Pay for exempt employees for business closing

sherrymiller

Our compnay is thinking of closing around the holidays. Can the company make it mandatory for exempt employees to use PTO? What if exempt employee does not have in PTO available?

njjel

We would pay our exempt staff and they would not be required to use banked time. However, I don't believe you would be mandated to do that. I'm sure someone will have the answer though.

Hatchetman

[font size="1" color="#FF0000"]LAST EDITED ON 12-12-02 AT 10:21AM (CST)[/font][p]Under FLSA, if the employer closes for less than a week, and the exempt employee works any part of that week, then the days the company is closed must be paid as part of the weekly salary. If the exempt employee is ready, willing and able to work on the day that the employer closes down, then the employee is entitled to pay for that day.

However, the employer MAY charge the accrued time balance of the exempt emplyee for that day (the hours that the employee would normally have worked had the compnay not closed down). BUT, if the exempt employee does not have accrued time balance available, the salary must still be paid.

While I doubt your state's laws would be more liberal to the exempt employee (barring the charging of accrued time balance), you should also check it out to make sure that state law would permit it to occur in the same manner FLSA does.

The particular FLSA regulation regarding paying the exempt's salary for the days the employer chooses to close down is 29CFR541.118(a)(1) [Code of Federal Regulations, volume 29, Section 541.118(a)(1)].