

But once the managers' pay was reduced, it was no longer guaranteed--and, thus, the employees were no longer exempt under the FLSA.

As a result, 52...