In these very tough and difficult times, many practices are making the difficult decision to downsize staff.
Some practices are reducing employee hours to as much as 50% of their current schedule.
Some practices are terminating employees.
Some practices are furloughing employees with the intent of bringing them back when the current crisis ends.
Some practices are using a combination of all of the above.
In the first stimulus package passed by Congress, there is a change in the law that allows practices to keep furloughed employees on the practice health plan as long as the premiums are paid by the practice. If your practice has a cost share program, the practice would collect the employee share of the premium. This furlough event does not trigger a COBRA event.
The above is different from termination. With termination, a COBRA event is triggered and if you rehire at a later date, this become a new hire depending on the lapse.
Each insurance carrier has set up guidelines for all of the above.
IMG of SC, a Brown and Brown company has provided us a link to a fantastic webinar that explains all of the above. Please view the webinar as a tool as you make your difficult decisions as to how you will be handling your employees during this tough period of time.
Coming SOON: Unemployment on steroids that will pay your employees more than their current salary if the are furloughed or laid off.