FFCRA: Comply with COVID-19 Employee ‘Reduced Hours’ Rules

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FFCRA: Comply with COVID-19 Employee ‘Reduced Hours’ Rules

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Reduced Hours Pay During Coronavirus

QUESTION: Several of our staff have requested to work less hours per week because of the current unavailability of childcare due to COVID 19. Based on the recent pandemic-related employment rule changes, are we required to pay these employees for their full-time schedule or can we only pay them what they work?

Question from Fort Lauderdale, Florida Subscriber

 

ANSWER:To help families during COVID-19, the government has implemented several employment-rule changes in the forms of the following acts:

  • FMLA – Family Medical Leave Act
  • FFCRA – Families First Coronavirus Response Act
    • EFMLEA – Emergency Family and Medical Leave Expansion Act
    • EPSL – Emergency Paid Sick Leave

Both the EFMLEA and EPSL are subsets of FFCRA.  One their aims is to hold positions for employees who cannot work or are caring for a child whose school or place of care is closed.  Physician’s offices, however, are exempt from FFCRA. Therefore, you are no required to pay employee for time they do not actually work.

Not being obligated to pay your staff for time they don’t work is good for you, but creates some significant financial challenge for your employees. Consider providing your staff with the following ideas to help them through these difficult times:

  1. Use Paid Time Off Benefits: Check if your employee has vacation, sick leave, or Paid Time Off (PTO). If you want to pay her for the reduced hours and she wants to take those benefits, you can apply the allocated days off to the hours missed.
  2. Apply for Unemployment: Check whether your state unemployment benefits cover partial absences. Many states allow an employee who has reduced pay from reduced hours to receive pay from the employer and benefits pay for the underwork. Unemployment rules count absence due to COVID-19 related issues such as daycare and school closings as a covered absence. If the state unemployment allows partial pay and benefits, consider having the employee file for unemployment.
  3. Reduce Salary: As long as an employee is not under contract with you, reducing their compensation to take into account less worked hours should not be a problem. However, if your employee does have a contact, reducing their pay could potentially constitute a breach in its terms. In these situations it is recommended that you discuss the situation with your legal counsel before making any changes.

This Q&A is from healthcare attorney Kelly Holden’s online training “New COVID-19 Employment Rules: Head Off Legal Nightmares.”  For more answers to your essential COVID-19 employment questions, listen to her session available for immediate download. Kelly will walk you through each of the COVID-19-related employer regulations and give you expert advice on how you can use them to help your employees, AND protect your practice.


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Meet Your Writer

Kelly Holden
JD

Heathcare Lawyer

Kelly Holden has been in private practice for 27 years representing employers of all sizes.  She handled all aspects of employment law including defense of cases in federal and state court as well as numerous federal and state administrative agencies.  She also specialized in immigration matters for employers and did estate planning for families. She is currently in-house legal counsel for a physician group as well as assisting other clients with employment and healthcare related legal issues. Kelly is on the Board of Interparish Ministries and the Finance Commission of St. Veronica Church. She graduated from Franklin College in Indiana in 1990 with a B.A. in Journalism and from Chase College of Law in 1996.  She lives in Cincinnati, Ohio with her husband and four children.