What must I pay employees during a holiday shutdown?

If employers choose to close their offices for several days — such as the business week between Christmas and New Year’s Day — holiday shutdowns affect wages differently for exempt and nonexempt employees. Nonexempt employees don’t receive pay for any day they do not work, but exempt employees must be paid for any week in which they perform any work.

Many businesses will close for a full workweek (generally 12:01 a.m. Sunday through midnight the following Saturday). But depending on the holidays' timing and the duration of the shutdown, employers may owe exempt employees a full week’s wages for only a partial week of work.