Hurricane Petunia is barreling down the coast. The weather report features the pending “Snowpocalypse”. Whatever the weather, your nonprofit will need to cope with related closures at some point. Many nonprofit organizers question whether they are required to pay employees if Mother Nature forces closure for the day.
Salaried versus Hourly Employees
Under federal law, salaried, exempt employees who worked part of the workweek cannot have pay docked because of weather-related closures. Nonexempt or hourly employees do not have to be paid.
Some employers wonder whether they can ask exempt employees to take personal, vacation, or telecommute days during inclement weather closures. In fact, these are legal alternatives when the office is closed.
Your best course of action is to make your policy crystal clear. Confirm that it doesn’t violate federal or local laws. Put it in writing in each employee manual and ensure that employees know about policies well in advance. You avoid bad feelings, confusion, and problems when you have policies spelled out in advance.
Consider a Generous Inclement Weather Policy
Regulations aside, should you still pay nonexempt staff when you close the office or refrain from docking vacation or personal days for exempt staff? It is probably the fair thing to do. Let’s face it: weather-related closures rarely happen. Is it really worth the bad feelings if employees can’t work because the office is closed?
Even if you think you can open the office because some people live close by, is it a wise decision? You don’t want employees getting injured on their way to work as a result of traffic accidents or other problems from inclement weather. No one wants that, and asking people to stay home is the fair thing to do. Of course, depending on the work you do, many employees will be able to work from home and remain productive, as long as the weather hasn’t knocked out the power. For many modern nonprofits, this may be the most reasonable solution.
Keep in mind that state rules may require you to pay nonexempt employees in situations in which federal rules don’t. To ensure that you don’t inadvertently violate any federal or state rules, it’s a good idea to consult with a qualified payroll or accounting professional before docking anyone’s pay or personal time.
Yes, it may be costly to pay people even when you don’t legally have to, but in the long run, a happy workforce is a productive workforce. Paying your nonprofit staff and allowing them to keep their vacation days when you’re forced to shut down because of weather issues may be the best solution.
Do you want to know more ways to navigate these complicated payroll issues as a nonprofit organization?
To learn more about how our firm can serve your nonprofit organization, don’t hesitate to contact Kathy Corcoran at (302) 254-8240.
©2024
