Take Care Implementing Pay, Work Reductions During COVID-19 Slowdown

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Q. Because of the coronavirus, we have reduced everyone’s hours to 30 per week. An employee wants to take his paid time off (PTO) but be paid for his normal 40-hour workweek. Can the company pay for only 30 hours since that is what the entire staff has been moved to?

A. It depends. You must treat exempt and nonexempt employees differently. With respect to nonexempt (typically hourly) employees, you may reduce their hours based on available work. Continue to have them accurately track their hours worked and pay each employee based on hours worked.

If you asked your hourly employee to reduce his hours worked to 30 hours per week and he worked over that amount, you must pay him for all hours worked but may discipline him for failure to follow the hours-reduction directive. You aren’t required to permit an hourly employee to use PTO to supplement the reduced hours.

With respect to exempt (salaried) employees, you cannot reduce their compensation based on hours worked. Read more here…

Source: HR Daily Advisor

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