It seems that natural disasters and severe weather events are constantly in the news. But when they happen in your own backyard, the impact on your business and your employees can be costly.
Fortunately for the vast majority of businesses in America, relatively few are directly impacted by severe weather disasters or other life and property threatening natural events. But no business owner is exempt from the possibility, and every employer has obligations during such events.
Being Ready to Respond When Disaster Strikes
There are a number of issues to consider when an event occurs that requires an employer to close their businesses and for resuming normal operations. Employees, for example will want to know how and if they will be paid. This means that employers must understand if a forced business closure requires paying employees who cannot come to work.
In addition, there are questions concerning obligations for unemployment compensation and, if employees are injured as a result of disaster-related events, whether they will be eligible for workers' compensation.
Probably the first and foremost issue facing employers during any length of business closure is employee compensation. And this is determined by the worker's status as either a nonexempt or exempt employee.
According to the Fair Labor Standards Act (FLSA) employers are required to pay their nonexempt workers only for the hours they have actually worked. This means that an employer is not legally required to pay those employees if no work can be provided to those employees because of a natural disaster.
Employees who receive fixed salaries for fluctuating workweeks provide an exception to this general rule. In other words, employers must pay these employees their full weekly fixed salary for any week in which any work was performed.
Exempt employees, on the other hand, employers are required to pay those employees their full salary if the business is closed due to severe weather or other disasters for less than a full workweek. An employer can, however, require those exempt employees to use any allowed leave for this non-working time.
According to the U.S. Department of Labor (DOL) if an employee chooses to not come to work because of the weather, or experiences transportation difficulties due to a weather emergency, this is considered a work absence if the place of business is open. Consequently, the employer can place the exempt employee on leave without pay for the full day of week missed. As an alternative, the employer can require the employee to use any available vacation time.
Because of the extenuating circumstances in these situations, many employers might be hesitant to withhold an exempt worker's pay. As a result, many employers will require employees to "make up" lost time after they return to work instead. This is permissible for exempt employees, however, this option is not allowed for nonexempt employees, since they must be paid overtime for all hours worked over 40 in a work week.
Other Work Related Issues
Under the FLSA, an employee who is required to remain on-call at the employer's premises or close by while the office is closed due to a weather emergency must be paid for that time. Employers are not, however, required to pay employees who are at home and "standing by" but able to use the time for their own purposes. In addition, some states impose different or more stringent requirements for on-call time.
Another consideration is time spent by workers at an office or workplace waiting to begin work. Waiting time must be paid when, for example, workers are at work but must wait for the power to restart. This is still considered time worked.
Employees with a serious health condition caused by a natural disaster are entitled to leave time under the Family and Medical Leave Act (FMLA). This may also include employees impacted by a natural disaster who must care for a child, spouse, or parent with a serious health condition.
Employee safety is a natural concern for employers and there are obligations placed on employers. The SHRM website notes the following:
When it comes to natural disasters, consider the following under OSHA:
• Employers are responsible to protect employees from unreasonable danger in the workplace, which includes an imminent "natural phenomenon" that will threaten employee safety and health.
• Hurricanes and other disasters present obvious safety concerns that employers need to consider when asking employees to come into work during adverse weather, including vehicle accidents, slips and falls, flying objects, electrical hazards from downed power lines, exhaustion from working extended shifts and dehydration.
• An employee that reasonably believes he/she has been put in imminent danger because of being forced to go to work during a hurricane may file a complaint with OSHA against the employer and then ask for whistleblower protection.
OSHA has guidelines available for employers addressing working in winter weather. The guidelines are designed to help employers protect employees and they offer recommendations for safe work practices, appropriate clothing, and avoiding cold-related injuries.
Expert Help for Workplace Management
Accurate and timely management and HR compliance practices are required for HR professionals in every business. Managing all of this can be challenging, but you do have options.
Accuchex is a reputable workforce management services provider and can not only assist you with the burden of your ongoing compliance demands but can potentially prove to be a more cost-effective solution, as well.
Click the button below to learn what you need to know about labor law in California. For more immediate information, feel free to call Accuchex Payroll Management Services at 877-422-2824