As is the case with many natural catastrophes, Hurricane Sandy brought a tremendous number of headaches for residents throughout the East Coast, mainly in the form of property damage. The same was true for business owners, only theirs has been magnified because many workers may have not shown up to work because they were directly affected by the storm.
Unfortunately, this can lead to a number of HR compliance issues if business owners aren't careful.
For example, some business owners may question whether they still need to pay their employees if they don't show up for work. The answer to this largely depends on the situation, but as a general rule, it's largely determined by their status as either "exempt" or "non-exempt." Someone who's exempt means that they have a salaried position and don't qualify for overtime pay. Those who aren't exempt are eligible for overtime and are usually paid depending on the number of hours they work. All of these rules are dictated by the Fair Labor Standards Act, which was originally passed by Congress in 1938.
Thus, if employees are non-exempt, this means that they don't have to be paid if they don't show up for work. Many businesses will not dock a worker their pay if their circumstances prevent them from work, but business owners aren't required to pay them by law.
Exempt employees, meanwhile, do need to be paid the total amount that's owed to them depending on whatever they usually make in a given work week. However, employers have the option of taking away one of their paid vacation days. However, human resource experts advise against this, as it may lead to disgruntled employees.
Business owners may want to update their HR management software with these rules to ensure they stay compliant.
