A business might remain obligated to pay employees during a period of operational disruption, even if no work is performed, primarily under state-level "reporting time pay" laws or, at the federal level, due to violations of the Worker Adjustment and Retraining Notification (WARN) Act. Additionally, such obligations can arise from collective bargaining agreements.
Many U.S. states have "reporting time pay" provisions, also known as "show-up pay" laws. These state labor laws mandate that if an employer requires an employee to report for a scheduled shift but then sends them home early, or does not allow them to work at all, due to a lack of work or operational issues—such as equipment failure, a power outage, or an unexpected closure—the employer must pay the employee for a minimum number of hours, even if no work was performed. This compensation is intended to cover the employee's time and expense in reporting to work as scheduled. For example, some states requ....
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