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Allen M., Esq.
Allen M., Esq., Attorney
Category: Legal
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Experience:  Lawyer and legal specialist.
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Can a company schedule a two week shut down regularly

Customer Question

Can a company schedule a two week shut down regularly without compensating their employees? Do they have to make the employee aware of this in advance and at hire?
Submitted: 1 year ago.
Category: Legal
Expert:  Allen M., Esq. replied 1 year ago.

Thank you for trusting your question to JA today. I am a licensed attorney with over a decade of law practice and nearly 20 years of experience in the legal field. I’m happy to be of assistance.

Yes, an employer can shut down their operation for short periods of time. Because it is not an actual lay off, there would be no WARN Act requirement to give prior notice and there is not requirement to tell people about this practice at hire.

For hourly employees, they only have to be paid if they work, so there is no requirement for compensation. For salaried workers, if the worker does any work during a pay week and then is shot out the rest of the week, they still have to be paid the entire week (as their reason for missing wasn't personal to them). However, if the employer is shutting down the office for an entire work week, the salaried employee can do no work during that week and so pay is not required.

Any of these employees can file a claim for unemployment for those weeks, stating "lack of work" as the basis.

If you have any further questions, please let me know. I invite follow up questions, so use REPLY for those. If you have no further questions then good luck going forward and please do not forget to rate my service with a top-three rating so that I receive credit for working with you today. Also, feel free to request me in the future, if you have questions concerning a different matter.

Expert:  Allen M., Esq. replied 1 year ago.

Hello, I wanted to check in and make sure that there was not any additional information that you required.

If you need further assistance, please use REPLY and ask me for any additional information you may need. If not, take care and have a great day.