Pay During Inclement Weather Closures

Storm

Pay During Inclement Weather Closures – A Q&A from Crescent Payroll

Q:  If our company closes due to inclement weather, are we required to pay employees?

A:  Generally, it’s up to your company to decide how to handle weather-related absences and tardiness.  Private employers may determine whether such absences and tardiness will be considered unexcused or excused, what the proper call-in procedures are and if employees may make up the missed time on another day that week.  Of course, if you have employees who are covered by a collective bargaining agreement or an individual employment agreement that addresses inclement weather situations, you’ll need to abide by the applicable contractual provisions.

Pay issues related to inclement weather days are, in many ways, dependent on your company policies as well.  Under the Fair Labor Standards Act (FLSA), you don’t need to pay non-exempt employees for time not worked, meaning you don’t need to pay non-exempt employees for time missed due to weather-related reasons.  This applies whether your business completely shuts down for inclement weather, or if it remains open and individual employees can’t report to work.  Of course, your company may choose to pay non-exempt employees under inclement weather conditions, perhaps when your business sends workers home or closes completely. Alternatively, you may choose to allow or require employees to use vacation or other accrued paid time off to receive pay during inclement weather days.  Such pay policies go above what is legally mandated for non-exempt employees so your company should decide in advance how it will pay employees when weather interferes with your business operations.

Exempt employees, on the other hand, can’t have their salaries reduced “for absences occasioned by the employer” so if your company closes due to bad weather for less than a full workweek, you must pay exempt employees their full salary for that week.  Even if your business stays open but an exempt employee fails to report to work due to the weather, you need to be cautious about salary deductions.  Under the FLSA, if an exempt employee misses an entire day of work due to adverse weather conditions when the employer is open for business, the employer may lawfully deduct one full-day’s absence from his or her salary.  Employers may not, however, deduct pay for partial-day absences.  In addition, in today’s business environment, many exempt employees may be able work from home on bad weather days thanks to technology such as remote access to computer systems, cell phones and call forwarding, email and other telecommunication devices.  If an exempt employee is able to work remotely, you should not deduct pay even if inclement weather keeps the employee out of the office.

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