Making Do With Less (CONT’D FROM PAGE 28)
Board Converting NEWS INTERNET DIRECTORY
ly yes, hours can be reduced. For employees who are clas- sified as exempt from overtime wages, you may be able to reduce their hours, depending on the circumstances, but reducing their pay is more complicated, as discussed below in response to the next question. Depending on how long cuts last, making significant cuts to employees’ work hours (generally more than 50 percent) can result in employers needing to comply with notification obligations under the federal WARN Act and state equivalents. Reducing hours may also make em- ployees eligible for unemployment insurance benefits, depending on the number of hours cut and the specific state’s unemployment regulations, for the work hours lost. For some employers, this may be something you wish to tell your employees, to help cushion the blow to employ- ees of reduced hours and pay. In addition to the legal considerations, there may be practical considerations at play, such as the impact on morale of reducing pay across the board versus other cost-savings measures. On the other hand, reducing pay may be more attractive than letting people go. 3. Can I reduce an employee’s pay rate? For non-exempt employees (whether they are paid hourly or on a salary), the short answer is yes, you can reduce their pay rate, so long as you pay employees for all actual hours worked at no less than the minimum wage applicable to their work lo- cation. For example, California’s minimum wage is $13.00 per hour for large employers and New York City’s is $15.00 per hour. Companies must track hours worked for non-ex- empt employees so that the company can be sure they are being properly paid for all hours they work. For employees who are treated as exempt from over- time and required to meet a salary basis test, by law their salary must remain the same each work week, above federal, state and local minimum threshold requirements, so reducing pay could potentially undermine the exemp- tion and require they be paid overtime wages. That said, if hours are being reduced and the employee will not be working more than 40 hours in a workweek, that may not be an issue. However, the change-over can be tricky and should be done cautiously, with the assistance of expe- rienced employment counsel before being enacted, as there are several potential legal pitfalls when reducing an exempt employee’s salary. 4. What’s the difference between a furlough and layoff? A furlough is a temporary work stoppage with the expec- tation the employee will be brought back to work, whereas a layoff results in the end of employment. Both are usually done for economic reasons and may involve large num- bers of employees. In some situations, a furlough can be treated the same as a layoff in the eyes of the law, however there may be some distinctions that can affect things like
GF PUHL www.gfpuhl.com
GF PUHL designs, manufactures and installs air conveyed scrap & dust collection systems for the packaging and cor- rugated industries. With 36 years of experience, USA and International. Re-manufactured balers, filters, blowers and shredders available.
SAUER SYSTEM www.sauersystem.com
Sauer provides intelligent solutions for scoring, slitting, slit-scoring, and perforating on corrugators and floor slitters; and glue tab cutting, creasing, slotting, trimming and scrap chopping on presses. New, featured offerings include FRX Adjustable Folding Rail System and G3 Scoring System: the latest proven creasing technology on the market.
STAFFORD GROUP www.go2stafford.com
Interactive website for Stafford Corrugated Products and Stafford Cutting Dies. Featuring online ordering of replace- ment parts. Also, visitors can automatically calculate sheet size for most die-cut standards.
SUN AUTOMATION GROUP ® www.sunautomation.com
SUN Automation Group® is a global industry leader provid- ing corrugated box plants with innovative equipment for feeding, printing and converting. The wide range of prod- ucts are proven solutions for increasing production, effi- ciency, and profitability. With 24/7 on-site technical support, SUN Automation is known for its great service and care. THACKER INDUSTRIAL SERVICE COMPANY www.thackerindustrial.com Specializing in corrugated machinery, TISCO offers quali- ty-made products, support services, and more. TISCO has established a reputation of dependability, not only in the product, but in continued service support. With more than 25 years of experience, TISCO installs equipment and ma- chinery, moves or sets up entire plants, rewires and rebuilds - all over the world. TISCO maintains a full fleet of trucks and equipment to perform to your requirements, anywhere, anytime. VT GROUP www.vtgrouponline.com VT offers prepress services for the POP display and corru- gated shipping container industry including graphic design, optimized digitally imaged printing plates and innovative pre-mounting solutions. Our large-format digital printing fa- cility (Digital Impact) is a leading short-run manufacturer of distinctive POP displays and signage where litho-like graph- ics are preferred.
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March 30, 2020
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