Hurricane Sandy's Effects on Labor and Employment Law

Hurricane Sandy has come and gone, but its after effects are clearly evident.  In addition to financial, emotional and physical impacts from the storm, labor and employment issues also arise.  Employers must stay vigilant when it comes to paying employees during this time, and continue to comply with federal law. 

The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees only for hours that the employees actually worked.  An employer is not required to pay nonexempt employees if the employer is unable to provide work due to a hurricane or other natural disaster.  On the other hand, an employer must pay exempt employees their full salary even if the worksite is closed or unable to reopen due to the disaster.  (The employer can require that the exempt employees use allowed leave for that time.) 

In the event that the employer is open for business, but an exempt employee chooses to stay home due to the weather, that employee may be placed on leave without pay or be required to use accrued vacation time.  The Department of Labor considers this as an absence for personal reasons.  If an employee is absent for one or more full days for personal reasons, deductions from pay may be made, with caution.  Employers must remember that a deduction for less than a full-day's absence is not permitted in any circumstance.  Also permissible is requiring exempt employees to make up lost time after they return to work.  Any non-exempt employees, however, must be paid overtime for all hours worked over forty hours per week. 

The Family and Medical Leave Act (FMLA) also effects absences due to a natural disaster.  Employees are entitled to leave under the FMLA for a serious health condition caused by the disaster, or to care for a child, spouse or parent with a serious health condition caused by the disaster.

Other federal laws may apply during natural disasters – such as OSHA, the NLRA or the ADA; please consult with Kaye Law Offices, P.A. to ensure that your company is compliant.