Compliance Stuff

  When winter storms strike, businesses often face the challenging decision of whether to shut down operations to ensure the safety of their employees—bringing a host of wage and hour issues to the forefront. During unexpected closures, employers face considerations such as whether employees are entitled to be paid under the Fair Labor Standards Act (FLSA) . Here’s an overview of some of employers’ basic legal obligations during work disruptions caused by the weather. Quick Hits Generally, under the FLSA, employers must pay exempt employees their guaranteed salary during business closures caused by inclement weather, as deductions for employer-caused absences are not permitted . Employers are typically required to pay nonexempt employees for all hours worked, but if they cannot work remotely due to the nature of their jobs during a weather-related closure, employers are not required to pay them. Connectivity problems during inclement weather affect wage and hour obligations similar...

  As they say, an ounce of prevention is worth a pound of cure.  In that spirit, what follows are certain pay and leave issues employers may confront during times of natural disaster – all of which are better to be thought about ahead of time, to the extent possible, instead of "at the moment" once a natural disaster strikes.  Pay Issues Non-Exempt Employees The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees only for hours actually worked .  Non-exempt employees typically (although not always) are paid an hourly rate for their work.  Therefore, in those situations, non-exempt employees do not have to be paid for any hours that they do not work, whether or not due to the natural disaster.  However, if a non-exempt employee is instead provided with a guaranteed salary, the employee must be paid their full weekly salary for any week during which  ANY  work is performed for the employer (with a few limited exceptions ty...