What options exist for paying employees when a hurricane forces an employer to close?
- Non-exempt employees must be compensated only for hours actually worked. If the employer cannot, or does not provide work to those employees due to a natural disaster, it is not required to compensate them for hours not worked. An exception to this general rule exists where there are employees who receive fixed salaries for fluctuating workweeks. These are non-exempt employees who have agreed to work an unspecified number of hours for a specified salary. An employer must pay these employees their full weekly salary for any week in which any work was performed.
- As for other exempt employees, if they choose not to come to work due to transportation difficulties or other storm issues, but the employer is open for business, the employer may require the employee to use paid time off or vacation pay, or may choose to place the employee on unpaid leave. Any required use of PTO should be in full day increments., if the employee worked a partial day, then the exempt employee is entitled to full pay for that day.
- The employer will be required to pay an exempt employee’s full salary if the worksite is closed or unable to reopen for less than the complete work week due to storm reasons. When the facility is closed for more than a complete work week, the employer is not required to pay exempt employees for any complete work week closure caused by the storm related closure.
It is also possible to require exempt employees to make up time missed. Issues regarding compensation are fact driven. Employers should consult with their employment attorney for specific advice.
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