Posted on April 01, 2020

Rules Provide Direction for Employers

The U.S. Department of Labor (DOL) has issued temporary regulations to implement the paid leave mandates of the Families First Coronavirus Response Act (FFCRA). The regulations provide direction for administration of the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA).
 
The EPSLA requires that certain employers provide up to 80 hours of paid sick leave to employees who need to take leave from work for certain specified reasons related to COVID-19.
 
The EFMLEA requires that certain employers provide up to 10 weeks of paid, and two weeks unpaid, emergency family and medical leave to eligible employees if the employee is caring for his or her son or daughter whose school or place of care is closed or whose child care provider is unavailable for reasons related to COVID-19.
 
The DOL has provided additional information for employers and individuals about the FFCRA on its COVID-19 and the American Workplace website.

© 2020 HR 360, Inc.

Posted on April 01, 2020

Coronavirus Relief Law Includes a Variety of Changes Affecting Health Plans

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) into law to provide $2.2 trillion in federal funding to address the COVID-19 crisis. The CARES Act makes a variety of changes affecting health plans. These changes include: 

• Expanding the types of coronavirus testing that all health plans and health insurance issuers must cover without cost-sharing (such as deductibles, copayments or coinsurance) or prior authorization;  
• Accelerating the process that will require health plans and issuers to cover preventive services and vaccines related to COVID-19;
• Allowing telehealth and other remote care services to be covered under a high deductible health plan (HDHP) before the deductible is met, without affecting the HDHP’s compatibility with health savings accounts (HSAs); and
• Treating over-the-counter (OTC) medications, along with menstrual care products, as qualified medical expenses that may be paid for using HSAs or other tax-advantaged arrangements, such as health flexible spending accounts (FSAs) or health reimbursement arrangements (HRAs). 

© 2020 HR 360, Inc.

Posted on March 30, 2020

New FAQs on the FFCRA Address Small Employer Exemption

The U.S. Department of Labor (DOL) issued new FAQs that address the small employer exemption to certain paid leave requirements under the Families First Coronavirus Response Act (FFCRA). 

Small businesses with fewer than 50 employees may qualify for an exemption from the requirement to provide leave because a child’s school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons. To claim this exemption, an authorized officer of the company must determine that at least one of the following three conditions is satisfied: 

• The leave would result in the small business’s expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity;  
• The absence of the employee or employees requesting leave would entail a substantial risk to the financial health or operational capabilities of the small business because of their specialized skills, knowledge of the business or responsibilities; or  
• There are not sufficient workers who are able, willing and qualified, and who will be available at the time and place needed, to perform the labor or services provided by the employee or employees requesting leave, and this labor or these services are needed for the small business to operate at a minimal capacity.

Click here for the DOL’s FAQs. 

© 2020 HR 360, Inc.

Posted on March 27, 2020

Employer Notice, Fact Sheets, Q&As Available on DOL Webpage

Guidance materials on the new Families First Coronavirus Response Act (FFCRA) are now available for employers from the U.S. Department of Labor (DOL). Links to the materials, which explain how the law will be implemented and include required notices, can be found on a DOL webpage dedicated to COVID-19. Employers should monitor the webpage to stay apprised of the latest DOL guidance on the law, as the page is updated frequently.
 
The following resources are currently available on the DOL COVID-19 webpage:
 
Fact Sheets
Families First Coronavirus Response Act: Employee Paid Leave Rights (PDF)
    Spanish (PDF)
Families First Coronavirus Response Act: Employer Paid Leave Requirements (PDF)
    Spanish (PDF)
 
Questions and Answers
Families First Coronavirus Response Act: Questions and Answers
COVID-19 and the Fair Labor Standards Act: Questions and Answers
COVID-19 and the Family and Medical Leave Act: Questions and Answers

Posters
Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA)
Federal Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA)
Families First Coronavirus Response Act Notice – Frequently Asked Questions

Field Assistance Bulletin
Field Assistance Bulletin 2020-1: Temporary Non-Enforcement Period Applicable to the Families First Coronavirus Response Act (FFCRA)

© 2020 HR 360, Inc.

Posted on March 25, 2020

Coronavirus Response Act Applies to Leaves Taken April – Dec. 2020

The paid leave provisions of the recently enacted Families First Coronavirus Response Act will go into effect April 1, 2020, according to Q&As released by the U.S. Department of Labor (DOL). Specifically, the guidance states these provisions apply to leave taken between April 1, 2020, and Dec. 31, 2020. 

The Act includes two types of paid employee leave for reasons related to the coronavirus (COVID-19) pandemic:

• Expanded federal Family and Medical Leave Act (FMLA) leave to provide workers with partially paid leave for child care purposes. 
• Up to 80 hours of paid sick leave for specific reasons caused by COVID-19, including the employee’s own COVID-19 illness. 

Effective Date

The language of the Act states that the leave provisions take effect “not later than 15 days after the date of enactment.” The Act was passed on March 18, 2020. Sources had interpreted this language to mean the Act would take effect on April 2, 2020. The new guidance from the DOL clarifies that the leave requirements take effect April 1.

© 2020 HR 360, Inc.

Posted on March 18, 2020

Legislation Requires Two Types of Paid Employee Leave

On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (the Act) into law. The Act requires employers to provide paid leave for some employees related to the coronavirus (COVID-19) pandemic, among other measures. The Act takes effect no later than 15 days after it is signed by the president.

Paid Sick Leave
Among other measures, the law requires 80 hours of paid sick leave for government workers and employees of companies with fewer than 500 employees. Compensation caps apply.
 
Leave would be available to workers who: 

• Are or may be sick with COVID-19;
• Have to care for a family member with the illness; or
• Have a child whose school or child care facility is closed (or whose child care provider is unavailable) due to the illness.

Paid FMLA Leave
The bill would also require partially paid leave under the Family and Medical Leave Act when an employee is unable to work or telework due to a school or child care closure related to the coronavirus. This benefit would be available to individuals who have worked for their employer for at least 30 days.
 
Benefits under the law expire Dec. 31, 2020.

© 2020 HR 360, Inc.

Posted on March 18, 2020

Health Plans Must Cover COVID-19 Testing At No Charge

On March 18, 2020, President Trump signed the second coronavirus relief measure into law – the Families First Coronavirus Response Act (Act).

Effective immediately, the Act requires group health plans and health insurance issuers to cover COVID-19 testing without imposing any cost sharing (such as deductibles, copayments or coinsurance) or prior authorization or other medical management requirements. This coverage mandate applies to the following health plans and issuers, regardless of grandfathered status under the Affordable Care Act (ACA): 

• All fully insured group health plans
• All self-insured group health plans
• Health insurance issuers offering group or individual coverage 

This coverage mandate does NOT require health plans and issuers to cover COVID-19 treatment at no charge. Exact coverage details for COVID-19 treatment, including any cost-sharing amounts, will vary by plan.

© 2020 HR 360, Inc.

Posted on March 17, 2020

New Changes Scale Back Proposed Employee Leave

On March 16, the U.S. House of Representatives passed technical corrections to the coronavirus relief bill, called the Families First Coronavirus Response Act. The bill must also be passed by the Senate, and signed by the president, to become law.
 
Paid Sick Leave
Among other measures, the proposed legislation as it currently stands requires 80 hours of paid sick leave for government workers and employees of companies with fewer than 500 employees. Compensation caps apply.
 
Leave would be available to workers who: 

• Are or may be sick with COVID-19;
• Have to care for a family member with the illness; or
• Have a child whose school or childcare facility is closed (or whose childcare provider is unavailable) due to the illness.

Paid FMLA Leave
The bill would also require partially paid leave under the Family and Medical Leave Act in situations where an employee is unable to work or telework due to school or child care closure related to coronavirus. The original bill allowed leave in additional circumstances.

This benefit would be available to individuals who have worked for their employer for at least 30 days.
 
The bill would sunset Dec. 31, 2020.

© 2020 HR 360, Inc.

Posted on March 16, 2020

Senate Vote Expected This Week

The U.S. House of Representatives passed the Families First Coronavirus Response Act on March 14, 2020, following negotiations with the White House. The U.S. Senate is expected to vote on the bill this week.
 
In addition to funding for economic assistance and COVID-19 testing, the bill—if passed into law—would provide workers with the following support:

• 14 days of paid sick leave, at two-thirds (or more) of their regular rate of pay, for government workers and employees of companies with fewer than 500 employees. Leave is available to workers who are sick, have to care for a sick family member or have a child whose school or childcare facility has closed due to the coronavirus (COVID-19).
• Expansion of the FMLA for employees of companies with fewer than 500 employees, requiring paid leave at the two-thirds rate after 14 days.
• A tax credit for employers that provide paid sick leave benefits required by the bill.
• Additional funding for state unemployment programs.

 

© 2020 HR 360, Inc.

Posted on March 14, 2020

Bill Would Provide Free Testing, Paid Sick Leave, Other Benefits

The White House and U.S. House of Representatives have reached a deal that would involve several billion dollars in federal spending and provide free medical testing, paid leave, food assistance for poor families, and other aid for people affected by the coronavirus (COVID-19) outbreak. The deal was announced by House Speaker Nancy Pelosi on March 13.
 
The House was expected to pass the bill, called the Families First Coronavirus Response Act, following the announcement. The bill would then move to the Senate for a vote on Monday.
 
The announcement came just hours after President Trump declared a national emergency due to the growing spread of the coronavirus.

© 2020 HR 360, Inc.

Posted on March 12, 2020

Requirement Applies to Employers in Seven Industries

Effective immediately, Colorado employers in the following industries must give employees up to four days of paid sick leave for testing for coronavirus (COVID-19):

• Leisure and hospitality
• Food services
• Child care
• Education, including transportation, food service, and related work at educational establishments
• Home health, if working with elderly, disabled, ill, or otherwise high-risk individuals
• Nursing homes
• Community living facilities

The requirement was contained in emergency rules issued March 11 by the Colorado Department of Labor and Employment (CDLE). Employees are eligible if they have flu-like symptoms and are being tested for COVID-19. The paid leave ends if the employee receives a negative test result.

For further information, please consult FAQs from CDLE about the rules. 

© 2020 HR 360, Inc.

Posted on March 12, 2020

FAQs Address Employee Leave, Pay and Other Issues

The California Labor Commissioner’s Office has issued Coronavirus Disease (COVID-19) FAQs on laws it enforces. The FAQs address issues such as leave for employees under quarantine or at risk of exposure, questioning employees about their travel to high-risk areas, and the effect of operational shutdowns on employee compensation.
 
The FAQs state, among other things, that:

• Employees may use California paid sick leave due to COVID-19 illness.
• Preventive care under California paid sick leave may include self-quarantine if recommended by civil authorities, and possibly in other situations; and
• Other leave may be available, depending on employer policies.

The FAQs also provide information on remote participation in actions filed with the Labor Commissioner’s Office.
 
Employers subject to laws enforced by the California Labor Commissioner’s Office should review the FAQs and ensure their policies comply with this new guidance.

© 2020 HR 360, Inc.

Posted on March 11, 2020

Q&As Apply Broadly to Public Health Emergencies 

The U.S. Department of Labor (DOL) has issued Q&As on the federal Family and Medical Leave Act in the context of COVID-19 and other public health emergencies. Under the FMLA, covered employers must provide eligible employees with up to 12 weeks of job-protected, unpaid leave for specified family and medical reasons, which may include the flu where complications arise. Employees on FMLA leave are entitled to the continuation of group health insurance coverage under the same terms as before they took leave.
 
The Q&As include the following key points, among others:

• The FMLA provides leave for an employee’s serious health condition or to care for a family member’s serious health condition;
• The FMLA does not provide leave for avoiding the workplace out of fear of contracting a disease.
• The FMLA does not require leave for employees caring for dependents who have been dismissed from school or child care.
• Employers requiring a doctor’s note should consider that healthcare resources may be overwhelmed during a pandemic, making it difficult for employees to obtain appointments or verification that they are no longer contagious.

Many of the DOL’s answers encourage employers to consider flexible leave policies for their employees. The Q&As also address the application of the Americans with Disabilities Act to employee leave issues.

 

 

 

© 2020 HR 360, Inc.

Posted on March 11, 2020

HDHPs Can Pay Benefits for COVID-19 Without a Deductible

On March 11, 2020, the IRS issued Notice 2020-15 to advise that high deductible health plans (HDHPs) can pay for COVID-19 testing and treatment before plan deductibles have been met, without jeopardizing their status. According to the IRS, this also means that individuals with HDHPs that cover these costs may continue to contribute to their health savings accounts (HSAs). 

The IRS also noted that any COVID-19 vaccination costs count as preventive care and can be paid for by an HDHP without cost sharing.

To qualify as an HDHP, a health plan cannot pay medical expenses (other than preventive care) until the annual minimum deductible has been reached. IRS Notice 2020-15 provides an exception to this general rule to remove financial barriers that might otherwise delay testing for and treatment of COVID-19.

Click here for more information. 

© 2020 HR 360, Inc.

Posted on March 05, 2020

Employers Must Do What They Can to Maintain a Safe and Healthy Work Environment

As the number of reported cases of the novel coronavirus (COVID-19) continues to rise, employers are increasingly confronted with the possibility of an outbreak in the workplace. 

Employers are obligated to maintain a safe and healthy work environment for their employees, but they are also subject to a number of legal requirements protecting workers from discrimination. Compliance issues to consider include: 

• The general duty to provide employees with safe workplace conditions imposed by the federal Occupational Safety and Health Act;
• Protection against disability discrimination (including disability-related inquiries and medical examinations) under the Americans with Disabilities Act;
• Requirements set by federal and state employee leave laws; and
• The compensation of individuals who miss work due to COVID-19.

Resources

Federal and state governments are actively publishing information on this development. Reliable resources include the materials listed below: 

• U.S. Centers for Disease Control (CDC): Coronavirus Disease 2019 (COVID-19) Situation Summary
• World Health Organization (WHO): Coronavirus disease (COVID-19) advice for the public
• Occupational Safety and Health Administration (OSHA): Safety and Health Topics: COVID-19

Additional resources and information can be found on this page. 

Action Steps for Employers

To address the impact of COVID-19 in the workplace, employers should:  

• Closely monitor the CDC, WHO, and state and local public health department websites for information on the status of COVID-19;  
• Proactively educate their employees on what is known about the virus, including its transmission and prevention;
• Establish a written communicable illness policy and response plan that covers communicable diseases readily transmitted in the workplace; and
• Consider measures that can help prevent the spread of illness, such as allowing employees flexible work options like working from home.  

© 2020 HR 360, Inc.

Posted on March 02, 2020

New Rate Becomes Effective Jan. 1, 2021

The Vermont state legislature has approved two more increases to the state’s minimum wage rate, as shown below: 

• A new rate of $11.75 per hour becomes effective Jan. 1, 2021; and 
• A new rate of $12.55 per hour becomes effective Jan. 1, 2022. 

Beginning in 2023, the state’s minimum wage rate will be adjusted annually to reflect the cost of inflation. 

Tipped Employees

The minimum wage rate for service or tipped employees in Vermont must be at least equal to one-half of the state’s minimum wage rate. A service or tipped employee in Vermont is a hotel, motel, tourist place or restaurant employee who customarily and regularly receives more than $120 per month in tips. 

Employers are required to make up the difference between the minimum wage rate and a tipped employee’s earnings if the tipped employee’s tips and cash wage are below the state’s minimum wage rate.

© 2020 HR 360, Inc.

Posted on February 26, 2020

The New Joint-employer Standard Becomes Effective Apr. 27

On Feb. 25, 2020, the National Labor Relations Board (NLRB) announced it's changing the standard it uses to determine whether employers are considered joint employers under the National Labor Relations Act. Specifically, the NLRB is abandoning its decision in Browning-Ferris Industries of California, Inc. to return to the previous standard of “substantial direct and immediate control” over essential terms and conditions of employment of another employer’s employees.

The New NLRB Joint-employer Standard

The new rule focuses on whether there is substantial control over essential terms and conditions of employment. Essential terms and conditions include wages, benefits, hours of work, hiring, discharge, discipline and supervision. Substantial means regular or continuous consequential effect (not sporadic, isolated or minimal).

Joint employment situations can happen when two or more employers share personnel hiring, supervision and management practices. Whether joint employment is by design or unintentional, joint employers are equally:

• Required to bargain with the union that represents jointly employed workers; 
• Liable for unfair labor practices committed by other joint employers; and 
• Subject to union picketing or other economic pressure if there is a labor dispute.

Next Steps for Employers

Employers should review the final rule and determine whether they are in joint employment relationships based on the updated standard. Employers in these relationships should also determine whether the other joint employers in the relationship are in compliance with labor and employment laws.

© 2020 HR 360, Inc.

Posted on February 21, 2020

The Court's Decision Is Enforceable and Retroactive

The California Supreme Court issued a decision in Frlekin v. Apple, Inc. (Frlekin) clarifying that, under state law, compensable time or “hours of work” includes the time an employee spends  on the employer’s premises waiting for, and undergoing, mandatory exit searches of bags, packages, or personal technology devices (such as iPhones) that are voluntarily brought to work purely for personal convenience.

Hours Worked

Under California’s Wage Order 7 “hours worked” includes the time during which an employee is subject to the control of an employer. The court in this case concluded that an employer is controlling an employee’s time when it requires the employee to submit to an exit search before exiting the employer’s premises. As a result, the court determined that the time employees spend undergoing exit searches is compensable as “hours worked” under California labor law.

Finally, the California Supreme Court also indicated that the Frlekin decision applies retroactively, meaning that employers that adjust their security screening and other off-the-clock practices may also need to go back a few years to determine whether they are liable for unpaid wages to their employees.

• Employers should become familiar with the Frlekin decision and determine whether they need to adjust their security screenings and any similar off-the-clock practices.
• Employers should determine whether they are retroactively liable for unpaid wages to their employees for onsite, employer-controlled, off-the-clock practices.
• If policy, procedure, employer practice and wage payment adjustments become necessary, employers should conscientiously determine the best way to communicate any updates to affected employees.

© 2020 HR 360, Inc.

Posted on February 13, 2020

Disclosures Due Within 60 Days of Beginning of Plan Year

Employers that offer prescription drug coverage to Medicare-eligible individuals are required to complete an online disclosure form with the Centers for Medicare & Medicaid Services (CMS) on an annual basis and at other select times, indicating whether the plan's prescription drug coverage is creditable or non-creditable.

The plan sponsor must complete the online disclosure within 60 days after the beginning of the plan year. For calendar year health plans, the deadline for the annual online disclosure is normally March 1. However, since 2020 is a leap year, the deadline is Feb. 29, 2020.

Employers that are required to report to CMS should work with their advisors to determine whether their prescription drug coverage is creditable or non-creditable. They should also visit CMS' creditable coverage website, which includes links to the online disclosure form and related instructions.

© 2020 HR 360, Inc.

Posted on February 11, 2020

Notices Have Updated Expiration Dates of Jan. 31, 2023

The Department of Labor (DOL) has released updated versions of its model COBRA General Notice and model COBRA Election Notice, both with an expiration date of Jan. 31, 2023. As a reminder, these notices are required to be provided as follows:

• Plan administrators must provide covered individuals with a general notice within 90 days after their group health plan coverage begins.
• Plan administrators must provide qualified beneficiaries with an election notice within 14 days after receiving notice of a qualifying event (44 days under certain circumstances).

Click here for more information.

© 2020 HR 360, Inc.