Paying Employees After a Disaster
After a disaster stops your operations, payroll obligations do not pause automatically. Hourly staff are owed for time worked; exempt salaries generally continue unless a full workweek is closed; and your records obligation survives even when your office does not.
Who is paid for a closed week
Nonexempt hourly staff are owed wages for hours actually worked before the closure. Exempt staff are generally owed the full salary for any week they performed any work, even one hour; only full workweeks with no work at all can go unpaid under the salary basis rules.
| Situation | Obligation |
|---|---|
| Hourly, worked part of week then closed | Hours worked only; closing is not compensable |
| Exempt, worked any part of week | Full salary for the week |
| Exempt, entire week closed | No salary owed for that week |
| Remote staff unaffected | Normal pay continues |
Practical moves that help
- Run an early payroll ahead of a forecast storm and let staff bank cash.
- Offer payroll advances rather than loans; document them as advances.
- Reissue lost cheques fast and stop-payment the originals.
- Publish one channel for pay questions so answers stay consistent.
Records matter most when systems are down: keep an off-site copy of the last few payrolls so W-2s and verification letters survive the event. If payroll runs through a PEO, continuity sits with them - ask how they operate when their region floods, not just yours.
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Frequently asked
Must we pay for a closure day itself?
Nonexempt staff: no, unless policy says otherwise. Exempt staff: yes if they worked any part of that week.
Can we require PTO to cover closure days?
For full-week closures of exempt staff, no salary deduction applies regardless. For nonexempt staff, mandatory PTO use for closures depends on state rules and your policy.
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