This holiday’s round of winter storms affecting the country has caused many employers to ask about “Snow Day Pay”. How should or can an employer handle payroll during weather challenges such as these many of us are experiencing? Here are a few determinations from the Department of Labor:
If the employee “is exempt or salaried” and the business is open, you may dock the employee’s pay or use Paid Time Off (PTO) in full day increments only. If the employee works for any part of the day, you must pay him or her for the entire day.
If the employee “is exempt or salaried” and the business is closed, you may use the employee’s PTO for full-day absences, again only if absolutely no work was performed that day. However, if the exempt employee has no PTO left and business is closed, you may not deduct any pay; the employee must still receive his or her full salary.
If the employee” is nonexempt”, you may deduct the exact hours absent from his or her pay or PTO bank in either situation.
Exempt Employee: Exempt employees are those who are exempt from certain wage and hour laws, i.e. overtime pay; usually applies to administrative, executive, or professional employees who receive an annual salary, in equal payments weekly, bi-weekly, or at some other specified time interval.
Non-exempt Employee: employees receive hourly wages; they are subject to wage and hour laws, i.e. overtime pay; usually applies to non-professional employees.
The Department of Labor has released detailed information in how to handle these scenarios, found at their website. You can also contact your PEO’s HR Department for more information or your LL Roberts Group Representative (toll free) at 877.878.6463.