Sharing of emotional states is reduced for individuals wearing face coverings, but the mechanism behind this reduction remains unknown. Here, we investigated if face occlusion by masks reduces empathy by disrupting configural processing of emotional faces. Participants rated their empathy for happy and neutral faces which were presented in upright or inverted orientation and wore opaque, clear, or no face masks. Empathy ratings were reduced for masked faces (opaque or clear) as well as for inverted faces. Importantly, face inversion disrupted empathy more for faces wearing opaque masks relative to those wearing clear or no masks, which stands in contrast to the predictions generated by the classic configural processing models. We discuss these data within the context of classic and novel configural face perception models, and highlight that studying inverted occluded faces presents an informative case worthy of further investigation.