Must I pay my employees when I close my business because of a snow storm?
Snow is almost upon us, so it’s time to clarify wage payment rules.
Generally, your hourly (non-exempt) employees are only entitled to pay for the time they actually perform work for you. Whether you close your business or the employee is unable to show up for work because of a snow storm it doesn’t matter. Non-exempt employees are not entitled to pay, since they didn’t work. As a business you may have policies, such as paid time off, which entitle non-exempt employees to receive their wages for time not worked, but there is generally no legal requirement that you compensate these employees for time they did not actually work.
For your salaried exempt employees, however, they would be entitled to their full weekly salary if you closed the business for any reason. Basically, if such employee is ready to work but there is no work for them, no reduction from their wages should occur.
Thompson Coe’s Tips of the Week are not intended as a solicitation, do not constitute legal advice and do not establish an attorney-client relationship.