Can Employers Reduce Pay If an Employee Works at Home?

 In Employees, Human Resources, Managing COVID-19, Payroll

If telework is being provided as a reasonable accommodation for a qualified individual with a disability, or if required by a union or employment contract, then you must pay the same hourly rate or salary.

If this is not the case and there is no applicable contract, under the FLSA, employers generally have to pay employees only for the hours they actually work, whether at home or at the employer’s office.  However, even in pandemic-related cases, the FLSA requires employers to still pay nonexempt workers at least the minimum wage for all hours worked, and at least time and one half for hours worked beyond 40. Salaried exempt employees generally must receive their full salary in any week in which they perform any work, subject to certain very limited exceptions.

If the Service Contract Act (SCA) or state or local laws regulating the payment of wages also apply, nothing in the FLSA or its regulations or interpretations overrides or nullifies any higher standards provided by such other laws or authority.

This is just a summary. For your particular situations, be sure to get professional advice.

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