July 3rd - extra day off - unpaid

nannerh

Because so many employees want to take vacation on July 3rd we are considering closing down for the day. We are thinking about allowing the hourly employees to take a vacation day or take it unpaid, and the salaried employees can use a vacation day or make up the hours later. Is there anything wrong with this? Are there any unemployment issues? Other considerations?

HRCalico

You're fine on the hourly employees, but I don't think you're right about the exempt ones.

We had this discussion a while back, but it was regarding snow days, and closing the workplace due to weather. This is from the Nebraska Law Letter - If the workplace closure is your decision, the Fair Labor Standards Act requires you to fully compensate any exempt employee who is ready and able to work. (that's not just NE law)

I don't know that the DOL looks differently on you if you just decide to close - I wouldn't chance it with the exempt employees. We are looking at having a 4 days off for Memorial weekend, and I believe we will pay the salaried people their full salary for the week even if they get that day off.

LarryC

I agree with Lenetta. If you close the plant, the exempt EE's get paid. Here in the Land of 10,000 Lakes and One Way to Get to Them, the roads will be chaos for those who have to load up the boat and come home for one day and then head back up that night. We'll be open, by the way.

Lenetta, the Twins are floundering.

DianeZ

We're a manufacturing company in northern Wisconsin. We are also opened on Monday the 3rd, and then closed on the 4th. As I expected, we are getting many vacation requests for the 3rd off. We'll see what happens - but at this time, the plan is to stay open! Personally, I'm off for the week! Can't wait!

LindaS

Diane -

Where in Northern WI? I am in Merrill.

davids

I have dealt with similar issues, mostly related to snow days. The advice we received from DOL is that although the FLSA-exempt employee cannot suffer a reduction in wages, you MAY require the employee to use vacation leave or other paid leave that your company provides. By using vacation leave, the employee is not suffering a loss in wages. However, if any employee does not have vacation time (new employee or an employee who used all of his/her time), you would have to pay the employee full salary for the week.

The issue you may face is the dissatisfaction of employees who are required to use leave time, while the employee who has abused leave and has no time available, gets paid for the day. This is just an employee relations issue to be aware of.

E Wart

I agree with David. (By the way, 7/3 is one of our "extra holidays" so we will be closed. However, if you actually "lock the doors", you can charge exempt employees for whatever time off they have. However, if they don't have any, you can't dock them. Hourly employees, no brainer. However, if you close for several days and hourly employees aren't paid, they are times when they could apply for unemployment. However, one day isn't it.
E Wart

NaeNae55

We will probably handle July 3rd the way we do the day after Thanksgiving. A few weeks before the event we take a vote. If EVERY employee votes to use their PTO on that day, we will close the office and let everyone take PTO. If even one employee votes no, the office stays open with a skeleton crew.


Good luck!

Nae

Golf

We close the entire week ---- do exempt employees still get paid or can it be vacation or time off w/o pay?