Home>Levelset Community>Legal Help>Are we required to pay all hourly employees 40 hours or only for hours worked?

Are we required to pay all hourly employees 40 hours or only for hours worked?

We are a subcontractor that does underground utilities in So Cal. Sometimes our crews work less than 40 hour weeks. If we receive a payroll protection loan are we obligated to pay our employees 40 hour weeks even if they do not work 40 hours ? Are we required to pay for rain days, or other project delays not related to the COVID-19 pandemic?

1 reply

Apr 23, 2020

Thank you for your question! Under the Paycheck Protection Program, you can receive a loan up to 2.5x your average monthly payroll over the previous 12 months. This includes hourly wages. In order to be eligible for loan forgiveness, you must spend at least 75% of the loan proceeds on payroll. This includes hourly wages. How you allocate labor hours is up to your business as long as you meet the requirement of 75% if loan proceeds going towards approved payroll costs. You can apply for PPP SBA Loans directly through Levelset here.

0 people found this helpful

Helpful