Employment Issues During a National Crisis
by Lauraine Bifulco, Vantaggio HR, ltd.

Since September 11th, Vantaggio's phone has been ringing off the hook with an onslaught of employment-related questions that have arisen in the aftermath of the terrorist attacks and in light of the on-going war. From small retail stores to large multi-state enterprises, employers and their HR departments are now being confronted with issues that didn't need such immediate attention just two short months ago. Following is a partial list:

Emergency Shut-Down If your employees are non-exempt (eligible for overtime pay), and you give them the option of staying at work or leaving, and they decide to go home, you only need to pay them for the actual hours worked. If you direct them to go home early, you may have to pay California's "reporting time pay" penalty equal to half the number of hours they were scheduled to work (minimum 2, maximum 4). Reporting time pay, however, would not be required if one of these conditions is present:

  1. Business operations cannot commence or continue due to threats to employees or property, or when recommended by civil authorities
  2. Public utilities fail to supply electricity, water, or gas, or there is a failure in the public utilities or sewer system
  3. The interruption of work is caused by an Act of God or other cause not within the employer's control
  4. The employee in question is on paid standby status

If you contact non-exempt employees before they report to work and tell them not to come in, you are not required to pay them. Since exempt employees are paid on a salaried basis, you must pay them their full salary for any week in which they perform some work, unless they absent themselves for a full day for personal reasons.

Emergency Activities The California Labor Code has provided protection for volunteer firefighters for many years. Effective 1/1/01 the law now applies to reserve peace officers and emergency rescue personnel as well. In short, employers must provide leaves of absence for such individuals when they are required to perform emergency duty. Although employers are not obligated to provide pay during such leaves, if you deny leave or otherwise discriminate against an employee requesting leave, you may be required to reinstate the person and reimburse him/her for lost wages and benefits.

Military Leave In 1994 Congress passed the Uniformed Services Employment and Reemployment Rights Act, which covers all civilian employers-private or public-regardless of size. Unlike its predecessor law, the type and nature of military service is no longer a consideration in determining the employer's obligations and the employee's rights. With the recent call-up of reservists, even our small, local employers need to be aware of these requirements. In brief, USERRA establishes protections for employees who need to take military leave with regards to eligibility, notice requirements, length of leave, pay, benefits, and reinstatement. Details are available at: http://www.dol.gov/elaws/userra0.htm.

Family and Medical Leave If your company employs more than 50 people within a 75-mile radius, you are required to comply with the federal Family & Medical Leave Act as well as California's Family Rights Act. Employees who have been injured or who need to attend to family members who have been injured in the recent attacks in our country may be entitled to protection under these laws, which provide, among other things, for unpaid leaves of up to 12 weeks per year.

Bereavement Leave While there are no federal or state laws that require the granting of time off for bereavement purposes, now would be a good time to examine your company's policies. You may want to establish a policy that allows employees some time off either with or without pay in the unfortunate event of a death.

Emergency Preparedness Every company should have a formal emergency preparedness plan in place. An easy way to get started is to establish a management crisis team consisting of a few employees. This team would consider what your company's policy should be regarding: emergency evacuations and shut-downs, safety preparedness, communications, and return to business operations after an emergency. With the current Anthrax scare many companies have decided to provide guidelines to their employees about the safe handling of mail. For information and assistance, contact the Center for Disease Control at www.bt.cdc.gov/Planning, the United States Post Office at www.usps.com/news/2001/press/pr01_1010tips.htm, San Diego Gas & Electric at www.sdge.com, or the Governor's Office of Emergency Services at www.oes.ca.gov.

Travel Policies With air travel more restricted and employees who may be reluctant to travel out of town, your company should review its travel policies to be sure they address these new concerns and comply with California law.

Do you need help? If you have other questions or need additional assistance, please call Vantaggio HR.

Lauraine Bifulco is the President of Vantaggio HR, ltd., an Orange county firm offering human resource and management consulting to small and mid-sized companies. Vantaggio's services include recruitment, federal and state labor law compliance, employee handbooks, compensation, employee benefits, training, discipline, terminations, payroll, and other HR-related services, as well as outsourcing of the entire HR function. Lauraine can be reached at (949) 425-1262.

The information presented in this article is intended to be accurate and authoritative information on the subject matter covered at the time submitted for publishing. It is distributed with the understanding that Vantaggio HR, ltd. is not rendering legal advice and assumes no liability whatsoever in connection with its use. © Vantaggio HR, Ltd., 2001.

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