Characterizing leave appropriately is an important part of employee management.  Make sure that employees know what their entitlements are and that you have enough information to accurately characterize any leave an employee takes.  That means ask the questions up front, when the employee requests leave.  There are many overlapping state and federal leave laws, which often also overlap with company policies.  Let the employee know when you are counting the time under more than one policy or legal entitlement.  Let the employee know when he or she has exhausted all paid time off available.  And when there is any doubt, never dock an exempt employee's pay for time off without speaking to counsel or a well-trained HR benefits specialist.