Greater New York Automobile Dealers Association

Coronavirus Resources for Dealers

EMPLOYMENT LAW RESPONSIBILITIES

There are several employment laws to keep in mind as you prepare for any disruption at your dealership from the coronavirus, especially managing payment of wages for exempt and hourly employees.

Below are some of the rules along with answers to some common questions that dealers are asking:

Sick/Quarantined Employees

If an employee is out because they are, or a family member is, sick with the coronavirus, all employees should be paid according to the dealership’s sick/paid time off policies.

After employees exhaust any paid leave, the dealership does not have to pay them.

Dealership Closure

If your dealership is forced to close due to reasons related to the coronavirus, all employees should be paid according to the dealership’s sick/paid time off policies.

• Hourly Employees: You must pay hourly employees only for the actual hours that they work. So, if the dealership is closed for longer than their sick or vacation time, you do not have to pay them.
  
  
• Exempt Employees: You do not have to pay them if the dealership is closed for longer than their sick or vacation time if:
  • The dealership is closed for at least an entire work week and
  • The employee performs no work.

After employees exhaust any paid leave, the dealership does not have to pay them.

Working from Home

If your dealership has an agreement in place with employees allowing them to work from home while they are sick or quarantined, you must pay them for any work they do from home.

• Salaried employees must be paid their full weekly salary if they perform any work during a given week.
  
  
• Hourly employees must be paid for actual time worked.

If you are going to allow hourly or exempt employees to work from home while the dealership is closed, you should require them to keep accurate records of their hours worked and tasks completed.

For exempt or nonexempt employees, any unpaid leave of absence is likely job-protected, meaning employees cannot be terminated while out.

**If your dealership has a union, please always check the CBA first as many union contracts have unique pay requirements**