Qualified Individual - Reduced Hours

[Gilmore]

Do you think it was intentional or an oversight that the criteria for a qualified individual includes reduced work hours, but not reduced compensation?

If a salaried employee is required to work the same number of hours at a reduced salary are they out of luck to be considered a qualified individual?

Thanks.

[Mike Preston]

Can't believe they would be out of luck.  And if the current interpretation is that they would be, then the IRS will "clarify" things at some point to confirm the current interpretation is wrong.  Betcha.

[Gilmore]

Sounds good to me Mike.  Thank you for responding.

[Peter Gulia]

If Congress’s delegation to the Secretary of the Treasury is not contrary to law, he (or his delegate) has some power to “determine[]” “other factors[.]”  CARES Act § 2202(a)(4)(A)(ii)(III).

 

A question arises only if an administrator or other decision-maker does not accept the claimant’s certification (or a claimant does not sign a certification).

[Larry Starr]

20 hours ago, Gilmore said:

Do you think it was intentional or an oversight that the criteria for a qualified individual includes reduced work hours, but not reduced compensation?

If a salaried employee is required to work the same number of hours at a reduced salary are they out of luck to be considered a qualified individual?

Thanks.

I believe they will qualify under the definition below.  The participant will certify that they have "adverse financial consequences" and the employer will be able to accept that no questions asked.  That's the practical answer. At some point, I expect the "other factors" will cover this, but for practical purposes I don't think it will matter.  If the employee certifies, who is ever going to check?

Who experiences adverse financial consequences as a result of:
 

• being quarantined, furloughed or laid off, or having work hours reduced due to COVID-19
   
• being unable to work due to lack of child care due to COVID-19;
   
• closing or reducing hours of a business owned or operated by the individual due to COVID-19; or
   
• other factors determined by the Secretary of the Treasury.