A Standard Clause to be included in a compensation and pay procedures policy or employee handbook that offers employers a safe harbor defense to claims that it made improper deductions from an exempt employee's salary under the Fair Labor Standards Act (FLSA). This Standard Clause applies only to private workplaces. It is based on federal law. State or local law may impose additional or different requirements but this document will be useful and relevant to employers in every state. This Standard Clause has integrated notes with important explanations and drafting tips.