When the lights suddenly go out at work due to a power failure, whether you get paid for that downtime depends on your employment classification and the duration of the interruption. Federal and state laws establish clear rules to determine when an employer must compensate you for time when you are present but unable to perform your job duties. Understanding your status and the length of the outage are the first steps to knowing your rights regarding unexpected workplace downtime.
Understanding Employment Status: Exempt vs. Non-Exempt
Your pay during a power outage is governed by your classification as an exempt or non-exempt employee under the federal Fair Labor Standards Act (FLSA). This classification is based on your salary level and the type of job duties you perform, not your title. Exempt employees are generally salaried workers who hold professional, administrative, or executive roles and are not entitled to overtime pay. To qualify, an employee must meet a minimum salary threshold and satisfy a “duties test.”
Non-exempt employees are covered by the FLSA’s minimum wage and overtime provisions. This group primarily consists of hourly workers, though it can include some salaried employees who do not meet the tests for exemption. Non-exempt workers are paid for every hour worked, while exempt workers receive a consistent salary regardless of the quantity of work performed in a given week. This difference dictates the rules for compensation when a power outage interrupts the workday.
Non-Exempt Employees: Pay During Short Interruptions
For non-exempt employees, pay during a short interruption depends on whether you are “engaged to wait” or “waiting to be engaged.” If the employer requires you to remain on the premises until the power is restored, that time must be paid, even if you are idle. This is considered “engaged to wait,” as the employer benefits from your immediate availability to resume work. This compensable time applies even if you are allowed to perform personal activities while remaining ready for duty.
If the employer relieves you of duty and allows you to leave the workplace for an extended period, that time is generally not compensable; you are “waiting to be engaged.” The employer must clearly state that you are free to use the time for your own purposes and are not restricted by work demands. Federal regulations mandate that short rest periods, typically five to twenty minutes, must always be counted as time worked and paid. If the power returns quickly enough to be classified as a short break, you must be compensated for the full duration.
Exempt Employees: Pay During Temporary Outages
Compensation for exempt employees during a power outage is determined by the “salary basis” test, which is required to maintain their exempt status. This test mandates that an exempt employee receive a predetermined, full salary for any workweek in which they perform any work. If an exempt employee works even a portion of the day before the power fails, the employer cannot legally dock their pay for the rest of that day.
An employer cannot deduct from an exempt employee’s salary for absences caused by the operating requirements of the business, such as a power failure. If an exempt employee is ready and able to work but cannot due to the business closure, they must still receive their full day’s pay. The only way an employer can reduce an exempt employee’s pay is if the business is closed for an entire workweek and the employee performs no work during that period.
State Reporting Pay and Minimum Hour Laws
While federal law does not require payment when a non-exempt employee is sent home early, many states mandate “Reporting Time Pay.” These laws require the employer to pay the employee for a minimum number of hours if they report for a scheduled shift and are sent home early due to a lack of work, such as a power outage. The purpose of this pay is to compensate employees for the time and expense of commuting when they receive little or no work.
For example, California law generally requires non-exempt employees to be paid for at least half of their scheduled shift, between two and four hours of pay. New York has similar laws, requiring up to four hours of pay at minimum wage for certain scheduled shifts. Note that many state laws contain specific exceptions. Some may not require Reporting Time Pay if the business interruption is caused by a failure of public utilities, which could apply to a widespread power outage.
Handling Extended Business Closures
If the power outage causes a closure lasting a full day, multiple days, or an entire week, the rules depend on your status. For non-exempt employees, the employer is not obligated to pay for time when the business is officially closed and they are relieved of all duties. However, the employer may require non-exempt workers to use accrued Paid Time Off (PTO) or vacation time to cover the missed time.
For exempt employees, the salary basis test continues to apply; they must be paid their full salary for any week in which they perform any work. For full-day closures, the employer can require an exempt employee to use a full day of available PTO to cover the absence. This practice maintains the employee’s full salary while accounting for the missed time against their benefit bank. If the employee can perform their normal duties remotely, the employer may require temporary teleworking to ensure the work is completed.
Next Steps for Employees
When a power outage or other unexpected event occurs, clear and immediate communication with your manager is the most practical first step. Ask whether you are expected to wait on the premises or if you are free to leave, which clarifies if your time is compensable under federal law. Document the exact time work stopped, the time you were told to wait, and the time you were sent home, as this record is necessary for calculating any pay owed.
You should also confirm your state’s specific Reporting Time Pay laws, including any exceptions for utility failures, to verify your right to minimum pay for showing up. If you believe your employer has improperly withheld wages for time that should have been paid, you can contact your state’s Department of Labor or Wage and Hour Division.