Holiday Shutdowns and Exempt Employees

Many employers are considering giving workers additional unpaid time off during the holidays because of the current economic crisis. The day after Thanksgiving and/or the day after Christmas are in many cases now being included as holidays. Some employers are considering giving employers an entire week between Christmas and New Years.

There are two kinds of employees who are not required to be paid during these holiday closures. One kind is hourly employees, and the other is non-exempt salaried employees.

However, the regulations regarding paying salaried exempt employees are more complex. According to Angela Stone of the SHRM, “if an exempt employee works any portion of a workweek, he or she must be paid for days in which they are ready, willing and able to work.” Stone also indicates that a deduction cannot be made for time when no work is available.

In California, the regulations regarding holiday shutdowns require that employers give notice to employees at least 90 days in advance if they will be required to use vacation or personal time for such closures.