Are You On The Hook For Wages If Weather Forces You To Shut Down?
Although Southern California is not exposed to the snowstorms much of the United States faces, we still see our fair share of inclement weather. From extreme drought leading to fires to sudden downpours resulting in mudslides, there are a number of cases in which nature could make conducting business impossible on any given day. If that happens, are you still responsible for paying your employees on a day your business is closed? It depends on the type of employee.
Hourly Employees
You are not required to pay hourly employees for their day at home. They do, however, have the option to use vacation time to secure a paycheck for that day.
Exempt Employees
Unless you already have a policy in place requiring exempt employees to use paid time off or vacation days during a closure caused by weather, you are required to pay their wages for the day you are closed. If, however, you made coming in to work that day optional rather than shutting down entirely and the exempt employee decides to stay home, you are not required to pay him or her.
In most cases, an employee is considered exempt if he or she is paid salary (rather than hourly), makes at least $23,600 a year, and performs exempt job duties. Those duties are broken into three categories: executive, professional, and administrative.
If weather forces your business to shut down, do you have the insurance protection you need to cover the loss of income? What about to repair any damages the weather may cause? Contact Hoffman Brown Company in Sherman Oaks for all of your California commercial insurance needs. Our team of expert agents is dedicated to getting your company the comprehensive coverage it needs. Call us today!
