How to use the disciplinary pay cut calculator
Korean labor law caps a disciplinary pay cut at half a day of average wages per incident and one tenth of a pay period in total. The United States has no equivalent percentage cap, so this tool works from the two federal rules that actually limit how far pay can be docked.
Legal basis — For an exempt salaried employee, the FLSA salary basis rule at 29 C.F.R. 541.602 says the predetermined salary generally cannot be reduced because of the quality or quantity of work, with narrow exceptions in subsection (b) such as a full-day unpaid suspension for violating a written conduct rule or a good-faith penalty for a major safety infraction. The standard salary level in 29 C.F.R. 541.600 is $684 per week. For a non-exempt employee, 29 U.S.C. 206 means pay after any deduction must still cover at least the applicable minimum wage for every hour worked. Figures reflect law as of September 2026.
Many states go further than federal law: some require written employee authorization for any deduction, and some prohibit deductions for cash shortages, breakage or customer walkouts entirely. Check your state labor code before applying a deduction.
This calculator is for reference only and is not legal advice. Consult a licensed attorney or your state labor agency about your specific situation.
Frequently Asked Questions
There is no general federal cap expressed as a share of pay. The limits come from two directions: an exempt employee generally must receive the full weekly salary under 29 C.F.R. 541.602, and a non-exempt employee must still clear the applicable minimum wage for all hours worked under 29 U.S.C. 206.
29 C.F.R. 541.602(b) lists narrow exceptions, including full-day unpaid suspensions for infractions of written workplace conduct rules and penalties imposed in good faith for major safety rule violations. Partial-day disciplinary deductions generally put the exemption at risk.