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force PTO usage for company closing before/after holiday Michigan

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  • force PTO usage for company closing before/after holiday Michigan

    Good Morning,

    As a newly hired full-time exempt employee, while reviewing the company policy handbook, in the Holiday section it states:

    "In the event the Company closes a day before or after a holiday, employees may take the day as a Paid Time Off (PTO) day or unpaid day off."

    Closing would be a last minute decision made by the owners. Can the employer enforce that rule? And would it be the same policy for both exempt & non-exempt employees?

    What about in the instance they would close early - for example, at noon Christmas Eve? Can they dock the hours short of an 8-hour day for an exempt employee?

    Thank you

  • DAW
    replied
    A short answer is yes they can. A longer answer is a bit more complicated. Paying people for time actually worked is a function of a federal law called FLSA. That federal law does not care even a little bit about vacation/PTO. So there is basically one federal law for paying people for time worked, then there may or may not be some state law on vacation/PTO. The problem is that most states do not actually have any vacation/PTO laws and those that do have rules which can be summarized as "follow the company policy". The few remaining states with more vigorous vacation/PTO laws do not have the sort of law you are looking for. They could but they do not. So basically all there is specific to your question is the federal FLSA law, which does not care even a little bit about vacation/PTO.

    If we are talking about employees who are both Exempt and also subject to Salaried Basis requirement, then there are legal restrictions on docking the salary (29 CFR 541.602). For this class of employee only, docking is restriced to full days voluntarily not worked or entire workweeks (even if involuntarily not worked). This class of employees only has certain protections for days closed because of holiday. If we are instead talking about non-exempt employee or one of the many other classes of Exempt employees then we are talking no docking restrictions and just rules which base pay on time actually worked. But all the FLSA rules are pay for time worked and have nothing to do with vacation/PTO.

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  • hr for me
    replied
    PTO policies are strictly at the whim of the employer. The law (FLSA) only states what must be paid, but not how. Hourly employees are only required by law to be paid for worked hours. Exempt employees pay can only be deducted for very certain reasons, but their PTO can be deducted to keep their pay whole for hours not worked for any reason.

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