Natural Disasters

As we approach this hurricane season and the fifth anniversary of Hurricane Katrina, now is an appropriate time to consider the lessons of that disaster.  Swift action must be partnered with careful planning to help minimize employers' exposure to liability after a natural disaster occurs.  The following issues are likely to have the greatest impact on employers.  

The Fair Labor Standards Act

After a natural disaster occurs, employers should be wary of issues that may arise under the FLSA.  In particular, claims based on under-payment of wages may occur if the disaster destroys employee time records and employers subsequently fail to pay employees for work performed prior to the disaster.  Additionally, employers should avoid violating minimum wage requirements under the FLSA when employees volunteer to perform job-related services off the clock.  Because the FLSA includes "suffer or permit to work" in the definition of "employ," time spent by employees