![]() It is there to support businesses so they can maintain employees on payroll. PPP is a small business relief measure developed under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Paycheck Protection Program (PPP) provides forgivable loans to small businesses to help cover up to eight weeks of payroll costs among other expenses, such as interest on mortgages and rent. Paycheck Protection ProgramĪnother opportunity that may lend you a helping hand is the Paycheck Protection Program. In some cases, employers may require staff to take vacation or paid time off if the company is closed or unable to operate temporarily due to a natural disaster or unexpected event, but the exempt employee must still receive his full guaranteed weekly salary. The general rule is that exempt employees must be paid their full salary for any workweek in which they perform any amount of work, while there may be a few cases in which deductions are allowed but you should check any additional obligations imposed by your state laws. You should still, however, determine if there are any additional pay obligations imposed by state laws. That means, if you are forced to close your business temporarily, you are not required to pay non-exempt employees for hours they are unable to work. You will be required to pay nonexempt employees only for hours that employees have actually worked. Department of Labor’s (DOL) Wage and Hour Division posted a helpful guide for employers that answers a number of questions related to how to manage payroll, wages and worked hours during emergencies. You may also have additional obligations depending on where you live, so it is extremely important to check with your state for additional information. These laws vary depending on how you categorize an employee, whether they are exempt or nonexempt. General rules under the Fair Labor Standard Act (FLSA)ĭuring this time of uncertainty, employees may not be fully working but that you must still be familiar with their compensation rights. The security of a paycheck is important, so in this article we’ll give you a few ideas to ensure there are no disruptions in payroll throughout the COVID-19 pandemic or in the event of any other natural disasters. When bad things happen there can be a great deal of uncertainty, and times like these can be a source of stress for many employees.Īs you are staying up-to-date with the news coverage on the COVID-19 outbreak and taking preventative measures to prioritize your health, you may be wondering what the best approach is to workers compensation and payroll.Īt Brink’s Money, we are thinking of you and want to help set up employees for financial success during this time. It is practically impossible to be fully prepared when a hurricane, earthquake, flood, fire or any other emergency occurs.
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