It happens to nearly every company at some point... and for many, multiple times every year.  What is it?  Inclement weather that forces an office or plant closing.  In the North, the usual problem is snow or ice;  in coastal areas, it’s tropical storms;  in the Plains, floods and tornados.  Even in the relatively consistent climate of Southern California, there are occasional hazards such as torrential rain, mudslides and forest-fire smoke that can curtail business activity for some period.

 

Why is this a matter of concern for company management?  First, because unless ordered by a controlling governmental authority, senior management must make the call as to whether closing the office or plant is warranted, and for what interval of time.  This can be a gut-wrenching decision, and often must be made during what is normally personal time and on the basis of fairly sketchy information.

 

Second, having made the decision to close, you now face a thicket of regulations that govern pay practices in such circumstances.  Some of these are...

• If you close the office, you must pay exempt (salaried) employees for a full day of work;  but you are allowed to charge this time against their PTO bank.  However, if the business closes for a full workweek, exempts need not be paid at all (they are free to use vacation or other accrued time, if they have it). 
• If exempt employees cannot or are not willing to come to the office because of the weather, you are not required to pay them.  (As a practical matter, however, many employers pay them anyway, or allow employees to use available vacation or PTO to cover the absence.)  However, you are required to pay them for a full day if they show up for any portion of that day, even if you didn’t declare it to be a weather emergency. 
• You may dock the pay of hourly (non-exempt) employees for missed time, whether or not you had an emergency plant closing.

The confusion over exempt classification often leads to Department of Labor fines and class-action lawsuits.  Also, improper deductions from exempt employees’ pay – if not caught and reimbursed – can cause those employees to be reclassified as non-exempt, making them eligible for overtime pay ...including back pay for two or more years!

 

Your best defense is to ensure that your employees are correctly classified and that your company does nothing to jeopardize exempt employees’ status.  It’s also a good idea to review and publish your policies and practices, so that all of your employees understand how absences or closings due to bad weather will be handled from a payroll and attendance-tracking standpoint. 

 

Departures from routine – such as those caused by bad weather or other hazards – are an inescapable source of uncertainty and stress for employees and managers alike.  But with a bit of diligent care, you can minimize those effects and avoid unwanted collateral damage to your business.

There are new regulations impacting the E-Verify system for federal contractors. Federal contractors are obligated to utilize the E-Verify system to figure out if employees are eligible to legally work in the United States.

On or before September 8, 2009 it was not mandatory for employers to use the U.S. Citizenship and Immigration Services’ E-Verify system. Employers were able to use it for new hires on a voluntary basis, if they had for at least 120 days contracts valued more than $100,000. Effective after September 8, 2009, however, new and current employees who work on a contract must be reported through the new E-Verify system. 

Considerations for Employers:

• Get More Familiar. Learn about the new E-Verify system whether or not you currently have federal contracts to ensure more proficiency and efficiency.
• Know the Contracts. Make sure your point person with the HR role and responsibilities is aware of any federal contracts to help stay in compliance.
• Plan It Out. The entire staff may need to go through the E-verify system which can pose various administrative (i.e. time and costs) and employee morale issues.
• Conduct Regular Checks. Regularly track to ensure you have up-to-date employee I-9 information and that they meet current compliance standards.

It is unlawful if employers choose to ignore the new rules and regulations and not apply them consistently and fairly in their line of business. So, know if you have federal contracts, and be consistent with Form I-9 and other employment verification documentation practices to avoid misrepresentation and discrimination.

The Obama administration has proposed an extension to the COBRA premium subsidy in its fiscal year 2011 budget.  If adopoted into law, the subsidy would be availale to employees laid off from March 1, 2010 and December 31, 2010.  The subsidy would be provided for 12 months.

This would be the third extension of the COBRA subsidy plan.  In February of 2009 the subsidy was for 9 months, In December of 2009 the subsidy was extended to 15 months. 

For more information on this topic, see Stephen Miller's aricle on the Society for Human Resource Managment (SHRM) web site here.

With recent pandemic flu outbreaks, some employers have grown confused as to which types of employee absences from work may be protected by the federal Family Medical Leave of Absence Act (FMLA).

First of all, FMLA protection is entitled to employees working for a covered employer and who have worked for their employer for at least 12 months, for at least 1,250 hours over the previous 12 months, and at a location where at least 50 employees are employed by the employer within 75 miles. Such employees are provided up to 12 weeks of job-protected, unpaid leave during a 12-month leave year for specified family and medical reasons, which may include the flu where complications may occur.

Employers should consider the following examples to avoid discriminatory practices:

• Employees who are infected.
• Employees who are not infected.
• Employees with certain family members who are infected.
• Enforced company policies.

If the company has an Employee Handbook policy requiring employees to go home sick when they show symptoms of an illness reaching pandemic levels such as the H1N1 flu, that time off may qualify as FMLA-protected leave, if a serious health complication develops. An employee with an infected family member (i.e. spouse or child) is not protected under the FMLA unless a flu-related complication results and thus creates a "serious health condition" as defined by the FMLA. An employee who wishes to stay home because he or she simply does not want to be exposed to the flu from others at the workplace is not protected under the FMLA. An employee who is infected may be protected under the FMLA under certain circumstances when health complications arise. Be sure to obtain a certified note from the employee's attending physician.

As an employer, it is crucial to establish flexible sick leave policies that are non-discriminatory. Whether an absence should be paid or unpaid depends much on your company's relevant policies and employment contracts. If employees must miss work, you may provide alternative options such as telecommuting. In addition, consider contacting an HR professional regarding any state-specific regulations that may require stricter guidelines for pandemic sick leave circumstances.