Today we notified all employees of a 1/3 reduction in work hours and pay.
Most people were sympathetic and grateful that they did not get laid off.
Some have requested furlough but we have only discussed verbally with them.
However the latest Cares Act which was enacted today, would allow Furloughed employees to gain federal / state unemployment benefits at 2/3 of their wages rate AND now an additional $600 per month paid by the stimulus bill!!
For most hourly employees this amounts to about 60K per year (and not having to work)!!!
Any and all of our employees would and should request furlough if that is the case!
Senator Lindsey Graham was very against this latest provision in the bill and even stated that this incentivizes employees not to work and receive unemployment pay way above their employment pay! See you the following link:
Therefore we are considering a sudden about face and informing (requiring) employees that everybody has their previous work hours, pay rate and benefits.
If we do this though, we will not be able to continue to you survive our 59K biweekly payroll over the unforeseeable future.
If they resign or we lay them off, then WE are stuck paying their unemployment benefits!
This is a real conundrum!
Is anybody else experiencing this???
Small business owners should be furious about this and very worried!
Are we missing something?