Orthotown May 2020 - 16

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Unemployment Vs. Keeping Staff On
Townies talk about how to handle staffing during and after the pandemic

straight toothener
Member Since: 12/30/04
Post: 1 of 7

With COVID-19 office shutdown and April 1 sick leave pending, I'm wondering if anyone
has looked at the numbers with regard to laying off and filing for full unemployment vs. keeping
staff on. I heard some discussion about how it may be to the employees' advantage if they make
under a certain amount to go on full unemployment because the federal stimulus is kicking in for
unemployment in addition to state funds. I'm in California and appreciate any thoughts. ■
3/29/2020

ucla98
Member Since: 09/28/07
Post: 2 of 7

I plan to close all four of my offices until April 30. I continue to pay my two F/T employees
(office manager + receptionist) but at reduced work hours (32 hours a week, instead of 40-45
hours a week). All six P/T chairside assistants will stay home during the shutdown. The total rent
for all four offices is $6,700/month. Phone, electricity, and other bills are around $600-1,000
per month. My offices continue to receive payments from patients' insurances, which should be
enough to cover all these fi xed expenses.
Hopefully, the stimulus checks will be sent to all my staff soon enough so they can pay their
bills for this coming month. ■
3/30/2020

tooth1
Member Since: 04/26/09
Post: 3 of 7

I've laid off everyone, including myself.
Hourly employees will almost certainly make more under unemployment than if you even
pay them 100% of their normal rate. Example, my lowest-paid employee (my wife) will get $235
in unemployment benefits for last week before the CARES Act kicked in. My current state will
accept CARES starting this week (March 29-April 4) and CARES will provide least $600 on
top of what she was getting. That means $835 for the week. We work only 32 hours so that comes
out to $26.09/hour and she was getting paid $10/hour before. So, yes, it's in their financial best
interest to collect unemployment. That will last 16 weeks while FFCRA is at best 100% for two
weeks and then 66% for 10 more (12 total).
While I have laid off everyone, it leaves me hanging on what the heck I'm supposed to do for
the SBA Economic Injury Disaster Loan and the upcoming Paycheck Protection loans. Pretty
sure they've been pretty clear that if you lay off everyone you won't be able to get those loans or
won't have them forgiven. However, I've only furloughed them. Yes, that's a temporary layoff. I
still want to hire them back. So, those details haven't been provided yet. We're just going to have
to see how that goes.
Also, once the office is up and running, my girls are going to be missing their unemployment
checks. They have to get stuck making "normal" wages once again. ■
3/30/2020

How have you handled staffing during COVID-19?
This conversation started in late March, and as events changed, so did how the
participants planned for their future. To join the conversation about how you're
approaching this unprecedented situation, and to glean advice from other
orthodontists, head to orthotown.com/messageboard.

MAY 2020 // orthotown.com

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Orthotown May 2020

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