HR Workforce Solutions
By Nonprofits, For Nonprofits
Question: Last week our offices were closed because of inclement weather. Do we need to pay our employees for the week? If not, would they be eligible for unemployment compensation?
Answer: When your business closes early, opens late, or closes for the week due to inclement weather, how you pay employees will depend on whether you have an inclement weather policy or an established practice for office closures. If you do not have a policy or practice, whether your employees are eligible for unemployment compensation depends on whether they are nonexempt or exempt. Further, whether employees would be eligible for unemployment insurance depends upon the circumstances and the particular state; employees may be able to qualify for some assistance through the state’s unemployment department.
Nonexempt employees need to be paid only for the time they have actually worked. If they have paid time off (PTO) accrued (whether vacation time or a PTO plan), then the company could deduct hours from the accrued bank to continue their pay, if the employee so desires.
If nonexempt employees come to work but are not allowed to work their full scheduled shift, a number of states impose a reporting time obligation requiring employees to be paid a minimum number of hours if they have reported for work.
However, exempt employees are paid on a salary basis and must be paid the same amount each week, regardless of the amount of work that they do. If you have a PTO plan, you can deduct from the exempt employee’s vacation or accrued time off bank to make the salary whole.
For example, management decides to send everybody home four hours into the day due to a blizzard and the offices remain closed the next day. Joe is an hourly employee in the warehouse with no accrued PTO and Mary is an exempt-level office manager with five days (40 hours) in her PTO bank. Joe would receive the four hours of pay for the day he worked and no pay for the remainder of that day or the following full day. If the company does not wish to pay Mary her entire pay for the time the office was closed, it may elect for her to receive four hours of regular pay for the time worked, and deduct from her PTO bank for 12 hours (the four hours remaining on the first day and eight hours for the next day). Mary will receive her full pay for the week.
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UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
