Q: Are NJ and NY Employers Required to Pay Exempt
Employees for Periods of Closure Caused by Hurricane
A: Under the Fair Labor Standards Act, employers
that withhold pay to exempt employees for periods of closure due to natural
disasters or inclement weather risk undermining the employee's exempt status. If an employer does not pay an exempt employee
his salary for that period, the employee might be considered non-exempt,
thereby entitling him/her to overtime pay after the closure period ends, if he/she
works more than 40 hours in a week. Instead, employers can require an employee that
has accrued vacation or personal time to use that time during the closure
period. If your Employee Handbook is not
clear on this point, you should consider updating it.