Impact of Inclement Weather on Salaried and Hourly Pay

Here we go again.  In anticipation of an impending storm for the fourth straight year, following is a quick recap of the federal Wage and Hour requirements regarding employee pay during inclement weather.

• Hourly (Non-Exempt) Employees – No special requirements, any pay is at the complete discretion of the employer.  Non-exempt employees are due pay only for the hours actually worked.  If employees are credited for hours missed, the hours do not have to be counted towards the 40 hour overtime threshold.

There is also no requirement that a minimum number of hours be paid if an employee reports to work and is subsequently released early due to the weather.

At the discretion of the company, employees can certainly be allowed to use accrued vacation or other paid time off to cover any absences.

• Salaried (Exempt) Employees – Under the regulations, if an employee works any part of the company’s designated seven-day workweek, pay cannot be reduced due to an “Act of God”, or for any other reason that causes the company to close (holiday, business renovation, etc.).  This applies to both partial and full days missed.   However, the company can charge this missed time against available vacation or paid time off.

On the other hand, if the business is open, and the salaried employee is unable to report due to the weather, the salary may be pro-rated if the entire day is missed.  However, if the employee reports for any part of the day, the full salary is due for that day.  In addition, if the employee is able to perform any work from home, by phone or by computer, then the entire day is compensable.

• Salaried (Non-Exempt) Employees – The strict requirements do not change for employees paid under the Fluctuating Work Week method.  If any part of the seven-day work week is worked, the full base salary is due.  Pay for time not worked can be charged against vacation or paid time off balances.  With Daily Rate employees, the rules are same as at any other time – if any part of a day is worked, the full daily pay is due.

If, for any reason, a salaried exempt or non-exempt employee misses an entire seven-day workweek, as designated by the company, then no pay is due.

If you have any questions regarding the topic covered in this Information Release, you may contact our firm, Sloan, Montgomery, Gregory & Hall, Inc., at (803) 782-9246.

This bulletin is provided as a service to clients and is only to give information of a general nature.  It is not intended as, nor should it be considered, legal advice or opinion.