When Not To Pay Employees

“This recent storm resulted in a loss of power at the shop so I closed early. I need to know whether or not I have to pay employees for the full day when it wasn’t my fault they couldn’t work.”

Your HR Survival Tip

Since California has so many wage and hour laws, it can be difficult to know when it’s safe to NOT pay employees. While there may be more reasons based on the situation, here are general rules:

• When you have closed due to public utilities (i.e., electric) being unavailable, you are not responsible for paying for your employees’ lost time.
• When an employee has a work-related accident or illness that is being handled by your workers’ compensation insurance, you are not responsible for paying for their lost hours. Once your carrier agrees the incident is work-related, your insurance will reimburse your employee for any lost wages.
• When an employee is unable to work due to a personal disability (not work-related), you do not pay them other than any sick time they have available and, if they request to use it, vacation time.
• When your employee chooses to leave work early, you are not responsible for paying any additional time or using sick or vacation time to fill out that day unless they have specifically requested it.
• If you suggest going to lunch or dinner (or anywhere) with an employee, you do not have to pay for their time IF IF IF you make it clear the choice to accompany you is voluntary. I usually recommend letting them know up front that attendance is fully voluntary and it is unpaid time.
• If your company wants to put on an event, local or not, you don’t have to pay them for their time to participate. However, as mentioned above, state the rules up front so they know what to expect. Make sure there is no downside if they choose not to participate. You may think they’re crazy for not attending but don’t make them feel bad about their choice.

We already know California is very protective of an employee’s wages so be careful your reason for not paying for their time is legitimate. Please ask if you’re not sure!