[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR541.5d]

[Page 183]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 541_DEFINING AND DELIMITING THE TERMS ``ANY EMPLOYEE EMPLOYED IN A 
 
                      Subpart A_General Regulations
 
Sec. 541.5d  Special provisions applicable to employees of public agencies.

    (a) An employee of a public agency who otherwise meets the 
requirements of Sec. 541.118 shall not be disqualified from exemption 
under Sec. Sec. 541.1, 541.2, or 541.3 on the basis that such employee 
is paid according to a pay system established by statute, ordinance, or 
regulation, or by a policy or practice established pursuant to 
principles of public accountability, under which the employee accrues 
personal leave and sick leave and which requires the public agency 
employee's pay to be reduced or such employee to be placed on leave 
without pay for absences for personal reasons or because of illness or 
injury of less than one work-day when accrued leave is not used by an 
employee because--
    (1) permission for its use has not been sought or has been sought 
and denied;
    (2) accrued leave has been exhausted; or
    (3) the employee chooses to use leave without pay.
    (b) Deductions from the pay of an employee of a public agency for 
absences due to a budget-required furlough shall not disqualify the 
employee from being paid ``on a salary basis'' except in the workweek in 
which the furlough occurs and for which the employee's pay is 
accordingly reduced.

[57 FR 37677, Aug. 19, 1992]