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In any season, severe weather can disrupt business operations. But during winter months, inclement weather pay policies are especially critical to maintaining compliance, ensuring employee morale and keeping your business prepared for unexpected closures or reduced hours.
Here’s what you need to know about handling pay during extreme winter weather events.
From a culture and compliance standpoint, how you handle inclement weather pay can significantly impact your workforce.
When determining how to handle inclement weather pay, it’s essential to understand the classification of your employees under the Fair Labor Standards Act (FLSA):
These employees are typically hourly workers who earn less than $684 per week and are eligible for overtime pay.
These are salaried employees who are exempt from overtime pay requirements under the FLSA. To qualify, they must perform executive, professional or administrative duties and earn at least $684 per week. Exempt employees are compensated on a salary basis, meaning they typically receive the same pay regardless of the number of hours worked, as long as they perform some work during the week.
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Once you know how your workforce is classified, here’s how to handle pay during weather-related disruptions:
While the FLSA governs inclement weather pay in most states, some states have additional requirements. For example, certain states mandate minimum pay when an employee reports to work but is sent home due to weather-related closures.
It's essential to understand your state’s specific regulations, as they may differ from federal guidelines and impact how you compensate employees during severe weather events.
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Employees may appreciate the option of choosing to use vacation time or paid time off if the weather unexpectedly closes your office and they can’t work. Your company also may require that unworked hours be deducted from workers’ accrued PTO accounts.
While this is legal, if your office has closed for weather in the past and you have not required employees to use paid time off during the closure, it would be best not to implement that practice without advising your employees first.
Your policy for allowing or requiring employees to use PTO or vacation time to be paid for unworked hours during a closure should be clearly stated so employees know what to expect.
It’s critical your company includes an inclement-weather pay policy in your employee handbook. The policy should explain:
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Navigating the complexities of inclement weather pay doesn’t have to be daunting. At Axcet HR Solutions, we specialize in helping businesses create compliant, employee-friendly policies tailored to their needs.
With over three decades of experience serving businesses nationwide and locally in Kansas City, our team of HR and compliance experts is here to ensure you’re prepared for every weather event.
Don’t let winter storms catch you off guard—contact us today to develop or update your inclement weather pay policy and keep your team secure and informed. Schedule a consultation today.
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