Workforce Bulletin

On March 30, 2020, New Jersey Governor Phil Murphy and Superintendent of the State Police Colonel Patrick Callahan (who also acts as the State Director of Emergency Management) issued Administrative Order 2020-6  providing additional guidance regarding how certain businesses may operate under Gov. Murphy’s Executive Order 107 (which we wrote about here).  The Administrative Order clarifies and directs that:

• Individual appointments to view real estate with realtors by individuals or families shall be considered essential retail business, but that open houses are still ...

Sometimes a crisis can be an opportunity to embrace new technologies and changes that were already on the horizon – albeit at a much more expedited pace.  As employees are required to work remotely and practice social distancing due to the COVID-19 pandemic, the federal government and several state governments (including New York and New Jersey) are moving (New York more quickly than New Jersey) to enable remote online notarization and keep businesses operating.

A Potential Federal Solution

On March 18, 2020, Senator Kevin Kramer, R-N.D. and Mark Warner, D-Va, introduced ...

In a matter of weeks, COVID-19 has changed the workplace.  Travel restrictions, shelter-in-place orders, and mandatory closures have meant that it is far from business as usual for nearly all employers.  The unprecedented events of the last few weeks have forced many employers, facing major business disruptions or closures, to make tough decisions about hiring, layoffs, furloughs, and compensation.

Some of these employment decisions may implicate written employment contracts and collective bargaining agreements that contain “force majeure” clauses that excuse ...

A post on the Health Law Advisor blog will be of interest to many of our readers: “Coronavirus and Cash Shortfalls – What Can You Do to Mitigate the Effects of Coronavirus on Your Organization’s Financial Health?,” by attorney David E. Weiss of Epstein Becker Green.

Following is an excerpt:

The coronavirus is having a direct effect – financial and otherwise – on nearly every business.  While the long-term effects of the global pandemic will be significant and far-reaching, the short-term financial consequences to businesses, due to expected cash shortfalls, could ...

On March 13, 2020, Governor Greg Abbott declared a State of Disaster in Texas due to COVID-19. Subsequently, on March 19. 2020, Governor Abbott issued a Public Health Disaster Declaration, and an Executive Order, which, among other things, prohibited congregating in groups consisting of more than ten people, and closed all Texas restaurant dining rooms [1] bars, gyms and schools, effective March 20, 2020.  Governor Abbott has refrained from issuing a statewide shelter-in-place order, and has instead left the decision up to city and county leaders.  In the days that followed, and ...

New York State has issued guidance in the form of Frequently Asked Questions (“FAQs”) regarding the State’s new COVID-19 Leave Law (the “Law”). As we have reported, the Law requires New York employers to provide certain employees who are under a COVID-19-related quarantine or isolation order with either paid or unpaid sick leave, depending on the employer’s size and net income. The FAQs provide answers to more than 30 questions regarding the Law’s mandates on benefits, eligibility, the application process, disputes, and the complaint process.

For example, the FAQs ...

[Updated on April 29, 2020]

On March 25, 2020, by signing legislative bill S2304 into law, Governor Philip Murphy expanded the availability of benefits under the state’s Temporary Disability Insurance (“TDI”) and Family Leave Insurance (“FLI”) programs to employees impacted by epidemic-related illnesses such as COVID-19.  The new law (“Law”) provides numerous key changes to the existing statutory scheme for state-issued disability insurance benefits, family leave insurance benefits, and use of accrued paid sick time.

Expanded Permissible Uses for Earned ...

The Families First Coronavirus Response Act (the “Act”), which we detailed in a previous Advisory, requires private employers with fewer than 500 employees (“covered employers”) to provide paid sick leave (“Emergency Paid Sick Leave”) and family leave (“Public Health Emergency Leave”) for certain COVID-19 related absences and includes a tax credit for employers for the cost of the paid leave.

As covered employers prepare to meet these requirements, questions have arisen related to the payroll tax relief associated with these payments.  This update addresses ...

On March 24, 2020, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) issued initial guidance (“Guidance”) on the Families First Coronavirus Response Act (“FFCRA” or the “Act”), which we detailed in a previous Advisory.  In short, the Act requires private employers with fewer than 500 employees (“covered employers”) to provide paid sick and family leave for certain COVID-19 related absences and includes a tax credit for employers for the cost of the paid leave.

The Guidance comprises (i)  a Fact Sheet for Employers, (ii) a Fact Sheet ...

[Updated on April 17, 2020]

As temporary layoffs and furloughs become more prevalent during the COVID-19 outbreak, employers have been asking whether they may allow employees to take hardship distributions under their Section 401(k) plans for expenses and losses resulting from COVID-19.

Under the IRS hardship distribution final regulations, employers were permitted to add a new safe harbor hardship category that would allow an employee to take a hardship withdrawal to cover expenses and losses (including loss of income) incurred by the employee on account of a disaster declared ...

The closure orders issued by federal and state government authorities across the United States have resulted in the reduction and loss of income for a significant percentage of the U.S. workforce. On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (the “Coronavirus Act”), effective April 1, 2020, providing relief for certain eligible families, employers and businesses. Further legislation is on the horizon. Meanwhile, under existing law, the Internal Revenue Code of 1986, as amended (the “Code”) permits employers to provide ...

The Connecticut Department of Labor issued guidance entitled “Frequently Asked Questions About Coronavirus (COVID-19) For Workers and Employers” (last updated on March 20, 2020 (the “Guidance”).  The Guidance provides no new legal requirements or amendments to existing laws, but instead, analyzes issues raised by the COVID-19 pandemic under existing laws in the areas of unemployment insurance, paid sick leave, wage and hour law and the Connecticut Family and Medical Leave Act (“CTFMLA”).

Unemployment Insurance Benefits for Shut Downs and Quarantines

The ...

Many employers are looking for ways to assist employees directly impacted by COVID-19 and employees on temporary lay-off or furlough who are exhausting their available paid-time-off (PTO). One option employers often ask about is the feasibility of adopting a leave sharing or leave donation program that would permit employees to donate vacation, sick leave or PTO to employees who need the additional time because they have been impacted by COVID-19. Properly structured, leave donated to a co-worker is a viable option, which will not be taxable to the donor but rather taxable to the co-worker when the leave is actually taken.

Employers generally may offer three different types of leave donation programs: (1) a major disaster leave sharing program (2) leave donations for employees on medical leave; and (3) leave donation to an employer-designated public charity or private foundation. Employees on leave for their own COVID-19 medical treatment could be beneficiaries of a medical leave sharing program; if an employee is not on medical leave, however, donating PTO to the employees would require a major disaster leave sharing program.

Major Disaster Leave Sharing. The current IRS guidance on “major disaster leave sharing programs” can be found under IRS Notice 2006-59. Such a program requires that the President declare a major disaster under Section 401(a) of the Stafford Act (or, as to federal employees only, a major disaster or emergency affecting a sufficient number of federal employees).On March 13, 2020, President Trump declared the COVID-19 outbreak to be an “emergency” under Section 501(b) of the Stafford Act. He did not, however, formally declare it a Section 401(a) “disaster,” but merely stated that he would not preclude the possibility that the COVID-19 outbreak would also rise to a Section 401(a) “disaster.” To fully utilize a major disaster leave sharing program, IRS guidance in the form of an announcement, notice or otherwise, would be welcome.

The Illinois “Stay at Home” Order took effect at 5:00 p.m. on March 21, 2020, and will last through April 7 (full text here).  This post will briefly summarize the Order’s application to Illinois businesses, and then provide a one-stop-shop index pointing you to Epstein Becker & Green, P.C. (“EBG”) and governmental resources to help you comply with existing and COVID-19-specific federal, state, and local regulations.

What Does “Stay at Home” Mean for My Business?

The Order requires “all individuals currently living within the State of Illinois” to “stay at home ...

On Monday March 23, 2020, President Donald Trump signed an executive order aimed at preventing hoarding and price gouging.  Attorney General William H. Barr indicated that the order is authorized under the Defense Protection Act, which allows the United States to compel private industry to assist in meeting national defense needs in response to national emergencies.

The new executive order empowers the Health and Human Services Secretary to designate supplies as “critical.”  Hoarding – accumulating quantities beyond those reasonable to satisfy personal or business needs ...

Department of State Suspends Routine Visa Services

On March 20, 2020, in response to significant worldwide challenges related to the novel coronavirus (“COVID-19”) pandemic, the Department of State announced that routine visa services will be temporarily suspended at all U.S. embassies and consulates. Further, embassies and consulates will cancel all routine immigrant and nonimmigrant visa appointments. Please note that services will continue to be available to U.S. citizens, and applicants with an urgent matter and need to travel immediately should follow the ...

Joining California, Delaware, Illinois, Louisiana, Massachusetts, New Jersey, New York, Ohio, as well as multiple counties and cities, on March 23, 2020, Michigan’s Governor Gretchen Whitmer issued Executive Order 2020-21 (COVID-19) (“Order”), ordering that all Michigan residents “shelter in place” in response to the novel coronavirus (“COVID-19”), effective 12:01 a.m. on Tuesday, March 24, 2020, and continuing through April 13, 2020, at 11:59 p.m.

Among other things, the Order prohibits an employer from requiring its workers to leave their homes, unless ...

On Saturday, March 21, 2020, New Jersey Governor Phil Murphy signed two Executive Orders to bring state-wide consistency to the mandated restrictions and closures arising from the COVID pandemic. The first, Executive Order 107 (Order 107) requires all nonessential New Jersey private businesses and nonprofits to close to the public (with certain exceptions), details restrictions and guidelines for those that are not required to close, and requires residents to stay at home unless they are engaging in excepted conduct.  Order 107 supersedes and increases the prior restrictions ...

The COVID-19 pandemic has leveled a blow against businesses everywhere.  The Governors of New York, California, Illinois, and Pennsylvania, for example, have ordered all non-essential businesses to close their physical locations and the California Governor has ordered all residents, except those performing essential functions, to stay home.  Governors across the country have issued orders restricting various business activities.  The trend is likely to continue in the coming weeks and to adversely impact the bottom line of many businesses.

Some businesses, however, may have ...

On March 20, 2020, New Jersey Governor Phil Murphy signed legislation (A3848), which bars employers from taking any adverse employment actions against employees who take, or request, time off due to an infectious disease that could affect others at work based on a written recommendation of a New Jersey licensed medical professional.   It also precludes an employer from refusing to reinstate the employee to the position held when the leave commenced with no reduction in seniority, status, employment benefits, pay or other terms and conditions of employment.  Although ...

On March 4, 2020, New Mexico Governor Michelle Lujan Grisham signed into law House Bill 21 (“Law”), limiting the use of non-disclosure agreements (“NDA”) in settlements of sexual misconduct claims.

The Law prohibits employers from requiring, as a condition of employment, that an employee agree to an NDA in a settlement agreement relating to a claim of sexual harassment, discrimination, or retaliation whether occurring in the workplace or at a “work-related event[s] coordinated by or through the employer.” In settlement agreements with former employees, the Law ...

On March 20, 2020, the U.S. Department of Homeland Security (“DHS”) announced that it is temporarily amending the Form I-9 verification and reverification procedures that require company representatives to physically review the original document(s) that verify U.S. work authorization.

Under INA § 274A and 8 C.F.R. § 274a, employers are required to verify original documents that confirm the work authorization of any new hire within three days of that new hire’s start date. With the 2019 novel coronavirus (“COVID-19”) pandemic, many companies have decided to ...

As we explained in an earlier post, the Colorado Department of Labor and Employment (“DLE”) has issued new Health Emergency Leave with Pay (“HELP”) Rules in response to the coronavirus. Effective March 11, 2020, the HELP Rules mandate employers provide four (4) days of paid sick leave for employees in certain industries who have flu-like symptoms to receive COVID-19 testing. The DLE has since released FAQs to clarify some ambiguities in the HELP Rules.

Four Calendar Days of Paid Sick Time

Per the FAQs, the four days of paid sick leave are measured in calendar days. This ...

On March 17, 2020, the District of Columbia passed the COVID-19 Response Emergency Amendment Act of 2020 (the “Act”), which extends additional benefits under the District’s unemployment insurance (“UI”) law and the D.C. Family and Medical Leave Act (“DCFMLA”), and among other things also provides various forms of business relief. The Act is effective immediately.

DCFMLA Expansion

The Act expands the reach of the DCFMLA to provide “declaration-of-emergency” (“DOE”) leave to employees unable to work as the result of the circumstances giving rise to a ...

In a news conference on March 20, 2020, New York Gov. Andrew Cuomo ordered all nonessential New York State private businesses and nonprofits to reduce their workforce reporting to work by 100%  The announcement essentially amends Executive Order 202.6 (“Order”), issued by Gov. Cuomo on March 18, 2020, which required a 50% workforce reduction, by no later than March 20th at 8 p.m. (On March 19, 2020 Gov. Cuomo had announced a 75% required reduction, which has now been superseded).

The Order requires businesses and nonprofits to use telecommuting and work-from-home procedures ...

During this global health emergency, many employers are facing the necessity of curtailing operations and imposing temporary layoffs or furloughs with their workforce.  As a critical consideration, employers have been asking whether and to what extent they may permit group health care coverage to continue during a period of temporary layoff or furlough.

The following questions and answers provide some general guidelines and legal issues to consider in deciding whether to extend group health coverage during a temporary layoff or furlough.

What do we mean by temporary layoffs or ...

On March 17, 2020, the Equal Employment Opportunity Commission (EEOC) posted an article on its website, “What You Should Know About the ADA, the Rehabilitation Act, and COVID-19.”  The article confirms that workplace anti-discrimination laws enforced by the EEOC remain applicable, but that nothing in those laws interferes with or prevents “employers from following the guidelines and suggestions made by the CDC or state/local public health authorities about steps employers should take regarding COVID-19.”

In addition, the article provides a link to guidance the ...

On March 10, 2020, the New York Department of Financial Services (“DFS”), which regulates a wide variety of financial institutions, including banks, insurance companies, and investment advisors doing business in New York, issued a series of letters regarding the response to the Novel Coronavirus (“COVID-19”).   In addition to providing guidance, DFS has asked all regulated financial institutions to provide “assurance” that they have plans to address the operational and financial risks associated with COVID-19.  A copy of the letter to regulated financial ...

As the United States and the rest of the world hunker down in their homes to slow the spread of the novel coronavirus (COVID-19), many organizations have implemented “working-from-home” procedures that are designed to protect the health of the employees.  Working-from-home, however, presents heightened threats to the cybersecurity of benefit plans, including the plan’s assets and employee data that is collected, transmitted, and stored with regard to employee benefit plans.  Plan sponsors and fiduciaries have asked about the particular risks that working-from-home ...

The COVID-19 global pandemic has created a multitude of business and workforce challenges for employers.  In addition to addressing organizational issues, employers that sponsor employee benefit plans and plan fiduciaries must continue to manage and administer the benefit plans as well as address plan participant inquiries during these unprecedented and uncertain times.

One area where plan fiduciaries are seeking guidance concerns oversight of defined contribution plan investment options and any additional actions that they can take now with respect to monitoring such ...

A post on the Management Memo blog will be of interest to many of our readers: "Coronavirus Considerations for Employers with a Unionized Workforce," by attorneys Adam S. Forman, Michael S. Ferrell, Steven M. Swirsky, and Elizabeth "Libby" Martin of Epstein Becker Green.

Following is an excerpt:

As we have discussed in prior Advisories, the 2019 Novel Coronavirus (“Coronavirus” or “COVID-19”) public health emergency is raising important issues for employers addressing rapidly developing disruptions to the workplace and the lives of employees with mass school ...

As many employers and employees in the State of New York know, when an individual files claims for unemployment insurance benefits, New York Labor Law, Section 590, Subdivision 7, has a mandatory seven day waiting period before unemployment benefits may be paid.

On March 7, 2020, Governor Andrew Cuomo issued Executive Order No. 202.1, declaring a State disaster emergency for the entire State of New York (the “Order”). The Order, which is entitled “Suspension and Modification of Laws Relating to the Disaster Emergency,” suspends and modifies many existing laws.

This ...

On March 10, 2020, Colorado Governor Jared Polis issued an executive order directing he Colorado Department of Labor and Employment (“DLE”) to create emergency rules to “ensure workers in food handling, hospitality, child care, health care, and education can get paid sick leave to miss work if they exhibit flu-like symptoms and have to miss work awaiting testing results for COVID-19.”

The DLE issued the Colorado Health Emergency Leave with Pay (“HELP”) Rules, which mandates four days of paid sick leave for employees in certain industries who have flu-like symptoms to ...

At the time of publication, at least twenty four states, plus Washington D.C. have declared states of emergency related to the novel coronavirus (“COVID-19”), with that number growing by the hour.  In addition to making more resources available to residents, in many cases, the declarations also trigger additional protections to consumers in the form of anti-price gouging laws.  These laws, which automatically go into effect, are intended to prevent merchants from significantly increasing the cost of consumer goods and services during a crisis.

For instance, in New Jersey a ten ...

On March 10, 2020 the New Jersey Supreme Court ruled that under the New Jersey Law Against Discrimination (“LAD”), employees who legally use cannabis as permitted by the state’s Compassionate Use of Cannabis of Medical Marijuana Act[i] (“Compassionate Use Act”) may not be fired because they use medical cannabis and that such employees are entitled to reasonable accommodation. In a brief opinion, the Court substantially adopted the Appellate Division’s reasoning in Wild v. Carriage House Funeral Holdings, Inc., about which we previously wrote.

Wild was employed by ...

As featured in #WorkforceWednesday:  In the event the coronavirus spreads drastically, many employers will want to implement mandatory work-from-home policies. Employers should consider various aspects of the Fair Labor Standards Act when crafting these policies. Attorney Jeffrey H. Ruzal explains best practices in the following video interview. See also his recent post on the Wage and Hour Defense Blog. 

Video: YouTube, Vimeo, MP4, Instagram.

First of Many Anticipated Employment Changes in Virginia, Including Expanded Coverage and Remedies for the Virginia Human Right Act and Minimum Wage Increases

On March 4, 2020, Virginia Governor Ralph Northam signed into law House Bill 1514, which amends the Virginia Human Rights Act (“VHRA”) to prohibit discrimination, “because of or on the basis of traits historically associated with race, including hair texture, hair type, and protective hairstyles such as braids, locks and twists.”  Under the law, which takes effect on July 1, 2020, covered employers may enforce ...

The IRS Office of Chief Counsel recently issued a memo which, in a surprise to many, concluded that the filing of the Affordable Care Act (“ACA”) Forms 1094-C and 1095-C (“C Forms”) does not start the statute of limitations on the Employer Shared Responsibility Payments (“ESRP”) under Internal Revenue Code (“Code”) § 4980H and, in fact, that there is no statute of limitations with respect to ESRP assessments.

In short, the ESRP is a penalty that may be assessed against “applicable large employers” (“ALEs”)[1] when, in certain circumstances, a full-time ...

Following are the top stories featured in this week's #WorkforceWednesday, from Employment Law This Week:

Employee Travel and the Coronavirus

The threat of COVID-19 is growing, and U.S. companies are on high alert. International travel by employees is an area of particular concern to employers. For more, check out our resource center at https://www.ebglaw.com/coronavirus.

NLRB Joint-Employment Rule to Take Effect

The National Labor Relations Board ...

We are pleased to present Workforce Bulletin, the newest blog from law firm Epstein Becker Green (EBG). We've combined a decade of posts from five of the firm's well-regarded blogs, spanning employment law topics impacting employers in a range of industries and areas, including financial services, hospitality, OSHA, retail, technology, and more.

Workforce Bulletin will feature thought leadership from EBG attorneys on cutting-edge issues, such as sexual harassment, diversity and inclusion, pay equity, artificial intelligence in the workplace, cybersecurity, and the impact ...