As winter approaches, employers may need to shut down or operate with fewer staff due to snowstorms, icy roads, and power outages. This challenging weather can be stressful, so it is important for employers to clearly communicate their plans for paying employees to help ease uncertainty during these situations.

Employee pay rules vary depending on classification (nonexempt or exempt) and whether the employer decides to remain open or closed.

If the employer closes due to weather –

• Exempt Employees (salaried)
  • Full-day closure: Exempt employees must still receive their regular salary. Generally, the Fair Labor Standards Act (FLSA) prohibits docking pay for absences caused by the employer.
  • Partial-day closure: Same as above, exempt employees must still receive their regular salary.
  • PTO use: The employer may require exempt employees to use accrued PTO for the day as long as their salary remains intact. If an exempt employee is out of PTO, they must still receive their regular salary.
     
• Nonexempt Employees (hourly)
  • Full-day or partial day closure: If nonexempt employees do not perform work, the employer is not required to pay them for missed time. If nonexempt employees do perform work, FLSA requires employers to pay them for the hours worked.
  • PTO use: The employer may allow or require nonexempt employees to use accrued PTO to cover missed time. 

If the employer remains open –

• Exempt Employees (salaried)
  • If an exempt employee chooses not to work due to weather, employers may deduct PTO for the absence. If an exempt employee does not have PTO, the employer can deduct a full day’s pay only if the employee performs no work that day. If exempt employees work even briefly, they must receive their full salary.
     
• Nonexempt Employees (hourly)
  • Nonexempt employees must be paid for hours worked. If nonexempt employees miss time the employer may allow or require them to use accrued PTO.

To ensure compliance, it's essential to include a clear inclement weather policy in your employee handbook and communicate its details as winter approaches. Your policy should cover key topics such as how and when employees will be informed of business closures, employee safety measures, compensation, PTO requirements, and the possibility of remote work or flexible scheduling.

How employers handle pay during inclement weather affects compliance, morale, and trust. Keep in mind that requiring employees to use their PTO can negatively impact morale, especially if they've already made plans for their time off. Offering options like flexible scheduling and remote work can help maintain both productivity and positive employee relations.

Winter weather is unpredictable but early communication and a compliant inclement weather policy will help prevent workflow disruptions, clarify expectations, and ensure wage and hour compliance. Review your policy now so everyone is prepared when winter arrives.