It’s quite the understatement to say that businesses on the Eastern Seaboard are dealing with a lot right now, but it’s true nonetheless. The tragedy and emergency taking place should work to remind practical local HR professionals and business leaders that aside from the standard emergency plan and collection of emergency contacts from your employees there are other details to take into consideration, surrounding the issue of compensation during a a natural disaster or otherwise bad weather.
The Fair Labor Standards Act (FLSA) details that if your organization’s office is closed, non-exempt employees are not legally required to be compensated for their missed opportunity for pay. Of course, your own policy could opt to pay them anyway.
Stated in an older legal update from Bullard Law, exempt employees on the other hand generally must be paid according to their full week’s pay according to their salary if any work has been done. Employers can also require them to utilize their PTO/vacation time to cover those days. Of course, forcing your employees to use their vacation days because roads are not drivable isn’t exactly the nicest thing to do as an employer and would end up in a number of disgruntled employees.
In addition to the general statements in the FLSA there are of course exceptions to the above blanket statements. Non-exempt employees with fluctuating workweeks who perform work at some point during the week still must be compensated, according to a post at Fisher & Phillips. Further, if the office is open and an exempt employee has the opportunity to go to work then they may not be compensated (similar to any other day with regular weather conditions).
However, employers should exercise caution when approaching instances of employees having a dangerous journey to their workplace. If the office is open but an employee has been requested to show up at work despite having an difficult and dangerous journey to their workplace, all kinds of liabilities can pop up.
Ultimately Sandy should remind business leaders to look over their handbook and policies. Do you want to force your employees to take PTO because the office is closed? Do you think it’s fair that your exempt employees are getting paid but your hourly employees aren’t? While we may be fortunate to never experience such a natural disaster these are all issues that deserve acknowledgement in your organization’s handbook come winter.
Additional Resources:
U.S. Department of Labor – Wage and Hour Division
For more information on human resource consulting or employer programs, contact Xenium HR at 503-612-1555 or visit www.xeniumhr.com. This article is intended as information only and is not a substitute for legal advice. Xenium HR is a professional employer organization specializing in strategic HR partnership with small and mid-sized businesses in Portland, Oregon.
FLSA, Bad Weather, and Your Policies
