Navigating Disasters: Essential Guidance for Employers in Crisis

Amid the devastating wildfires currently affecting Southern California and the general increase in natural disasters, many employers have experienced business closures, lack of power or limited access to technology, and related employee health issues. In addition to the immediate operational and safety concerns, you must also navigate the emotional toll these disasters have on your employees and communities. It’s crucial that you plan ahead and stay prepared.

Paying Employees

Exempt employees who complete any work during the workweek are eligible to receive their full weekly compensation in the event of a natural disaster. No deductions should be made from an exempt employee’s regular wage if the business chooses to close early and they only work a portion of the day.

 Non-exempt employees are generally required to be paid for all hours worked. Additionally, California’s reporting time pay rules state that if employees are sent home early, they must be paid for at least half of their scheduled shift—no less than two hours and no more than four hours. However, if a natural disaster occurs, reporting time pay doesn’t apply, as it’s beyond the employer’s control.

You can pay your employees even when pay is not required or allow them to take advantage of paid time off. Be consistent and make sure your policy is communicated clearly.

Late Wage Payments

It is important to make alternative arrangements for payroll when there is no power and/or access to the payroll system. Contact your payroll provider for guidance and procedures now, rather than waiting until the disaster occurs.

If you are unable to process payroll on time, you are required to provide written notice to your employees with pay date changes. This notification should be done as quickly as possible.

Accommodating Employees

Under the Fair Employment and Housing Act (FEHA) and the Americans with Disabilities Act (ADA), you are required to provide reasonable accommodations to employees who sustain physical or mental injury as a result of a natural disaster. At the very least, the interactive process should be started. For instance, employees who are sensitive to smoke may require time off or an alternative worksite.

Additionally, those who lose their homes—whether permanently or temporarily—might require time off for emotional or mental support. If you have an Employee Assistance Program (EAP), it’s a good idea to remind your team about the access and benefits available to them. At the end of the day, do your best to ensure your employees are taken care of and feel supported during these types of crises.

Resources for Victims of Disasters and Employers

The Employment Development Department (EDD)provides various disaster-related services, including assistance in filing unemployment insurance (UI) claims for individuals and time extensions for filing and paying payroll taxes for employers. The one-week waiting period for UI has been waived for anyone affected in the disaster area after Governor Newsom declared a state of emergency on January 7 due to the fires. For more information, check out the EDD website here.

CalChamber is also an excellent hub for resources as they have recently published a list of tools and information to assist employers while managing their operations during this challenging time. You can view the complete list here.

Communication is Key

Communication is essential in emergency situations. Key decision-makers and management should discuss work-from-home arrangements, alternative workplaces, office closures, extra benefits, and any extensions for payroll reporting. Numerous factors must be considered when handling a natural disaster.

If your company operates in the Los Angeles area or if any of your employees have been affected by the fires, please reach out to our consulting team. We are here to assist you. Also, be sure to check back next week for information on business continuity during times of crisis.