Labor & Employment Law

Snow Day Compensation For Exempt Employees Is An Issue

By Mark Tabakman

We just got clobbered again in New Jersey with a blizzard and many businesses were again closed.  One inquiry I often get from employers at these times relates to their obligations under the Fair Labor Standards Act to pay exempt employees their full salaries when either they take a snow day or the establishment is closed.

This used to be a confusing issue but has now been clarified by the US Department of Labor in its issuance of Opinion Letter No. 2465 (FLSA2005-46) October 28, 2005.   Now, an employer who remains open for business during adverse weather conditions may make a deduction, for full-day absences only, from the salaries of exempt employees who choose not to report to work that day due to the emergency.  Such full day absences are treated as being taken for "personal reasons" and the deduction will not undermine exempt status.

The deduction should be pro rated based on the usual number of days the exempt employee works.  An employee usually working five days would then suffer a one-fifth reduction.

The Opinion Letter also emphasized that if an employer closes the facility for a weather related emergency for less than a full work week, the employer is then obligated to pay the full salary for any exempt employees.

The moral seems to be, at least from the DOL perspective, that it is is better to stay open in a blizzard.

Full post as published by Wage & Hour - Development & Highlights on January 13, 2011 (boomark / email).