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Compensation  >>   Exempt Furloughs during holiday workweek Search Discussion Posts
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Exempt Furloughs during holiday workweek  
Posted: 09/30/2009 08:51am   65 Views

We have introduced furloughs this year, and have made sure that exempt employees haven  taken a full week unpaid without doing any company work to avoid legal issues regarding the definition of a salaried employee. Our company is considering  3 days off during a workweek where we have 2 paid holidays. This would impact both non-exempts and exempts.      Although exempts would not be working that workweek, they are receiving two paid days.  I am not concerned about unemployment benefits, I am concerned regarding the legality of implementing .

Has any one dealt with this issue yet and know the legal interpretation?  I have searched the internet and gotten close, but not exactly the answer on this topic. Thanks - Cathy


Exempt Furloughs during holiday workweek  
Posted: 09/30/2009 09:23am  

Could you please state your legal concern. Is it paying exempt people for getting two days of pay in which they didn't receive any other pay?


Exempt Furloughs during holiday workweek  
Posted: 09/30/2009 09:31am  

As far as I know, in general, absent any labor contract requirement or local regulation to the contrary, you don't have to pay anyone anything for a day when they don't work.  If you want a legal opinion, you consult a local labor attorney rather than surf the net, even here.  It may cost something, but even a "gut feel" from a true expert is probably worth $25, as the joke goes.


Exempt Furloughs during holiday workweek  
Posted: 09/30/2009 09:59am  

Your concern I believe is that, by paying the exempt employees two days of  holiday pay, in a furlough week, you must pay them their full salary for the whole week. I don't think you have to since they didn't actually perform work in that week. See this reference below from the FLSA: "an exempt employee must receive the full salary for any week in which the
employee performs any work without regard to the number of days or hours worked. ("http://www.dol.gov/dol/allcfr/esa/title_29/part_541/29CFR541.602.htm).

However, I would run it past the local DOL office to be on the safe side.  Pls let us know what they say. State labor laws may also apply.



Exempt Furloughs during holiday workweek  
Posted: 09/30/2009 08:10pm  

It depends on your state labor laws.  In the past, California exempt employees had to be paid for a full work week even if they just worked one hour due to protect their exemption status.  However, the California DLSE just recently issued an opinion letter reversing their earlier stand; however, it is a sticky arena for California employers.

On August 19, 2009, the California Division of Labor Standards Enforcement (DLSE) issued an opinion letter confirming that under California law, as with the federal Fair Labor Standards Act (FLSA), salary reductions which accompany reductions in hours does not jeopardize employees’ exempt status.  

I blogged on this topic:


It doesn't appear that you are in California but I would check with you state labor board...

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