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Home » Practice Management

 

Should Medical Practice Staff Get Paid When the Office is Closed?

By Melissa Young, MD | April 16, 2012

Time is money. And in a business where one of your commodities is time, that is even more true. So the question then is: If a medical office is closed, and therefore, not generating income, should staff members be paid?

I will tell you how I answered this question, and I will tell you that the answer has evolved over time. When I first opened the office, and it was just my secretary and I, and even when I had hired the medical assistant, I told them up front, the office would be closed on major and some minor holidays, and they would not be paid. I had no intention (or ability) to go on vacation, so that was not an issue. There were, however, emergency closings due to weather, and I decided on a case-to-case basis on whether they would be paid or not. If I took time off to go to the medical school, I had them come in and man the phones, so naturally they got paid.

(MORE: Balancing Bureaucracy and Patient Care as a Physician)

With growth of the practice and the addition of a new physician, it has become economically feasible for me to pay the staff their usual salary if a major holiday lands on a weekday and we are closed. My kids are a little older now, and it is easier to make arrangements for them if school is closed for a minor holiday, so we tend to be open those days, or either I or my associate will be out, but the other will be in, so the office is kept open. We have been fortunate this past winter and have not needed to close due to weather.

I think that being able to pay the staff especially around the holidays, really makes a difference in morale. Isn’t that when people really need the money? And since another one of our commodities is service, happy employees make happy patients.

Find out more about Melissa Young and our other Practice Notes bloggers.

 

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by Laurie Morgan | August 02, 2012 12:35 PM EDT

Christina, I agree with you -- I haven't heard of any state that requires paid holidays, or pay when the office is closed due to weather or other unpredictable issue. We don't even have that here in California! :). But I also agree that it's a nice idea to offer some paid leave if you can afford it. Staff are paid relatively low wages in most practices, and some income predictability would go a long way in terms of morale. (On the flip side, the stress of not being able to make rent because the office was closed for a snow storm or because a holiday cut their pay can be a big distraction for your employees -- and impact patient service.) Better to invest in paid holidays than, for example, overtime. Turnover is costly, too -- investing a bit in paid time off can help reduce turnover over the long haul. You could make paid leave something you earn, though -- after a probation period for new employees, for example -- since the idea is to be able to hang on to your best employees.

Laurie Morgan
Capko & Company

by Christine Byrnes | April 17, 2012 11:10 AM EDT

To Lisa: I don't know what state you are in but I would imagine your states laws vary a lot from the norm. Most states require two things: time and half over 40 hours for non managerial employees and breaks. Sick time, vacation time, paid holiday etc are not mandatory. Honestly, I didn't think that was the case anywhere in the US so I am surprised to hear it is. While you must give your employees off to observe a religious holiday, pay is not required.

That being said, I think it is a good policy to pay employees for holidays, sick and vacation time as good morale leads to a good attitude which leads to better patient care.

by Lisa Mitchell | April 17, 2012 10:48 AM EDT

Laws vary from state to state and it may not always be your choice whether or not to pay your staff--you may legally be required to do so. Most full time employees must be paid for holidays. Weather closings are a little trickier in the criteria. If public transportation is running and the employee could access it to get to work, then he or she is not to be paid if s/he doesn't show up for work. However, if you close the office because of bad weather, you must pay your employees, regardless of wheather or not they would have shown up.

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