Handling Pay for Absent Exempt Employees with H1N1

Question:

We’re seeing more issues related to the H1N1 Flu and employee absenteeism. How do we handle pay for salary / exempt employees who are absent from work?

Answer:

There are three scenarios in which you might be concerned with how to handle pay for an exempt employee who is absent from work because of the H1N1 Pandemic Flu.

  1. The business is closed due to excessive absenteeism?
    • Pay the employee if the business is closed for less than a week; if the business is closed for a week or more, and if the employee does not work from home that week, arguably the employer does not have to pay the employee.
    • The best and recommended course is to pay the employee.
  2. The employee is sick from the Flu?
    • Typically if an employee is on FMLA leave, you don’t pay them. However, some companies have policies that provide for pay while employees are sick; in such cases, you must follow that policy and pay the employee.
    • For exempt employees, the rule is to pay them if they are sick. However, employers may make deductions for a full day’s absence due to illness if they have a bona fide plan, policy, or practice that provides compensation for loss of salary as a result of sickness or disability.
  3. The employee’s family member is sick and they have to stay home to provide care?
    • If an employee takes FMLA leave, they most likely would not be paid for the time off.

Under these unusual circumstances, a Flu of Pandemic proportion causing significant absenteeism, we recommend that you create a sick leave policy specific to the H1N1 Flu Pandemic. This enables you to “flex” your typical attendance policies to allow for the unusual amounts of absenteeism that you might not otherwise experience and allows you to spell out how absences will be handled.

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