Companies face a lot of staffing decisions in a rough economy — which are often complicated by tough legal questions. For clarification, the Department of Labor (DOL) recently released a fact sheet on legally trimming exempt employees’ salaries and schedules.

Reducing salaries and hours for exempt employees can easily lead to FLSA violations. Here are the DOL’s answers to some of trickiest questions about legal staffing strategies during a slowdown:

1. Can we require exempt employees to take unpaid days off?

Only if it’s for a full week, the DOL says. Exempt employees must be paid for any week in which they perform any work — other than when a full day of pay is deducted because the employee took off for personal reasons.

But when the day off is the employer’s decision, pay can’t be deducted.

2. Can exempt employees volunteer to take time off without pay?

Employers can’t force exempt employees to take unpaid days off — but when it’s 100% voluntary, the DOL counts that as a “day off for personal reasons” and pay can be deducted in full-day increments.

3. Can we require exempt employees to use vacation time?

Yes, companies can deduct from an exempt employee’s leave bank for absences, even when it’s for less than a full day and the absence was mandated by the employer.

The tricky part: Exempt employees need to be paid a full salary in weeks in which they perform any work (except when a full day of pay is deducted when the employee is absent for personal reasons) — which means if someone’s leave bank is empty, pay cannot be deducted.

4. Can we just reduce exempt employees’ regular salary?

Yes — as long as salaries aren’t regularly changed to get around the salary basis requirement. What’s the difference? According to the DOL:

Allowable pay deductions involve “a prospective reduction in the predetermined pay to reflect long-term business needs,” rather than a “short-term, day-to-day or week-to-week deduction” based on how many hours employees work.

As businesses continue to be cautious in their hiring practices, cost containment measures are on the top of every boss’s mind. Here’s what most of them have been doing, according to a recent CareerBuilder survey:

1. Postponed start dates – To secure talent while delaying expenses, many employers are presenting job offers with start dates that have been pushed back.
2. Furloughs – Mandatory unpaid time-off is also becoming an increasingly popular way of reducing costs. At most companies, the furloughs are one week or less, the majority being one to two days.
3. Pay cuts – Pay is also being affected. Of the employers who cut wages, most reduced salary by more than 5%. Many are making pay cuts according to salary and title.
4. Hiring Freeze – Bringing new employees on board is tough right now, and most companies aren’t doing it. Though a few employers say they will be hiring going forward, many foresee a continued suspension of hiring.
5. Revised sick day policies – Many employers are reviewing their sick and paid time off policies. They’ve started offering fewer paid days off, and limiting the number of days that can roll over.
6. Fewer perks – Businesses are scaling back the benefits they give their employees as well. The main areas impacted are bonuses, 401(k) matching and medical coverage. Other items getting slashed are free refreshments, employee incentive trips and tuition reimbursement.

The Department of Labor (DOL) discussed that issue in a recent Opinion Letter. An employer asked for the DOL’s opinion on this situation:

Because of a drop in business, the company started putting employees on furlough. Workers are first asked to volunteer to take time off. Then, if there aren’t enough volunteers, the company chooses employees on a rotating basis to take mandatory leave.

In both cases, employees are given the option of using accrued PTO. If they don’t have any accrued leave or choose not to use it, the time off is unpaid.

The problem: The mandatory leaves are often shorter than a full week. So the company asked the DOL: Can an employer deduct less than a week’s worth of exempt employees’ salaries when they’re forced to take time off?

No, the DOL responded. Salary deductions can be made when an exempt employee takes a day off for personal reasons. But, according to the Fair Labor Standards Act, “if the employee is ready, willing and able to work,” deductions can’t be made because the employer decides to keep them home.

Employers are also allowed to reduce employees’ weekly hours and change their salaries accordingly. But if hours and pay fluctuate from week to week, the employees will no longer be considered exempt.

Read the entire Opinion Letter here.