If an employer elects to reduce hours rather than take the PPP or lay off workers, the Employer does not have control over determinations made by the Employment Development however, as soon as an employee loses any time from work due to reduced work, we suggest s/he file for unemployment benefits.

 When reducing employee’s work hours, many states including CA, NV and CO offer a helpful program through EDD is called Work Sharing that will provide a higher level of benefit to workers with reduced hours enabling them to supplement their reduced hours with Unemployment Benefits.

Depending on how many hours the employee is working, consider how it may impact healthcare benefits, PTO accruals, holidays, meals and breaks, and other benefits.

In states where rest periods are mandatory for those who work more than 6 hours and the employee will not work more than 6 hours in a day, the employee and company can mutually agree to waive the meal period using a meal period waiver (be sure to document it!)

Synergy Solutions is an executive and contract search firm focused on roles within the technology sector. If you have questions regarding this article or would like to discuss strategy on open roles at your company, please contact us and someone will get back to you with the next 24 hours.