This slide includes an example to illustrate the effect of improper deductions.  In the example, a manager who supervises two engineers and one chemist has docked the pay of an engineer on each of 12 days when the engineer arrived late for work during the last 3 months.  Because this is an actual practice of making pay deductions, the exemption would be lost for the engineer whose pay was actually docked and for the other engineer supervised by that same manager.  However, the exemption is not lost for the chemist supervised by the manager who made the improper pay deductions or for the engineers who are supervised by another manager.  The employer would owe overtime pay for all hours worked over 40 per week during the 3 months that the manager made the improper pay deductions.