When winter storms strike, businesses are often faced with the difficult decision of whether to shut down operations for employee safety, bringing wage and hour concerns to the forefront. During unexpected closures, employers must consider whether employees are entitled to be paid under the Fair Labor Standards Act (FLSA). Below is an overview of employers’ legal obligations during weather-related disruptions to operations.
Exempt Employees
Generally, employers must pay exempt employees their guaranteed salary under the FLSA, as employers cannot deduct pay for absences caused by the employer. This includes closures due to weather or business reasons. However, exempt employees who can work remotely during such closures are not affected from a wage and hour perspective.
Employers may require exempt employees to use accrued paid time off (PTO) during these shutdowns, although some employers may choose not to do so to avoid negative impacts on employee morale, particularly during difficult times. Additionally, the nature of exempt employees’ job duties might allow them to continue working remotely even without power or internet.
Nonexempt Employees
The FLSA mandates that employers pay nonexempt employees for all hours worked. If an office or facility closes due to inclement weather and a nonexempt employee cannot work remotely due to the nature of the job, the employer is not required to pay the employee for that time. However, employers may still choose to pay employees in these situations as a policy decision.
Similar to exempt employees, employers may allow or require nonexempt employees to use their PTO during weather-related closures. However, employers must be careful not to conflict with paid sick leave laws if they require employees to use too much PTO in a way that might violate local regulations.