To pay or not to pay? Wage options when weather is a factor
“Neither snow nor rain nor heat nor gloom of night …” Sound familiar? This is part of the unofficial motto of the U.S. Postal Service. Maybe your company has a similar mantra about getting the job done despite the weather.
If your office closes due to bad weather conditions, such as snow or ice, do you pay employees or make them use their paid time off (PTO)? You might have to pay employees depending on the situation.
Salaried exempt employees
Whenever exempt (“salaried”) employees work part of their workweek, they have to be paid their normal weekly salary, with limited exceptions.
If a business closes for a day or sends employees home early because of bad weather, exempt employees still need to be paid for the entire day. If, however, a business remains open during bad weather, but exempt employees take the whole day off for personal reasons, they wouldn’t need to be paid for that day.
If a company closed for a whole week due to bad weather and employees didn’t do any work, a business wouldn’t have to pay exempt employees.
Generally, exempt employees can be required to use their PTO (for full- or partial-day absences) when they miss work due to a weather-related event. If they don’t have any PTO, the company would still need to pay them for business closures of less than a week.
Nonexempt employees
Addressing pay and PTO issues with nonexempt (“hourly”) employees is more straightforward. For the most part, employers only need to pay nonexempt workers for the hours that they actually work. If a business closes early because of a snowstorm, nonexempt employees can be sent home and not paid for any remaining time.
If they have PTO available, they could use that to cover their absences, or an employer could require them to do so.
Some states, however, have reporting laws in place that require employers to pay employees who come in to work but get sent home early. The details of these laws vary by state, and not all states require “call-in” pay.
Flexible company policies
What kind of flexibility is built into your company policies and procedures, if any?
While workplace flexibility is still a sought-after benefit, it’s also important to know what your options and responsibilities are when it comes to employee pay if your office closes due to inclement weather.
Key to remember: Employers should brush up on their policies and procedures regarding pay and benefits during bad weather events.