The impact of the Corona Virus has affected several industries and businesses, specifically small to medium sized. As the world pivots and adjusts to this new normal of working from home, companies are struggling in finding ways to nurture their client relationships, protect their employees, and maintain normal business operations. So over here at FUND, we launched our popular FUND EDU sessions online via Zoom to provide the community with the resources and options that are available during this time.
Last week, Mary Kathryn Curry from Polsinelli Chicago office led a session on how to handle employee furloughs and temporary layoffs and the business owners’ responsibilities for implementing paid leave and vacation days.
We put together some short clips for you to review. Or, if you’d like to watch the full session, the full video is posted at the bottom.
Furlough and Layoff Advice
There is no legal process for a furlough or layoff, however here are some items to consider:
1. The decision makers need to think through how they are going to relay the message to your employee(s) while still upholding your company culture and climate
2. Employee(s) must not work during the furlough time period
3. Employee(s) are eligible for unemployment while being furloughed/ laid off
4. Keep up the communication with your workforce, make sure your furloughed employee(s) are current on the status of the companyMary Kathryn Curry, Shareholder, Polsinelli Chicago
How To Implement Pay Cuts & Shared Work
Pay cuts and shared work are additional options to reduce costs and maintain employees- here are a few steps to proceed with this decision:
1. The decision makers need to look at the financials and decide how to break down the pay cut among each employee.
2. Share a memo with your workforce and explain the company’s current financial situation, share your quarterly /yearly projections , and be as transparent as you can
3. Have a law firm review your memos and pay cuts to ensure you are legally providing the right information and that you don’t dip below minimum wage.Mary Kathryn Curry, Shareholder, Polsinelli Chicago