“Ask Sarah” Column

Dear Sarah,

We’re trying out “Summer Fridays” and letting people leave early. Can we adjust hours or pay for employees who don’t work a full day? Does it make a difference if they’re exempt or non-exempt?

Signed,
Hitting the Beach

Dear Hitting the Beach,

It definitely makes a difference, and there are several other considerations you must take into account. The rules for paying exempt and non-exempt employees under the Fair Labor Standards Act (FLSA) are not one-size-fits-all—and “Summer Fridays” can trip up well-meaning employers if you’re not careful.

For exempt employees:

Exempt employees must receive their full salary for any workweek in which they perform work, regardless of hours worked. So, if someone on your leadership team logs off at 2:00 p.m. on a Friday, you still owe them their full salary—even if they didn’t work a full day.

If they’re voluntarily leaving early, you can require them to use accrued PTO for the missed time but you can’t reduce their salary. And if they’re out of PTO, you can’t dock their pay for a partial-day absence. That would risk undermining their exempt status.

For non-exempt employees:

Non-exempt employees must be paid for all hours actually worked. If a non-exempt employee leaves early, you can pay them for the time they were on the clock, and that’s it. There’s no requirement to pay for the full day unless your policy or practice promises otherwise. Of course, this is the legal framework and you could have a policy which is more generous.

Just keep an eye on:

Consistency—make sure you’re applying your early release policy fairly.
Overtime—if someone stays late to “catch up before Friday,” that time still counts toward their 40-hour workweek.

For governmental employers:

If you’re a public employer, there’s one more layer. In Texas and many other states, governmental entities cannot give employees bonuses, time off, or other things of value unless authorized by policy, statute, or formal approval in advance. That means no early release just because you’re in a generous mood.

Offering extra time off without legal authority—even with good intentions—can violate constitutional provisions that prohibit gifts of public funds. Therefore, if you want to implement early release days for government employees, you’ll need to either tie the leave to an existing policy (such as flexible scheduling, comp time, or discretionary leave) or get formal approval from the appropriate governing body (such as a board or council).

Bottom line: Summer flexibility is a great perk, but make sure your approach complies with wage laws, and if you’re a public employer, double-check that you’re not giving away more than you’re legally allowed to.

“Ask Sarah” is prepared by Sarah Glaser, Chair of the Firm’s Employment Law Practice Group. If you would like additional information or have questions related to this article or other employment matters, please contact Sarah at 512.322.5881 or sglaser@lglawfirm.com.