Paying Employees During a Disaster Like Sandy

Any time we are met with a disaster like Sandy one of the most common questions that are surface are around show up pay and payment of exempt salaries. Here’s what the law says about it:

Paying Employees Who Show Up and Have No Work to Do

While the FLSA does not address this directly, many states do. It is known as call-in or reporting pay. For example, under Mass. Law:

455 CMR 2.03– (1) Reporting Pay. When an employee who is scheduled to work three or more hours

reports for duty at the time set by the employer, and that employee is not provided with the expected

hours of work, the employee shall be paid for at least three hours on such day at no less than the basic

minimum wage.

Here is an excellent summary created by SHRM so you can see the law in your state. http://www.shrm.org/LegalIssues/StateandLocalResources/StateandLocalStatutesandRegulations/Documents/Callbackcallinreportingpay.pdf HR That Works Members should all look at the BNA state law summaries under the Compensation folder.

Paying Exempt Employees Who Cannot Work

Bottom line is that if an employee is ready, willing and able to work, deductions may not be made for time when work is not available (29 C.F.R. 541.602(a)). You can have them use vacation or sick pay under appropriate conditions. Please see this FLSA memo for further instruction http://www.dol.gov/whd/opinion/FLSA/2005/2005_10_24_41_FLSA.htm#.UJFW1IawUYw