𝗣𝗮𝘆𝗶𝗻𝗴 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝗔𝗳𝘁𝗲𝗿 𝗛𝘂𝗿𝗿𝗶𝗰𝗮𝗻𝗲𝘀 🌀

North Carolina and Florida are still dealing with the aftermath of Hurricane Helene. Hurricane Milton is about to hit Florida. In both states, flooding is rampant, and many are still waiting rescue from the water. An unidentified number of businesses are also underwater and unable to resume normal operations, that’s likely to get worse after Milton makes landfall.

Business owners and payroll specialists may be wondering how to handle federal employment laws during this emergency. Here is short overview.

Paying Exempt Employees During a Natural Disaster

During a natural disaster exempt employees must be treated in a specific manner. When a business closes from natural disasters for less than a week, the employer must pay the exempt employees for their regular salary for that week.

Exempt employees who are available to work, but for whom no work is available, cannot have their pay deducted. Otherwise they are at risk of losing their exempt status under the FLSA.

However, an employer can deduct the employee’s paid leave balance for missed work. This means that their paid time off (PTO) or vacation pay can be used to pay their full weekly wages for the time missed while the business is closed. The important aspect is that the employee receives his or her full pay for the entire week.

If the employee does not have any paid time off balance, then the exempt employee must still be paid during business closures that are less than a week long.

If the business is open, but the employee is unable to get to work, then the business can deduct a full day’s salary from the employee’s wages. The FLSA allows employees to deduct exempt employees pay with a full day’s salary without jeopardizing exempt status.

However, if the employee works for any amount of time during the day and the business decides to close due to weather conditions, then the employer cannot deduct a partial day’s salary from their wages.

Exempt employees must be paid a full day’s work regardless of number of hours they worked that day. Although pay deductions for partial days are not allowed, leave balances may also be used and deducted for partial day absences.

Paying Non-Exempt Employees During Natural Disasters

Under Federal Law, non-exempt employees must only be paid for hours worked. There is no Federal Law that requires payment to hourly employees if they are not working. Employers should check their specific state laws for any variances from Federal Law.

Employees Working from Home or Other Locations

Non-exempt employees who are working from home must be compensated for time worked, even if the employee did not have permission to work from home. Exempt employees must be paid a full day’s wage for any time spent working during the day, even its from and only for a few minutes.