From Yahoo Finance:
“The US government clarifies when
workers must get paid amid coronavirus shutdowns”
The U.S. Department of Labor
(DOL) posted new guidance this week clarifying compensation requirements for
employees who have worked only partial work weeks due to coronavirus-related
business closures. Salaried workers exempt from being paid overtime, if
mandated by their employers to stay home, must be paid in full even if they
complete only a partial week’s work. Non-exempt workers are not similarly
protected. Under the Fair Labor Standards Act (FLSA), employers need only pay
non-exempt employees for hours worked, regardless of whether they had been
scheduled to work additional time. “The general rule is that you don't have to
pay [exempt workers] for a week in which they perform no work, but if they work
a portion of the week then you owe an exempt employee their full salary,” Zach
Hutton, an employment lawyer with the Paul Hastings law firm, told Yahoo
Finance. Hutton said he’s been fielding questions from employer clients
uncertain of their responsibilities to compensate employees when the quantity
of an employee’s work is compromised as a result of working outside the usual
place of business. Until the DOL issued its new guidance it was unclear whether
a viral outbreak would justify reducing employee compensation. “The new
guidance reinforces that if an employer has a shutdown and instructs employees
to stay at home and not work, an exempt employee doesn't have to be paid for a
week in which they perform no work, but they generally do have to be paid for a
week in which they perform some work,” he said.
Do employers have to pay for
work-at-home expenses?: Additional
unforeseen expenses that may arise for employers are tied to local rules that
can require reimbursement of employee expenses incurred during a work-from-home
mandate. In certain states the scenario triggers non-negotiable costs for
employers. In California, for example, employers must reimburse reasonable and
necessary employee business expenses, Hutton said. “So if [employers] suggest,
or strongly suggest, or require that an employee telecommute,” he said, “then
you can unwittingly end up with an obligation to pay for a portion of the
employees’ expenses.” Expenses could include home office equipment, supplies
and internet connectivity, just to name a few. “In the aggregate, that cost can
be substantial,” Hutton said. Though
expense reimbursement may be somewhat offset by savings realized due to less
trafficked offices, the extent of savings will largely depend on the size and
scope of an employer's workforce. Employers that save on maintenance, cleaning
services and utilities can’t avoid major fixed costs such as rent, mortgage and
insurance premiums. Ira Klein, also a Paul Hastings attorney, said a decision
to instruct employees to work from home during the outbreak should be based on
an assessment of an employee’s exposure risk. Exposure risk, he said, can be
difficult to assess because they allow for interpretation. Risk levels — low,
medium and high — are based on the likelihood of transmission at work, where
employees may either contract COVID-19 or spread it to others.
“There's
so many different ways to look at risk,” Klein said, explaining that guidance
comes from separate agencies and laws that must be read together, including the
Centers for Disease Control and Prevention (CDC), the Occupational Safety and
Health Administration (OSHA), and state and local authorities. Under OSHA, he
said, healthcare workers who engage in close person-to-person contact are
considered high risk. Other layers of risk analysis under OSHA are based on
whether the work is performed in an area of widespread transmission, and
whether a worker’s job places her in contact with people returning from areas
of widespread transmission. Whether a job places a worker in contact with the
general public is also considered. CDC guidance differs, Klein said, in that it
is more focused on individual employee actions such as travel and sanitary
practices.
As COVID-19 spreads, challenges
for employers to make the right call are becoming increasingly difficult: “Guidance
from agencies, including the CDC and OSHA, and state level agencies and local
health departments, are being updated in nearly real time,” Klein said. “If an
employer is doing everything that’s reasonable, given agency guidance from the
CDC and OSHA, and an employee still says, ‘I don't want to come to work,’ I
think that those are where the hard questions will come up.”
^ There is a lot of uncertainty in
the business world of what is required during this pandemic. The Federal and State
Governments need to make concrete statements (like this one) to give them
guidance about the laws as well as changing some of the laws to fit this
current situation. ^
https://finance.yahoo.com/news/the-us-government-clarifies-when-workers-must-get-paid-amid-coronavirus-shutdowns-200803771.html
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