Storms, outages, and unexpected emergencies don’t wait for a convenient moment—and when they hit, businesses without a plan can find themselves scrambling. That’s why contingency planning isn’t just smart; it’s essential. A trusted CPA firm can play a major role in helping you develop workforce policies that balance legal compliance, payroll continuity, and employee goodwill.
It all begins with having a strategy in place for attendance, pay practices, and operational decisions when disaster strikes. Waiting until the moment something goes wrong can cost your business in morale, legal exposure, and lost productivity. And while some obligations are spelled out in law, a comprehensive plan goes far beyond the minimum.
Understanding the Legal Landscape
Two key federal laws impact emergency workplace policies: the Occupational Safety and Health Act (OSHA) and the Fair Labor Standards Act (FLSA). OSHA is about safety. If there’s a credible risk to your employees’ health—like unsafe travel conditions or hazardous facilities—you could be liable for requiring them to work. FLSA deals with compensation and outlines rules for paying exempt (salaried) and non-exempt (hourly) workers.
What many business owners don’t realize is that following only the legal requirements may not be enough to retain employee trust. A CPA firm can help you weigh the financial pros and cons of going beyond the minimum standards when it comes to paying staff during closures.
Safety First: When to Close and How to Communicate
A central part of OSHA compliance involves clearly deciding when to close your office and how to communicate that decision. Consider adopting a policy that instructs employees to expect text or phone notifications—or even a company-wide email—when closures occur. If that’s not feasible, designate a central point for updates, such as a secure section of your website.
Beyond logistics, consider the physical risks at your facility. If snow and ice make the entrance dangerous or a storm threatens the structural safety of the building, your best option might be to close—even if the roads are passable. A CPA firm can work with you to model the costs of closure versus the liabilities of staying open.
Paying Salaried Employees During Emergencies
Under the FLSA, exempt employees generally must be paid for any week in which they do any work, unless the business is closed for a full week. That means if your doors are shut for a couple of days, you’ll still need to pay those employees. Because that payroll cost is likely coming either way, consider encouraging remote work when it makes sense.
If you want to offset the cost, one option is to deduct emergency closure days from paid time off (PTO) balances. But this approach isn’t without its downsides. Employees who have PTO remaining may feel penalized, while those who have exhausted their PTO may get paid regardless. A CPA firm can help you evaluate policy changes that introduce fairness while staying compliant.
Hourly Employees and Unexpected Downtime
For hourly, non-exempt employees, the FLSA is clear: you only have to pay for hours worked. That includes situations when an employee chooses not to come in or when you instruct them to stay home. But there’s a twist.
If hourly employees work from home during an emergency—even without your permission—you could still be responsible for paying them. That’s why it’s crucial to have a clear written policy explaining that unauthorized remote work is not permitted or compensated. Having your CPA firm review that policy can help ensure there are no loopholes or legal ambiguities.
On-Call Time and Compensation Rules
Not all downtime is free time. If employees are required to be on-call and available to return to work on short notice, their freedom is limited—and that might make those hours compensable. For example, if the power is out and you ask employees to wait onsite for it to come back, that’s likely paid time.
Contrast that with sending staff home but asking them to keep their phones nearby. In that case, their time remains mostly their own, and it likely isn’t paid. A CPA firm can help you craft policies that draw these distinctions clearly, so there’s no guesswork in the moment.
Build a Plan Before You Need It
It’s impossible to predict every scenario, but that’s no excuse for inaction. A smart policy created with the support of a CPA firm will factor in local labor laws, your industry’s norms, and your team’s expectations. Start by deciding how and when employees will be notified, who will get paid and under what conditions, and how you’ll handle PTO or closure days.
Workforce disruptions don’t just test your operations—they test your leadership. Having clear, fair, and legally sound policies in place sends a powerful message that your business is prepared and your team’s well-being matters.
Burton McCumber & Longoria is more than just a CPA firm. We partner with businesses across industries to create strong financial and workforce frameworks that stand up in any condition—rain or shine. Reach out today to learn how we can help you build policies that work for your business and your people.