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Forced PTO? Alabama

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  • Forced PTO? Alabama

    I have been unable to find the answer else where; hopefully someone here can point me in the right direction.

    Company A has 70-100 employees.
    Hourly employees work 10 hour days. Salary employees work 8 hour days.

    Company A has decided to close for one day where there are two scheduled holiday days in the week.

    Hourly employees will have worked 20 hours and then receive 16 hours holiday pay. Company A is requiring the employees take 4 hours paid or unpaid vacation.

    Salary employees will have worked 16 hours and then receive 16 hours holiday pay. Company A is requiring these employees to take 8 hours paid or unpaid vacation.

    In some states, this is illegal but I have been unable to find the law for Alabama.

  • #2
    For nonexempt employees, the reason you can't find a law in Alabama is that there isn't one to find. Legally, the nonexempt employees don't have to paid at all. So, yes, the employer can require the employee use 4 hours of vacation pay to stay "whole". However, if the don't have it, legally, it doesn't have to be paid.

    For exempt employees, we have the question of whether any services were performed in the workweek. Sounds like this may be Thanksgiving week? If the workweek corresponds with a full week of closure, the law provides an exception in that exempt employees are not required to be paid at all. So, in that case, the above applies to exempt as well as nonexempt.

    I'm assuming by "salaried", you meant exempt? Did I assume correctly?

    And, BTW, I am not at all certain that this wouldn't be allowed in every state.
    Last edited by Pattymd; 10-21-2008, 11:55 AM.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Originally posted by Pattymd View Post
      I'm assuming by "salaried", you meant exempt? Did I assume correctly?

      And, BTW, I am not at all certain that this wouldn't be allowed in every state.
      You are correct. Thank you for the insight.

      When researching I found that in MN, the employer may charge you vacation, but if you do not have any vacation left they may not deduct pay if the employee is willing and able to work.

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      • #4
        No state will allow you to deduct pay for an exempt employee if there is no vacation available under the circumstances you describe. All states will allow the employer to require exempt employees to use vacation time under these same circumstances.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          Originally posted by cbg View Post
          No state will allow you to deduct pay for an exempt employee if there is no vacation available under the circumstances you describe. All states will allow the employer to require exempt employees to use vacation time under these same circumstances.
          UNLESS the exempt employees did not perform any services for the full workweek.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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