July 24th An unpaid vacation day for exempt employees
in the payroll
a question: We are considering closing the office the day before an upcoming holiday, giving employees unpaid leave. How will this work for our exempt employees?
Answer: The Fair Labor Standards Act generally requires this Exempt employees– Employees who are exempt from overtime requirements by law – are paid their regular wages regardless of the number of hours they work in a work week. If exempt employees are otherwise working the week off, you cannot designate it as an unpaid day for them.
As with non-exempt employees, you Can Requiring exempt employees to use accumulated leave or paid time off (PTO) to cover the shutdown. However, exempt employees who do not have accrued leave or PTO available to cover the day off during the shutdown must still be paid unless they any work during the work week. If you intend to request the use of a PTO or vacation to cover the closing, you should make this clear in your handbook or policies so that employees know what to expect.
original content by Human Resources Support Center. This information is provided on the basis that Payroll Partners does not provide legal, human or other professional advice or services. Professional advice on specific issues should be sought from an attorney, HR consultant or other professional.
