In the face of the COVID-19 pandemic, employers are striving to keep employees and families safe. However, what compensation employees are entitled to may be confusing, especially with many employees forced to stay home for quarantine situations. Reference this guidance to determine the best course of action for your workforce.
What are the requirements around paying my employees if an organization is closed or if the employee is sent home?
If the business is closed due to COVID-19 related issues:
|Exempt (assuming ready and able to work)||
If the company is open and the employee does not come in (either voluntarily or is involuntarily sent home due to exposure or potential illness)...
|Exempt with no available PTO/sick leave||
||Exempt with available PTO/sick leave||
Note: If the non-exempt employees are paid on a salary basis instead of by the hour, the same rules above apply. The way they are paid does not affect the non-exempt status, thus still allowing the employer to deduct pay.
*In many jurisdictions, paid sick leave is typically used at the employee’s option, and the employer may not force employees to use it. Employers should review the paid sick leave requirements in their locations of operation..
This information is as of 3/24/2020. Please note that this information does not include the extended leave provisions under H.R. 6201: Families First CoronaVirus Response Act that will go into effect on April 2, 2020.