To reduce the risk of utility-related wildfire in California, utility companies can shut off electrical power lines, particularly during heat waves, high winds and other extreme weather conditions. How should nonexempt (hourly) employees be compensated for their time when a business cannot open due to a power failure?
In general, employers are obligated to pay “reporting time pay” to hourly employees when these employees are required to report for work and aren’t provided at least half of their usual hours for the day. An employer must pay the greater of half of their scheduled day (up to four hours) or, at minimum, two hours at their regular rate of pay.
However, employers are not required to pay hourly employees if any one of the following exemptions applies:
- When operations cannot begin or continue due to threats to employees or property or when civil authorities recommend that work not begin or continue.
- When public utilities fail to supply electricity, water or gas or when there is a failure in the public utilities or sewer system.
- When the interruption of work is caused by an act of God, such as an earthquake, or other cause not within the employer’s control.
Hourly employees should be compensated for their hours worked if the business experiences a power failure during a workday.
Laws concerning pay deductions for exempt (salaried) employees differ. Deductions may not be made for time when work is not available if the employee is ready, willing and able to work.
CDA’s Employee Manual includes a Reporting Time Pay Policy. Members can log in to access it.