Hurricanes and paying enmployees

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. 

Time Keeping App

The Department of Labor has created an i-Phone app that allows employees to enter the hours they work and calculate the wages they are owed, including overtime at time and one half their hourly rate. This will allow employees to keep their own time records. In wage hour litigation well kept employee recortds may be sufficient evidence to overcome any presumption in favor of employer time records if there is a discrepancy.

Wage Hour targets grocers

A Bunkie supermarket has been fined $35,000.00 by the Department of Labor for employing minors under the age of 18 in occupations the government deems hazardous. The Birmingham office of the Wage/Hour has announced an enforcement initiative targeting small grocery owners and franchisees in Mississippi and Alabama.

Formality rejected

In a divided opinion, (Breyer) the Supreme Court has decided that a written complaint is not a necessary prerequisite to a retaliation claim under the Fair Labor Standards Act. The Court refused to decide whether the complaint must be filed with  a court or the government, (as dissenters Scalia and Thomas urged) because the Employer did not raise the issue in its Petition for Certiorari. Nevertheless, much of the reasoning in the majority opinion would support the position that an internal complaint would also be protected by the anti-retaliation provisions.