Pay practices for inclement weather must comply with federal, state and local rules and depend on the classification of the employee.
In general, an exempt employee should earn a full day’s pay if he works any part of the day, such as in the case of an early closure. Exempt employees must also be paid their regular salary if the office is closed but they are “ready, willing and able” to come to work, according to the Federal Fair Labor Standards Act. However, if the office is open and the employee is not able to make it in – due to road conditions, for example – you are not required to pay the employee for that absence.
Non-exempt employees are typically not paid for a snow day, unless they use PTO, as long as they are notified in advance. A few states have laws that require employees to be paid a certain number of hours for the day, even if the office closes early or if the employee is on his way when you decide to close.
Any employees who complete work from home are entitled to pay, whether it’s a full day’s pay for exempt employees or based on the hours worked for non-exempt employees.
Check with your business advisor to find out which laws you may be mandated to follow in the case of an inclement weather closure.