Working World

For the first time in memory, my company has decided to close the office the day after Christmas and  on Jan. 2 because of the recession. We salaried workers were told that if we wish to be paid for these days, we have to take them as vacation days or floating holidays. Is this legal?  

Whether or not your employer can close for a day or two and not pay your regular salary depends on whether you are an exempt employee.  

Exempt employees are ordinarily executives, administrators and professionals such as doctors and lawyers, or outside salespeople. Being paid a salary does not necessarily mean that an employee is exempt, although most exempt employees are paid a salary. (Some exempt doctors and computer professionals are paid hourly.)

In addition to performing certain duties, an exempt employee must earn at least two times the minimum wage for full-time employment (currently $33,280 a year.) You can find more complete descriptions of exempt categories for your industry at www.dir.ca.gov under the section Industrial Welfare Commission, Wage Orders.

Job titles do not determine whether a worker is exempt, either. It’s the actual job functions that matter most.

If you are a salaried worker but not exempt, then the employer may choose to close for a day and not pay you (except if you wish to use a vacation day or floating holiday).

If you are truly exempt, then the employer must pay you your full salary if it closes for less than a full work week. California law provides that, in general, deductions from an exempt worker’s salary may not be made if the employee performs any work in the work week. The idea is that exempt professionals or executives have to work “overtime” without extra compensation, so they should not be docked when work is light. If the company chose to close for an entire week or two, however, then it would not be required to pay you for those weeks.

Similarly, no deduction may be made from the salary of an exempt employee because of sickness or accident, unless the absence exceeds an entire workweek.  

Amy Semmel is an attorney with the firm of Donfeld, Kelley & Rollman. Her practice emphasizes employment, trade secret and business tort law. The information discussed here is a general explanation of the law, and is not intended to serve as legal advice. Readers requiring legal advice regarding a specific situation should consult an employment attorney.

1 COMMENTS

• Catherine Rhodes

  It is very important to understand your employment status. If you need clarification, speak to your manager.

  Jan 02, 2009