It’s that time of year again when employers think about their holiday schedules and when to close their organizations. Many employers choose to shut down for a day or two and provide holiday pay for those days, while others wish to shut down for a longer period. The option you choose may drive how and whether you have to pay your employees.
Nonexempt employees only need to be paid for their actual hours worked. So if you shut your organization down, you are not required to pay them.
However, your exempt employees can present challenges, depending on how long you decide to close. You can require exempt employees to use their vacation or paid time off if they have any available, but what do you do if they have exhausted this time? Unless your exempt employees do no work—including checking emails and answering phone calls—for a full workweek, they must be paid for a full workweek.
Any time you are considering deducting pay from an exempt employee, contact an MSEC attorney to discuss.