Wage And Hour Considerations For The Winter Season

For businesses located in areas affected by winter storms, it’s essential to familiarize yourself with wage and hour rules. There can be severe winter storms that prevent employees from coming to work. As a business owner, you may question if and when you need to pay employees affected by weather-related disruptions. Whether your employees are late for work due to road conditions, having to shovel their driveways, kids’ schools being closed, or even the business being closed, it’s critical that you understand your responsibility in all situations. However, the Fair Labor Standards Act (FLSA) and other state laws don’t stop, even during a blizzard.

What You Must Know

Employee pay ultimately comes down to the following factors:

Non-exempt status
Exempt status
State and Federal laws
Company policies

Non-exempt status

Pay for non-exempt, hourly employees is straightforward, with a few exceptions. Non-exempt workers are entitled to minimum wage and overtime pay when working more than 40 hours per week. These workers are to be paid for the hours they work. If the employer closes the business early or the employee is late due to road conditions, they only need to be paid for the time they work.

However, in some states, there are laws in place for “reporting time pay” or “show-up pay” that requires non-exempt employees to be paid for a certain number of hours whenever the employees report to work as scheduled, even if work isn’t available. In addition, state and city laws could affect an employee’s pay, which requires an employer to allow an employee to use paid leave for an absence related to a snow emergency or school closing. As laws vary from state to state, you must stay on top of the ever-changing rules and regulations.

Exempt status

Exempt employees do not receive overtime pay and don’t qualify for minimum wage as they are typically paid a salary rather than by the hour. During the winter months, when roads are dangerous, and businesses shut down, it matters whether the employer is closed for business, or the employee is unable or unwilling to come to work because of the weather. For example, if a business is closed because of weather conditions, exempt employees must be paid their normal salary for the week if they’ve worked at least one day throughout that week.

However, if the business is open but the employee chooses not to come in due to a storm, then the FLSA permits the employer to treat that as personal time off. Should an employee arrive late or leave early due to poor driving conditions, the FLSA does not permit employers to deduct partial days from these workers’ wages. Depending on state or local laws, it could require more from an employer than federal law does.

Let’s Have A Compliant Winter Season

Any business owner who has experienced winter storms understands it can have a drastic effect on one’s business. From having to shut your business down for the day to employees not coming to work due to dangerous driving conditions, you’ve been there. It’s time to have a safe and compliant winter season and partner with GMS. Our experts can help you navigate the intricacies of wage and hour laws. Megan Wagner, PHR, GMS’ Client Services Manager, emphasizes, “One of the biggest ways employers can prepare for winter is to develop handbook policies addressing inclement weather. These policies should include details on how employees will be notified if the business closes, whom they should notify if they are unable to make it to work, and who is eligible to work remotely when conditions preclude commuting into the office. You also must consider if your non-exempt employees can work remotely for part of the day, and how a later commute should be noted on their timesheet. Companies are required to comply with FLSA guidelines regardless of weather conditions, so employers need to understand how to manage exempt versus non-exempt time.”