vesting and coronavirus

i don't think the pandemic makes a difference on this but if an employee is paid during the pandemic but doesn't work and they don't work 1000 hours, do they get a year of service for vesting?  plan defines a year of service as 1000 hours.  

What is the plan’s definition for an hour of service?

Does it include an hour for which an employee is paid (or entitled to payment) “on account of a period of time during which no duties are performed” because of a layoff?

29 C.F.R. § 2530.200b-2(a)(2)

https://www.ecfr.gov/cgi-bin/text-idx?SID=41f0127c8a6a1ed75938128d32b82deb&mc=true&node=se29.9.2530_1200b_62&rgn=div8

18 minutes ago, Peter Gulia said:

What is the plan’s definition for an hour of service?

 

Does it include an hour for which an employee is paid (or entitled to payment) “on account of a period of time during which no duties are performed” because of a layoff?

 

29 C.F.R. § 2530.200b-2(a)(2)

https://www.ecfr.gov/cgi-bin/text-idx?SID=41f0127c8a6a1ed75938128d32b82deb&mc=true&node=se29.9.2530_1200b_62&rgn=div8

it includes hours they are paid and also says includes for payment no duties  but no duties. so i guess that is the answer.

2 minutes ago, Scuba 401 said:

it includes hours they are paid and also says includes for payment no duties  but no duties. so i guess that is the answer.

I bet your language limits hours credited for time not actually worked only up to 500 hours and only to prevent a break in service  If he doesn't have a break in service, no hours are credited.  Is that what your document actually says?

2 minutes ago, Larry Starr said:

I bet your language limits hours credited for time not actually worked only up to 500 hours and only to prevent a break in service  If he doesn't have a break in service, no hours are credited.  Is that what your document actually says?

yes no more than 501.   

so if they get paid for three months or six months they still only get 501 hours?

An employer could amend its plan before the end of the current plan year to lower vesting for just 2020 to require fewer than 1000 hours of service if desired.  The proactive suggestion to consider doing so might be appreciated!

Just now, MWeddell said:

An employer could amend its plan before the end of the current plan year to lower vesting for just 2020 to require fewer than 1000 hours of service if desired.  The proactive suggestion to do so might be appreciated!

true. but if they don't work but get paid for 3 months or 6 months the most they can get is 501 under that section correct?

35 minutes ago, Scuba 401 said:

true. but if they don't work but get paid for 3 months or 6 months the most they can get is 501 under that section correct?

Read Larry's message again.  Slowly.  Carefully.  Then see what the document says.  Slowly. Carefully.

17 hours ago, Scuba 401 said:

true. but if they don't work but get paid for 3 months or 6 months the most they can get is 501 under that section correct?

It depends on what the (now amended) plan document says.  The plan document could be amended to grant a full year of vesting service for 2020 even if there were zero hours of service if desired.

Be careful. The rules differ for an unpaid leave vs paid leave. For an unpaid leave you only get the hours to prevent a break. For a paid leave you get up to 501 hours for the non-performance of duties. But that gets added to your actual hours and can put you over 1000 hours. In other words, the paid leave is not just to prevent a break-in-service.