Stormy Weather FAQ: Are your Policies up to Snuff?

03/05/07

Spring often brings thunderstorms and other inclement weather, and ushers in hurricane season which begins in June. Severe weather raises several of HR issues, specifically concerning how exempt employees must be compensated during work stoppages. With regard to time off, would your severe weather policies pass a Department of Labor review?

Spring is almost here. And with it often comes a slew of nasty and even dangerous weather. What does your company do when workers can’t come in or work is canceled due to severe weather? Recent opinion letters issued by the Department of Labor may help provide guidance for paying exempt employees during weather-related absences. Here are the answers to some frequently asked questions concerning severe weather policies.

Q. My office closes regularly in advance of severe weather. Do we have to pay our salaried employees their full weekly salaries?

A. Generally, salaried employees – those exempt from wage and hour laws under the Fair Labor Standards Act – must be paid their full weekly salaries if the employer closes the business for a period of less than a week. Salary deductions are permissible if the employee takes time off from work for “personal reasons,” but other than sickness or accident, the Department of Labor makes clear in a recent ruling that if the employee is “ready, willing and able” to work, deductions may not be made for time when work is not available.

Q. We generally remain open during heavy snows, but some employees can’t make it in. May we direct them to take a vacation day or an unpaid leave without jeopardizing their exempt status?

A. Generally, yes. Vacation and leave-bank deductions may be made when the employee is absent from work for a day or more due to personal reasons, other than sickness or accident. Lack of transportation – even during periods of severe weather – is considered a personal reason. You may, therefore charge the employee vacation time or make a leave-bank deduction for time missed, provided the office remains open. The key difference between this question and the first is that, in this case, the employee is not “ready, willing and able” to work.

Q. Can an employer mandate that exempt staff take vacation time when the workplace closes due to bad weather?

A. Yes, if certain conditions apply. The worker must participate in a bona-fide benefits program, and there must be days of vacation or PTO available for the employee to take. But you may not debit the salary of an exempt worker if your office closes for a period of less than one week. This is true even if the employee has no accrued benefits in the leave bank. A worker may, however, accrue a negative leave-benefits balance.

Q. What about probationary employees and workers who have used all their accrued leave time? Can we choose not to pay them without jeopardizing their exempt status?

A. For periods of absence of less than a full day, no. You must pay them their full guaranteed salary, even if they have no accrued leave benefits. But you may deduct for a full day’s absence, if the employee’s absence is for personal reasons other than sickness or accident.

Q. What about hourly employees?

A. Generally, you are not required to pay hourly employees for hours not worked. This is true whether your workplace closes or remains open.

Finally, you may wish to formalize your severe weather plan, so that all employees and workers know what to expect. You can expect higher absentee rates among parents – particularly when school is cancelled. And you may be able to make use of flextime and telecommuting arrangements to minimize disruption to productivity.