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Disaster Dilemma

The article, “Disaster Dilemma: How to Pay Employees Who Missed Work”, discusses the impacts of hurricane Sandy on businesses. The article discusses the costs borne by companies affected by the hurricane. Companies such as PNC Financial Services, Starbucks, Madison Square Garden Co, Morgan Stanley and Advisory Board Co choose to pay their employees even though they were absent from work (Korn et al., 2012). PNC Financial Service Group considers five days as enough time for victims of the hurricane to recover and resume their duties in open branches. Starbucks Corp plans to compensate workers attached to the unopened branches for a period of 30 days after which it will reevaluate its compensation scheme on employees’ individual. Madison Square Garden Co plans to continue paying absent workers for a maximum period of 3 days. Morgan Stanley adopted the approach of continuously supporting its employees until they can overcome the impacts of the hurricane. Companies such as Suffolk Transportation Service Inc extended their supported to employees by providing hardship loans and advances on bonuses (Korn et al, 2012). Dunkin’s Brand Group Inc allowed franchisees more time to settle their royalties and enabling a flexible mode of paying employees.

The article highlights varying extents of the damages that natural disasters cause on businesses. Research shows that floods have sever effects on business operations compared to hurricanes. In this regard, the authors discuss companies’ responsibilities concerning payment of salaried and hourly employees. Laws relating to the remuneration of workers highlight appropriate approaches by companies in cases whereby workers do not perform their allocated duties. Unless otherwise stated, companies are liable to pay hourly employees as per the hours they normally work (Korn et al., 2012). This does not consider whether there is work available for the employees. Concerning salaried workers, companies are liable to pay them, but upon the deduction of vacation days. Vacation days include the failure to work due to natural disasters. The article highlights the assertions of some compensation experts who consider companies that pay employees affected by various calamities as maintain morale and loyalty among their workers.