Snow Days & Staffing Decisions: Who Gets Paid and What Changes Next

Do I have to pay my employees if we close our practice due to the weather?

Question: Snowpocalypse got us here in Tennessee. The roads are still unsafe to drive on, and patients are cancelling. If we close our practice until conditions improve (it could be a few days), do we have to pay our employees?

The Legal Side: The answer depends on employee classification and state law.

Under federal wage and hour rules, non-exempt (hourly) employees are generally only required to be paid for hours actually worked, as long as they are notified of a closure before reporting to work. Some states also impose reporting time or show-up pay requirements if employees arrive and are then sent home. Therefore, paid time off may be optional or required depending on your policy and state law.

Exempt employees (managers) typically receive their full salary for any closure lasting less than a full workweek, provided they are ready, willing, and able to work. 

Timing, remote work, PTO balances, and state-specific rules can all affect compliance, so the details matter.

If your practice must remain open due to the nature of your services, or at least needs to meet patients in crisis, finding a way to ensure workers’ safety during travel, including on-campus housing or a nearby hotel, may be your best option. These types of scenarios typically require separate policies that are communicated well in advance.

We have a very well-written, plain English article that walks through multiple scenarios in detail, including PTO use, late openings, early closures, and state-specific requirements. If you are facing weather-related closures, we strongly recommend reviewing it here: Who Gets Paid When Your Office Closes Due to Disasters or Inclement Weather?

The Human Side: Weather-related closures do not just affect operations. They affect people. Many employees rely on consistent full-time hours to make ends meet, and unexpected pay reductions can create real financial strain. At the same time, no employee should feel pressured to risk their safety just to get to work.

Clear communication and thoughtful planning can help you balance business needs and costs with compassion. We explore these considerations in more detail in our full explainer.
For a complete breakdown of pay rules, PTO options, late openings, early closures, and state law considerations, read Who Gets Paid When Your Office Closes Due to Disasters or Inclement Weather.

If you are unsure and a member, please log in to backstageHR and send us your question via the HR Request or give us a call. If you are not a member, we have already started a thread in our Facebook group, HR Basecamp, of over 10,000 medical owners and managers. You can join for free and post your questions there.  

Any issues switching salaried employees to hourly at same pay?

Question:I want all of my employees to track their hours, so I am considering changing the handful of salaried employees I have to hourly. They’ll be paid the same amount. Any issues with this?

The Legal Side: This question sets off internal alarm bells for us because we regularly see practices misunderstand what “salary” actually means. About 2 in 10 practices we talk to have been using the word salary to describe pay, when what they are really doing is skipping time tracking and overtime analysis. Your use of the word “handful” also suggests we should slow down and make sure these roles are properly classified.

Here is the key issue. If you have been paying employees a salary and you are not tracking their time, that usually means you have decided they are exempt from overtime. That is a big decision, and it is not something employers can make casually. It is also important to note that paying someone a salary does not automatically exempt them from overtime. You can pay a non-exempt employee a fixed salary, but they are still legally entitled to overtime if they work overtime, which means you still have to track their hours.

The federal government recognizes this as a non-exempt salaried arrangement. It is essentially an hourly employee paid a fixed amount each pay period. Some practices use it when their schedule is very predictable, and it is determined that employees will not work more than 40 hours in a week. Even then, you are still required to have employees track their time and keep those records. Your question suggests that time is not currently being tracked, which is why we are concerned you may be opening a Pandora’s box. To answer your question directly, yes, there can be problems if the roles have not been properly classified and documented.

In most health care-related businesses with fewer than 50 employees, there are not usually a handful of positions that can legitimately be classified as exempt.

First, it is critical to distinguish between two concepts that are often conflated. Salary vs hourly describes how someone is paid. Exempt vs. non-exempt determines whether overtime rules apply. We break this down more deeply here: Exempt Employee Status: It’s NOT Just Salary vs. Hourly.

For the purpose of this exercise, we want you to forget that the word salary exists.

Determining whether a role can be exempt is a separate legal analysis, and it requires applying federal tests from the Department of Labor. Those tests are detailed and role-specific, and this is where employers often get tripped up over time. Misclassification is common and usually accidental.

If employees who are currently treated as exempt are switched to hourly, that can raise questions about whether they were properly classified in the first place. In some situations, it can bring attention to potential misclassification and lead to claims for unpaid overtime.
On the other hand, if employees are actually non-exempt but have been paid on a salary basis, they should already have been tracking their hours and receiving overtime when applicable. If that has not been happening, it is a compliance issue regardless of whether you switch them to hourly now.

Before moving forward, it is important to review each role carefully and do so privately. If questions arise, an HR expert such as the team at CEDR can help you confirm classifications, assess risk, and build a thoughtful plan for any needed changes. In more serious situations, that plan may also include how to address past misclassification and potential back pay exposure.

CEDR’s Wage Compliance Guide is a great resource to help you evaluate each position correctly.

The Human Side: If you were talking this through with our Solution Center, the first question we would ask is why now. Is this about accountability, attendance, productivity, or simply wanting better visibility into hours worked? The reason matters. If it is unclear, this change may not actually solve the underlying issue.

From the employee’s perspective, being moved from salary to hourly can feel like a demotion even if pay stays the same. That perception can affect morale if it is not handled carefully. Anytime you change how employees are paid, clear communication is essential. Explain the business reason, what is not changing, and what expectations look like going forward.

Bottom line. Confirm the classifications first, then think through the message and the impact. Practice what you want to say before you roll it out.

Moving employees to part-time: how do I handle benefits, PTO, and communication?

Question: Business levels are down, and I need to move a couple of employees to part-time. How do I handle benefits and PTO, and what is the best way to communicate this change?

The Legal Side: Start by reviewing how paid time off will be handled for employees whose status is changing.

For vacation or PTO, the best practice is to allow employees to keep any unused balances. You may let them continue using that time as normal or pay it out when their status changes. In some states, unused vacation is considered earned wages and cannot be forfeited. In those cases, it must be paid out regardless of whether the employee moves to part-time status, resigns, or is laid off.

State-mandated sick leave works differently. Sick leave balances should generally remain intact, and part-time employees must usually continue accruing sick time as required by law. While accrual continues, many state laws allow unused sick time to be forfeited when an employee leaves, provided your policy is structured correctly.

Other benefits, such as health insurance, retirement plans, and bonus eligibility, are often more straightforward. If your benefit plans limit eligibility to full-time employees, coverage typically ends at the close of the month in which the status change occurs. One important exception is state-run retirement programs, which are governed by state law rather than employer policy.

Even when downsizing is driven by business necessity, it is critical to evaluate which roles are affected carefully and to document the business reasons behind those decisions. Because benefit and wage rules vary by state, reviewing applicable laws before making changes is essential. CEDR members can reach out to us directly for guidance, and we strongly encourage all employers to consult an HR expert to avoid costly compliance mistakes.

The Human Side: First, we are genuinely sorry you are facing this. Having to reduce hours or benefits is one of the hardest parts of running a business.

From an employee’s perspective, this is a major change. Losing hours or benefits can create immediate financial stress and may push some employees to start looking elsewhere. Before finalizing your plan, step back and consider whether this reduction is expected to be temporary or long-term.

If the situation is temporary, you may want to explore whether you can reduce hours without reducing benefits for a limited period of time. While this is not always possible, it can help preserve trust and retention during a downturn.

How you communicate this change matters just as much as the decision itself. Meet with each affected employee individually. Be clear about the business reasons behind the change and exactly what is changing and what is not. Avoid overpromising, but if there is a possibility of returning to full-time status in the future, it is appropriate to acknowledge that.

CEDR provides members with a Change of Status Notice designed specifically for situations like this. After individual conversations, providing a written summary helps ensure consistency, provides employees with a reference point for later, and may be legally required in some states.

Be prepared for strong reactions, including the possibility that some employees may choose to leave. Clarity, transparency, and compassion go a long way in helping employees process a difficult transition while maintaining trust in leadership.

Downsizing entails legal, cultural, and operational risks. This is one of the reasons CEDR exists. Our HR experts can help you think through your options, provide the right documentation, and identify a path forward that balances business realities with compassion for your team.