If a worksite is closed due to inclement weather, do employees need to be paid for that time?
Quick Answer
Nonexempt employees get paid only if they work remotely or are on call during the closure, while exempt employees get paid their full weekly wages if they perform any work during the week that the closure occurred.
Legal Perspective
Pierson Ferdinand
Philadelphia, Pennsylvania
It depends on whether the employee is classified as exempt or nonexempt under the Fair Labor Standards Act (FLSA), says employment attorney Eric Meyer of the firm Pierson Ferdinand.
Under the FLSA, nonexempt employees only get paid for hours worked. So, for example, if the office is closed for a snow day and the nonexempt employee does not work, the employee is not paid. Easy peasy.
However, if nonexempt employees work remotely, they should get paid for that time. So, either (a) instruct your nonexempt employees not to work remotely or (b) remind your nonexempt employees who work remotely to track their time accurately.
Note: If a nonexempt employee ignores your instruction not to work remotely, you still have to pay that employee – but you can discipline the person, too.
Additionally, if a nonexempt employee must remain “on-call,” you must pay that nonexempt employee (unless they can use that time for their personal benefit).
On the other hand, exempt employees who perform any work during the week in which the office is closed for a snow day get paid their full weekly wages.
If the exempt employee has accrued PTO, you may require the exempt employee to use PTO for the snow day. However, you cannot dock pay if the exempt employee has no accrued PTO. Deducting an exempt employee’s wages may convert that employee’s status to nonexempt and expose you to liability for overtime.
Relevant Case Law
Acosta v. Team Envtl., LLC
Hansberger v. L’Italia Rest., LLC
Fischer v. Cable Servs. Co.
HR Insight
Clear HR Solutions
Allentown, Pennsylvania
Maybe, says VP of HR Jackie Plunkett. The primary factors are employee classification, state and policies.
There is a difference in how you treat exempt (salaried) and nonexempt (hourly) employees. An exempt employee is paid for the full week even if days are missed, and a nonexempt worker only needs to be paid for hours worked.
Some states have laws related to weather and employee pay so be sure you are compliant within the states you are doing business in.
Finally, you should have a policy on how weather-related closures or delays are handled. Your policy should outline if scheduled hours or only worked hours are paid, the usage of any PTO if applicable and a notification procedure. Make sure the policy addresses both the closure and the employee pay and is followed consistently.
Vaxcel International Co. Ltd.
Carol Stream, Illinois
Employees get paid for all hours worked, says HR Manager Kim Schrader. If the business is closed due to inclement weather, nonexempt employees are not working and, therefore, do not need to be paid.
Exempt employees still need to be paid if they have worked during that week.
However, if your company has a written policy or agreement that the company covers inclement weather closures, then all employees need to be paid.
The Cost of Noncompliance
‘Snow day credits’ shortchange workers on OT: Company pays $3.65M in back wages, damages
Who was involved: Team Environmental, LLC, a construction company based in West Virginia, and 298 of its workers who were allegedly shorted on overtime pay.
What happened: According to a lawsuit filed by the DOL, the employer failed to pay time-and-a-half to employees who worked more than 40 hours in a single workweek. Specifically, the employer excluded payment for inclement weather days from overtime calculations, the DOL asserted, which significantly – and illegally – reduced employees’ overtime pay.
In the DOL’s view, this amounted to violations of Section 7 of the FLSA, which requires employers to pay time-and-a-half to employees for hours worked over 40 in a single workweek.
Result: A federal court in West Virginia approved a consent decree that resolved the lawsuit. The consent decree enjoined the company from future FLSA violations and required it to pay:
- $1.85 million in back wages to the affected employees, and
- Another $1.85 million in liquidated damages.
Info: Acosta v. Team Env’t, LLC, No. 2:16-cv-03491, 2019 U.S. Dist. LEXIS 242173 (S.D. W. Va. 3/4/19).
Key Takeaways
- When deciding whether and how to compensate employees when there is a weather-related workplace closure, begin by identifying whether the employee is exempt or nonexempt.
- Nonexempt employees are to be paid for the closure period if they work remotely or are on call during it.
- Exempt employees are to be paid for the closure period if they perform any day during the week that the closure took place.
- Include a policy regarding weather-related workplace closures in your employee handbook.
- Address common questions before any weather-related closure, such as whether remote work is permissible during a closure period.
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