In This Issue

So,You Work For a Jerk...

So, You Work For a Jerk -

6 Things You Can Do &
1 Thing You Shouldn't

(Part 2 of a 2 part series)

Sheila Grosdidier, BS, RVT

Nothing compares to having a wonderful boss at work. But when that isn't possible, it is time for the employee to take control of his/her life.
Read More...

VMC School of Veterinary Practice Managment

Our Next Session is scheduled for
April 21 - 25, 2008
Attendance is limited.

Click for More Information

Upcoming Seminars

It's What's Up Front That Counts... And More!

2/3 - Madison, WI
2/24 - Los Angeles, CA
3/9 - Atlanta, GA
3/30 - Houston, TX
4/13 - Seattle, WA
4/27 - Salt Lake City, UT
5/4 - Minneapolis, MN
5/18 - Baltimore, MD
6/22 - Denver, CO

Smart Moves For Technicians

1/27 - Dallas, TX
3/9 - Vienna, VA
4/6 - Toronto, Ontario
6/1 - New Orleans, LA
6/29 - Chicago, IL

Principles of Veterinary Practice Management

2/24 - Raleigh, NC
5/14 - San Antonio, TX
6/17 - Detroit Area, MI

HR Boot Camp

Feb 27-28 - Orlando, FL
Mar 12-13 - Bay Area, CA

The monthly Financial Tip and QuickBooks Tip are courtesy of Burzenski & Company, P.C., Certified Public Accountants and Financial Consultants.

Gary I. Glassman, CPA, is a partner in the firm. Melody Mann Fox is the Director of Client Services, specializing in Veterinary Medicine.

Burzenski & Company, P.C.

To Contact Us:

VMC, Inc.
30792 Southview Dr
Suite 200
Evergreen, CO 80439

Phone:
303-674-8169

Fax:
303-670-3899

email:
vmc@vmc-inc.com

Website:
www.vmc-inc.com

  News from VMC, Inc.

Inclement Weather Policy

by Sheila Grosdidier, BS, RVT

Hurricanes are hitting in Florida, there's a fire in California, a tornado in Kansas, ice on the streets of Iowa and 16 inches of snow is falling on the east coast. Is there any practice that is immune from the affects of weather on employees' ability to get to work? If weather does not affect you, what about power outages or other unpredictable situations? How prepared is your practice? Do you know the proper way to pay employees if you close for the day or the employee cannot come in or chooses not to come in?

There are several issues that practice owners need to be aware of regarding pay for employees when the clinic is closed. The Federal Department of Labor Fair Labor Standards Act is the primary resource when employers are determining how to pay exempt and non-exempt employees. In some states there are regulations that override the FLSA because they have more stringent regulations. Be sure to check with your state whenever you are unsure about how to pay your employees.

Department of Labor opinion letters provide guidance for employers to follow in paying exempt employees during periods of inclement weather. Below is some information excerpted from one of the opinion letters:

This is in response to your request for an opinion concerning the application of the Fair Labor Standards Act (FLSA) to leave taken by exempt employees, or leave directed by the employer, during situations where inclement weather occurs (such as heavy snow or other types of disasters). You present three questions for which our responses follow:

Question: During office closures due to inclement weather or other disasters, may a private employer direct exempt staff to take vacation (or leave bank deductions) or leave without pay without jeopardizing the employees' exempt status?

Answer: The FLSA does not require employer-provided vacation time. Where an employer has proposed a bona fide benefits plan, it is permissible to substitute or reduce the accrued leave in the plan for the time an employee is absent from work, even if it is less than a full day, without affecting the salary basis of payment, if the employee still receives in payment an amount equal to the employee's guaranteed salary. However, an employee will not be considered to be paid "on a salary basis" if deductions from the predetermined compensation are made for absences occasioned by the employer or by the operating requirements of the business. Thus, if the employer closes the office due to inclement weather or other disasters for less than a full workweek, the employer must pay the employee's full salary even if: (1) the employer does not have a bona fide benefits plan; (2) the employee has no accrued benefits in the leave bank; (3) the employee has limited accrued leave benefits and reducing that accrued leave will result in a negative balance; or (4) the employee already has a negative balance in the accrued leave bank.

Since employers are not required under the FLSA to provide any vacation time to employees, there is no prohibition on an employer giving vacation time and later requiring that such vacation time be taken on a specific day(s). Therefore, a private employer may direct exempt staff to take vacation or debit their leave bank account in the situation presented above, whether for a full or partial day's absence, provided the employees receive in payment an amount equal to their guaranteed salary. In the same scenario, an exempt employee who has no accrued benefits in the leave bank account or has a negative balance in the leave bank account still must receive the employee's guaranteed salary for any absence(s) occasioned by the employer or the operating requirements of the business.

Question: If the private employer's offices remain open during inclement weather or other types of disaster, can exempt staff be directed to take vacation (or leave deductions) or leave without pay if they fail to report to work without jeopardizing the employees' exempt status?

Answer: As stated earlier, either leave bank or salary deductions may be made when the employee is absent from work for a day or more for personal reasons, other than sickness or accident. Thus, if an employee is absent for one or more full days for personal reasons, the employee's salaried status will not be affected if deductions are made from the employee's salary for such absences. An absence due to inclement weather does not constitute an absence due to sickness or accident. Therefore, an employee who is absent due to inclement weather, such as because of transportation difficulties, is absent for personal reasons. In the situation described above, a private employer may require an exempt employee who fails to report to work to take vacation or make leave bank deductions without jeopardizing the employee's exempt status. When the office is open, an exempt employee who has no accrued benefits in the leave bank account does not have to be paid (i.e., may be placed on leave without pay) for the full day(s) s/he fails to report to work due to such circumstances as a heavy snow day.

Question: If the private employer's employees are probationary or have used all of their accrued vacation (or leave bank) time, can the employer choose not to pay them for time not worked without jeopardizing the employee's exempt status? When asked to clarify, you stated that in this example an exempt employee chooses to stay home for a half day due to inclement weather.

Answer: Deductions from salary for less than a full day's absence are not permitted under the regulations. Therefore, where the employee's absence is for less than a full day, payment of an amount equal to the employee's guaranteed salary must be made even if the employee has no accrued vacation or other leave benefits. However, as stated in response to question #2, a deduction from an employee's leave bank or salary may be made.

To see the full opinion letter go the this link: http://www.dol.gov/esa/whd/opinion/FLSA/2005/2005_10_24_41_FLSA.htm

Non-exempt employees are treated differently in these situations than exempt employees. The department of labor requires non-exempt employees to be paid minimum wage and overtime for all hours worked. If the employee does not work, whether due to the employer's decision to close or the employee's inability to get to work, the Department of Labor does not require the employer to pay the employee. It is then up to the clinic to determine, based on their policies, whether the employee is eligible to use accrued but unused vacation days or Paid Time Off or if the day(s) off will be unpaid.

To summarize, exempt employees must be paid their salary (it may include vacation or Paid Time Off) if the clinic is closed. "However, an employer that remains open for business during a weather emergency may lawfully deduct one full-day's absence from the salary of an exempt employee who does not report for work for the day due to the adverse weather conditions. Such a deduction will not violate the salary basis rule or otherwise affect the employee's exempt status. Please note, however, that deductions from salary for less than a full-day's absence are not permitted for such reasons."

Now is the time to create or update your policy regarding inclement weather or hospital closing. Below is an example of a policy that can be adapted for your practice. Remember, an employer may not make partial-day deductions from exempt employee pay for less than a full day absence regardless of whether the employee has any accrued leave.

Emergency Closing Policy
Although the company will make every effort to remain open for business on scheduled workdays, there may be instances where conditions make it impossible to do so. These include, but are not limited to, severe weather, declared state of emergency, utility disruptions and natural disasters. In all cases employee safety will be the primary consideration.

1. In the event of a company-designated closure, emergency contact information will be used to notify employees who are not at work at the time a decision is made.

2. If the clinic's offices are open, employees are expected to report to work on time as scheduled. Employees who fail to report to work will be considered to be out for personal reasons. Nonexempt employees will be granted unpaid leave for the first occurrence unless an employee has accrued vacation or PTO leave to use at that time. Subsequent occurrences may subject the employee to consequences under the company's attendance policy. Exempt employees who fail to report to work will also be considered to be out for personal reasons. Exempt employees will be granted unpaid leave for the day if no work is performed. However, if the exempt employee has accrued vacation or PTO leave then that will be used to cover their absence for the day.

3. If there is a declared state of emergency or the owner determines that conditions prevent employees from being able to travel to work on a particular day, then the clinic will be closed.

4. Non-exempt, hourly employees will not be paid their regular pay for days of emergency closure. They will be considered on unpaid leave unless an employee has accrued vacation or PTO leave they wish to use at that time.

5. Exempt employees will be paid their normal weekly salary for any workweek in which any work is performed less any deductions for full days not worked where no vacation or PTO leave is available. However, if a full week passes where no work is performed, such individuals will be deemed to be on unpaid leave unless their PTO/vacation benefits are available.

6. In the event of a partial day closure exempt employees will be paid their normal pay for the day through salary or accrued PTO or vacation (if available). Non-exempt employees will not be paid for hours they do not work. They may use accrued PTO or vacation if available.

7. Employees who are late or who choose not to report to work when the office is otherwise open will be subject to the provisions of the attendance/tardiness policy.