As inclement weather descends upon us, or other natural disasters occur, businesses face the critical decision of whether to suspend operations to safeguard employees. While prioritizing safety is essential, these disruptions bring wage & hour considerations into sharp focus. Our aim is to guide you through the complexities of handling wage & hour issues during unexpected closures and breakdown the legal obligations and practical strategies you can implement to manage such situations effectively.

Wage & Hour Considerations During Business Closures:

When inclement weather or unexpected disasters force a temporary shutdown, employers must consider how to handle compensation for exempt employees, if applicable, and non-exempt employees.

Exempt employees, by definition, are paid on a guaranteed salaried basis. Under the federal Fair Labor Standards Act (FLSA) and applicable state/local law, these employees must generally receive their full salary if they work any portion of the workweek, even if the business closes for part of it. Employers cannot deduct pay for absences caused by the employer, such as a weather-related shutdown.

If exempt employees can work remotely during closures, then their compensation obligations remain the same since they are working during that time. Employers should ensure that exempt employees’ duties are aligned with remote work capabilities.

For non-exempt employees, the FLSA and applicable state/local law mandates payment only for hours actually worked. If a closure prevents a non-exempt employee from working and remote work is not feasible, the employer is not required to pay them. However, some employers choose to provide pay during closures as a goodwill gesture or to enhance employee loyalty.

There are nuances to consider for either exempt or non-exempt employees:

• • Vacation: Employers may require employees to use vacation benefits during a closure. However, this decision should be weighed against potential morale issues. In challenging times, requiring vacation usage might seem unsupportive, especially if employees face personal difficulties due to the weather. 
  • Sick Leave and/or PTO: For states, cities, or counties with sick leave ordinances, employers may be prohibited from requiring the use of sick leave and/or PTO benefits for any reason. It’s critical to ensure your policies and decisions align with any paid sick leave/PTO laws applicable in your jurisdiction to avoid compliance issues.

Remote Work and Connectivity Challenges:

Inclement weather or natural disasters often disrupt utilities and internet connectivity, creating additional hurdles for remote work. Employers should be aware of the following:

• • • Exempt Employees: Even if exempt employees lose internet access or face utility outages, they must still be paid their guaranteed salaries. Employers should encourage open communication about connectivity issues and explore alternative solutions, such as mobile hotspots or public workspaces with internet access.
    • Non-exempt Employees: If a non-exempt employee cannot perform their duties due to connectivity issues, they are not entitled to payment for hours not worked. Clear policies about expectations during such scenarios can help mitigate confusion. For example, specify whether employees should attempt to find alternative work locations or use personal resources to stay connected.

Proactive Strategies for Business Disruptions:

Preparation is key to managing business disruptions effectively. Here are some actionable steps to consider:

• • 1. Develop a Comprehensive Policy: Craft an unforeseen closures policy tailored to your business needs. This should address:
       • Closure protocols and decision-making processes
       • Remote work expectations for exempt and non-exempt employees
       • Vacation/PTO usage guidelines
       • Procedures for reporting connectivity issues
       
    2. Establish a Robust Communication Plan: Clear and timely communication is critical during unforeseen closures. Ensure all employees are aware of how to receive updates and contact management in emergencies. Leverage multiple channels—email, text, or internal communication platforms—to disseminate information.
    3. Clarify Roles and Expectations: Set clear expectations for employees regarding remote work capabilities and requirements during business disruptions. For example, outline which roles are eligible for remote work, the tools required to perform tasks remotely, and any reporting obligations.
    4. Invest in Remote Work Tools: Equip your team with the necessary resources to work effectively from home. This might include portable hotspots, laptops, or access to cloud-based platforms to ensure continuity during weather or natural disaster disruptions.

Balancing Compliance and Employee Relations:

While adhering to federal/state/local law requirements is non-negotiable, employers should also consider the human element. Inclement weather or natural disasters can bring personal and professional challenges for employees, from power outages to childcare issues. Demonstrating empathy and flexibility during these times can foster trust and loyalty within your workforce.

For example, offering additional paid leave or discretionary pay for days missed due to weather closures can reinforce your company’s commitment to its employees. These gestures, while perhaps not legally required, can have a significant impact on morale and retention.

Conclusion:

Inclement weather or natural disasters may be unpredictable, but your response doesn’t have to be. By understanding your obligations under the federal/state/local law, proactively crafting policies, and maintaining open communication with your team, you can navigate these challenges effectively. If you’d like assistance in developing or refining your unforeseen closures policy, feel free to reach out. Together, we can ensure your business is prepared to weather any storm—both literally and figuratively.