Pay for exempt employees for business closing
sherrymiller
8 Posts
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?
Comments
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)].