Shutdowns

Mimi

Does anyone have suggestions as to how to handle employees working in satellite businesses on our payroll - vending, cafeterias, food lines - when those satellite business regularly shut down for a week or two every year for maintenance, et cet. Is there any problem with requiring our employees to take their vacations at those same times and any ideas on what we can do with employees eligib
le for only a week when the plant shuts down for 2 weeks to try and avoid paying unemployement ? Suggestions welcome ---

Brad Forrister

It's okay under the federal Fair Labor Standards Act to require that employees take vacation time at a particular time, as for a plant shutdown. Many employers have a one or two week annual shutdown, providing vacation pay to cover the time. But if you don't provide vacation pay, the employees typically would be eligible for unemployment benefits.

Sue

This probably varies by state. In Wisconsin we can force employees to use vacation during shut downs. If the time is unpaid, they can collect unemployment. I would check with your state.

Amyl

Sue, can you give me a citation to something that talks about unemployment insurance in Wisc. in the context of a mandatory company shutdown. I've been researching the state website and figured this was probably the case, but I'd like to see something that addressed this scenario directly. Thanks