With our region being in the midst of the winter weather season, this is a good time to make sure your organization has a formal policy in place related to facility closure.
- Including how the day will be treated for employee pay purposes.
Having such a policy may seem like a simple task, but it has two implications that need to be taken into account:
- The Fair Labor Standards Act
- Employee Relations
Fair Labor Standards Act
If the company closes for weather-related reasons, nonexempt employees are notrequired to be paid. However, exempt employees are required to be paid—without being charged against paid time off (PTO).
- Nothing prohibits you from reminding exempt employees of the expectation that they are expected to work what ever hours are necessary to “get the job done”.
So you have three basic options for non-exempt employees:
- Mandate that the day be charged against PTO
- Allow them the choice of using accrued PTO to cover the day or taking the day as unpaid
- Go beyond the Act & pay them without charging the time to PTO
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EMPLOYEE RELATIONS
This is trickier than FLSA compliance—unless your policy calls for option 3. above. That’s because the other two options result in your differentiating between your non-exempt & exempt employees.
- Most employers do in fact have different treatment of these two groups in some aspects of employment—some favorable for one group & some favorable for the other group. For example:
Non-exempt employees being paid time & ½ for hours in excess of 40 in a week whereas exempt employees typically receive no additional compensation
Exempt employees receiving favorable treatment in terms of hours flexibility or some benefit, such as in PTO or life insurance.
- Nonetheless, differing treatment of pay for the two groups for a facility closure can create an employee relations issue for you to address.
If your organization needs help with this policy (or other policies) or employee relations matters, Trinity’s Team of Consultants can help you.
- For more information, e mail Trinity at info@TrinityHR.net or visit our website at www.TrinityHR.net.