How to Stay DOL Compliant Despite Inclement Weather Severe weather can disrupt normal business operations and raise immediate payroll questions for employers. Whether it’s snow, ice, flooding, or another emergency, understanding how pay rules apply during weather-related closures is critical for staying compliant with federal wage and hour laws. The answer depends largely on whether an employee is classified as non-exempt or exempt under the Fair Labor Standards Act (FLSA). Non-Exempt Employees: Pay for Time Worked For non-exempt employees (those eligible for overtime), the rule is straightforward. These employees must be paid only for the hours they actually work. If a non-exempt employee does not report to work due to weather conditions, or if the business is closed, the employer is not required to pay for that time. However, employers may choose to allow or require employees to use accrued vacation, PTO, or other paid leave to cover the missed hours. From a compliance standpoint, there is no federal requirement to pay non-exempt employees for time not worked due to weather-related closures. Exempt Employees: Salary Rules Still Apply The rules for exempt employees are more complex. Exempt employees must generally be paid their full salary for any workweek in which they are ready, willing, and able to work. This includes situations where the employer decides to close the business due to weather conditions. If the employer shuts down operations for a day or more, exempt employees must still receive their full weekly salary. However, if the employer remains open and an exempt employee chooses not to report to work due to adverse weather, the Department of Labor considers this a personal absence. In that case, the employer may legally deduct a full day’s pay from the employee’s salary without violating the salary basis rule. Employers may also require exempt employees to use accrued vacation or PTO to cover the full-day absence. What employers cannot do is make partial-day salary deductions. Deductions for less than a full day are not permitted and may jeopardize the employee’s exempt status. Key Compliance Takeaways Here are the practical rules employers should keep in mind: • Non-exempt employees are only paid for hours actually worked. • Exempt employees must be paid if the employer closes. • Full-day salary deductions for exempt employees are allowed only if the business is open and the employee does not report. • Partial-day deductions for exempt employees are not allowed. • Employers may require the use of PTO or vacation where available. Best Practice for Employers From a risk management perspective, the safest approach is to establish a written inclement weather policy that clearly outlines: • When the business will close • How employees will be notified • How pay is handled for both exempt and non-exempt employees • Whether PTO is required or optional Clear policies reduce confusion, prevent disputes, and ensure consistent treatment across your workforce during weather-related disruptions. Why This Matters Improper handling of weather-related pay can expose employers to wage and hour violations, employee complaints, and potential Department of Labor audits. Understanding these rules ahead of time allows payroll and HR teams to respond confidently and stay compliant when emergencies arise. U.S. Department of Labor – Wage and Hour Division (FLSA FAQ) https://www.dol.gov/agencies/whd/fact-sheets/17g-overtime-salary DOL Opinion Letters – Salary Basis Rule https://www.dol.gov/agencies/whd/opinion-letters FLSA Weather Closure Guidance https://www.dol.gov/agencies/whd/fact-sheets/22-flsa-hours-worked Time & Pay's HR Consulting partner, SESCO , recommends that clients review all applicable policy and practices to ensure compliance. For assistance, contact us at 423-764-4127 or by email at sesco@sescomgt.com .

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