What employers should know as Hurricane Florence approaches

As the Carolinas and the East Coast brace for Hurricane Florence, employers in the affected areas should be prepared to address storm-related issues. For instance, those who are required to close their businesses need to determine whether they need to pay workers who stay home — which puts those employers on the hook for unemployment compensation — and whether workers’ compensation applies to weather-related injuries.

Here are six questions employers may have — and answers — about how the hurricane will affect their operations.

The answer to this question depends on whether the employee is exempt or non-exempt.

Exempt employees: If the business closes because of the weather, the FLSA requires employers to pay an exempt employee his or her regular salary for any shutdown that lasts less than a week. Under the FLSA, an employer cannot deduct an exempt employee’s pay based on the quantity or quality of the employee's work or when he or she is ready, willing and able to work but no work is available.

Thus, deducting an exempt employee’s pay for absences due to a business closing that lasts for less than a week would jeopardize the employee's exempt status. A private employer may, however, deduct the period of absence from the employee's paid vacation or paid time off, as long as the employee receives his or her full salary for the week.

If the business remains open but an employee cannot get to work because of the weather, an employer can deduct an exempt employee’s salary for a full day’s absence. Under the FLSA, an employer can deduct an exempt employee’s pay for a full-day absence taken for personal reasons without jeopardizing the employee’s exempt status. Employers cannot, however, deduct an exempt employee’s salary for less than a full-day absence without jeopardizing the employee’s exempt status.

Nonexempt employees: Under the FLSA, employers generally are not required to pay nonexempt employees for any days that the employee does not perform any actual work. Thus, employers are not required to pay employees for days they did not come to work or for days when the business was closed because of a weather event. This does not apply to nonexempt employees who are paid on a fluctuating workweek basis. These employees must be paid their full weekly salary for any week during which any work is performed, even if they miss some work due to the storm.

State reporting pay requirements: Be aware that some states have reporting pay or “show-up” pay requirements that require employers to pay a minimum amount to employees who show up for work even if they do not perform any work. Employers should familiarize themselves with the requirements of these state laws. Additionally, collective bargaining agreements may require employers to pay employees for a guaranteed minimum number of work hours regardless of the number of hours actually worked.