[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR541.710]

[Page 202]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 541_DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, 
 
           Subpart H_Definitions and Miscellaneous Provisions
 
Sec. 541.710  Employees of public agencies.

    (a) An employee of a public agency who otherwise meets the salary 
basis requirements of Sec. 541.602 shall not be disqualified from 
exemption under Sec. Sec. 541.100, 541.200, 541.300 or 541.400 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.