Wage and Hour After A Disaster
First, and most importantly, our thoughts are with everyone in our community affected by the tornado that moved through Appleton, Menasha, and Neenah on July 27, 2026. The outpouring of support across the Fox Cities has been heartwarming. In the days and weeks ahead, employers may be working through many practical questions while also trying to support their employees and get their businesses back on their feet.
This overview is intended to be a practical resource for some of the immediate wage-and-hour questions that can arise after a storm. For example, employers may be wondering what to do if the workplace is closed, work is interrupted, employees cannot get to the job, or remote work is possible on a temporary basis.
In many cases, the answer starts with the employee’s classification. Non-exempt employees are usually hourly and must be paid for the time they actually work, including overtime when they work more than forty hours in a workweek. Exempt employees are usually salaried and exempt from overtime, but different pay rules apply. Because that distinction drives many of the answers below, each scenario addresses both groups.
The office is closed
For non-exempt employees, the rule is that they must be paid for hours worked. If your building is closed and there is no work for them to perform, you generally do not owe wages for that time. You may allow, or require, employees to use PTO or vacation to cover the gap, but make sure you follow your handbook or PTO policy. Whether to pay for non-working time is usually a business decision, not a legal requirement.
Exempt employees operate under different rules. If an exempt employee performs any work during a workweek, the employee generally must receive the full weekly salary, even if the office is closed for part of the week. That means checking email, taking a call, or doing a small amount of work is compensated at the usual weekly salary. If the office is closed for an entire workweek and the employee performs no work at all, salary is not owed for that week. You may require exempt employees to use PTO for time not spent working, but again, follow your policy and apply it consistently.
Can employees file for unemployment while the office is closed?
Yes. The Department of Workforce Development generally will not deny a claim simply because a business is closed due to a storm. In that situation, the employee did not quit and was not discharged for misconduct. Eligibility will depend on the employee’s wages during the base period, whether the employee remains able and available for work, and whether the employee satisfies any applicable work-search requirements. DWD may waive the work-search requirement for employees who are expected to return to work within a defined period.
Wisconsin also has a one-week waiting period for each new benefit year, so no benefit is paid for the first week the employee would otherwise qualify. If the office is closed for one week, the employee may not receive an unemployment payment. If the office is closed for two weeks, the payment may cover only the second week. If you expect the closure to last beyond this week, consider telling affected employees to apply now rather than waiting, because the waiting week does not begin until they file.
The office is closed, but the work can happen from home
For non-exempt employees, remote work is still work. Answering the phone, processing an order, or replying to a client from a laptop all count as working time and must be recorded and paid. Overtime applies if the employee works more than forty hours in the workweek. If your non-exempt employees do not typically work from home, make sure you have a simple way for them to track their time, such as an email, spreadsheet, or paper log, and make sure they know how to submit it.
For exempt employees, working from home is usually just working from a different location. Their pay does not change simply because the work is remote. The bigger questions are whether the job can actually be done from home and whether the employee has the tools needed to do it. If there is not enough work available, you may require the employee to use PTO, but make sure that approach is consistent with your handbook or PTO policy.
Work is available, but the employee cannot work
Sometimes the office is open, or remote work is available, but an employee’s own circumstances prevent them from working. They may be repairing damage to their home, finding temporary housing, dealing with transportation issues, or caring for children because daycare is closed.
For non-exempt employees, pay still follows hours worked. If the employee does not work, wages are not owed. PTO can be used to cover the missed time if your policy allows it.
For exempt employees, the answer depends on why the employee is absent. When the business is open, work is available, and the employee cannot work for personal reasons, the Department of Labor treats the absence as a personal absence rather than a lack of available work. A full-day absence for personal reasons may be deducted from salary without jeopardizing the exemption, as long as no work is performed that day. Partial-day salary deductions are not allowed. You may also require PTO to cover the missed time if your policy permits it.
Beyond what the law requires
These rules are consistent with federal and Wisconsin law. If you have employees in other states, check the laws in those states as well. These rules are the floor, not the ceiling. Employers may choose to do more than the law requires.
Allowing employees to use PTO is often the easiest option, but apply it consistently. If you are making an exception to your handbook or PTO policy, be clear that it is a one-time exception for this situation, not a permanent policy change.
A written PTO donation policy, sometimes called leave sharing, may allow one employee to donate accrued time to a coworker who does not have paid leave available. Be careful with how the program is structured. IRS rules can treat donated leave as taxable wages to the donating employee unless certain requirements are met, including use of a leave bank and limits tied to qualifying disaster situations.
If you offer an Employee Assistance Program, this is a good time to remind employees that it is available. You may also want to point employees to United Way’s 211 phone number or website for disaster recovery, shelter, and financial assistance resources. FEMA’s DisasterAssistance.gov and the American Red Cross may also be helpful resources for employees whose homes were damaged by the storm.
A final note
A storm gives employers more than enough to manage. Pay questions, employee absences, remote work, and temporary closures can add pressure at a time when everyone is already focused on safety, cleanup, and getting back on their feet. We hope this overview helps employers think through some of the immediate wage-and-hour questions that may arise and make practical decisions for their workplaces and employees.
This article contains general information only. It is not legal advice and should not be relied on for any specific situation. Contact McCarty Law LLP to discuss your circumstances directly.
Rebecca A. Kellner
Rebecca provides practical and accessible legal support for businesses, with a focus on delivering strategic advice tailored to each client’s individual goals.