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Layoff Using Reduced Work Week Hours of 32 hours or 40 hours?
Ask the ExpertLayoff Using Reduced Work Week Hours of 32 hours or 40 hours?
hri_Admin asked 6 years ago
Our company has been on a reduced work week at 32 hours / week for over a year now. We are now starting into Layoffs and doing calculations I am inquiring if I use 32 hours / week for their Termination Notice and for Severance pay. (The employment contracts have been revised via letters to each employee stating reducing to 32 hours). Thanks, I appreciate your speedy response back, Erin
1 Answers
Glenn Demby answered 6 years ago
Administrator A week’s pay is calculated by: – Totalling the employee’s wages, excluding overtime, earned in the last eight weeks in which the employee worked normal or average hours; and – Dividing the total by eight. As such, you would then calculate based on 32 hours.