COVID-19 FAQs

 In


In the face of the COVID-19 emergency, employers are struggling with many questions about the impact in the workplace. This document provides answers to many Frequently Asked Questions. As this is a fast-moving and volatile situation, we will be constantly updating this document. New information as of May 7, 2020 will be shown in red.

The materials presented in this resource are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of this resource does not create an attorney-client relationship between the participant and Shawe Rosenthal LLP.

TABLE OF CONTENTS

BACKGROUND ON CORONAVIRUS

Q: What Is Coronavirus and How Does It Spread?

A: The current outbreak is 2019 Novel Coronavirus (COVID-19), which is a new respiratory disease in the coronavirus family, with the source currently unknown, although bats are suspected.  Past coronavirus outbreaks include SARS, which came from civet cats, and MERS, which originated from camels.

COVID-19 can spread person-to-person (contact within 6 feet) through respiratory droplets from coughing and sneezing.  The disease can also possibly be transmitted through hard surface contamination, although it is unclear how long the virus will survive on a hard surface.  Studies suggest that coronaviruses may persist on surfaces for a few hours or up to several days.

Q: What Are The Symptoms Of Coronavirus? (Updated 5/7/20)

A: According to the CDC, the symptoms appear in the form of a fever, dry cough, shortness of breath, chills, repeated shaking with chills, muscle pain, headache, sore throat and a loss of taste or smell.  Some people have also reported gastrointestinal problems such as nausea, diarrhea or vomiting. Symptoms appear 2-14 days after exposure. Individuals may be contagious up to 48 hours before becoming symptomatic.

Q: What Are Complications Of The Coronavirus?

A: Pneumonia, kidney failure, and death.

THE FAMILIES FIRST CORONAVIRUS RESPONSE ACT

Q: What Is The Families First Coronavirus Response Act (CRA)? (Updated 5/7/20)

A: Congress has passed the Families First Coronavirus Response Act (CRA), specifically addressing the COVID-19 emergency.  Among other things, there are four employment-related provisions: (1) a new paid sick leave mandate for COVID-19 related reasons; (2) an expansion of the Family and Medical Leave Act to include closures of schools and child care facilities COVID-19 reasons, including additional paid leave; (3) an expansion of unemployment benefits to cover COVID-19 related reasons; and (4) a payroll tax credit to fund the two paid leave mandates. The Department of Labor issued regulations to implement the CRA, and a Questions and Answers resource for additional guidance.  

Q: What Is The Emergency Paid Sick Leave Act Under The CRA? (Updated 4/2/20)

A: The Emergency Paid Sick Leave Act applies to employers with less than 500 employees, but contains exemptions for employers of healthcare employees and emergency responders, as well as certain employers with fewer than 50 employees meeting certain criteria related to the viability of the business (but only as to leave for the COVID-19-related closures of a school or place of care or unavailability of a child care provider).  It was amended by the Coronavirus Aid, Relief and Economic Security (CARES) Act to cover employees who were laid off after March 1, 2020 and then rehired, as long as they worked for the employer for 30 of the 60 days prior to the layoff.

The Emergency Paid Sick Leave Act provides ten days of paid leave (80 hours for full-time (40 hours per week) employees, and a pro rated amount for part-time (less than 40 hours a week) employees) at the greater of the employee’s regular rate or minimum wage, to a maximum of $511 per day and a total of $5,110, if the employee is unable to work or telework for the following reasons:

  • The employee is subject to federal, state, or local quarantine or isolation order
  • A health care provider (meaning a licensed doctor of medicine, nurse practitioner, or other health care provider permitted to issue a certification for purposes of the Family and Medical Leave Act) has advised the employee to self-quarantine
  • The employee has symptoms of COVID-19 and is seeking diagnosis

Paid sick leave may be paid at 2/3 the employee’s regular rate, to a maximum of $200 per day and a total of $2,000, for an employee who is unable to work or telework for any of the following reasons:

  • The employee is caring for an individual under quarantine
  • A child’s school or place of care is closed or the child care provider is unavailable due to COVID-19
  • Some other substantially similar condition specified by the Secretary of HHS in consultation with the Secretaries of Labor and Treasury

Employees are not permitted to carry over emergency paid sick leave, and it is not paid out upon termination.  The Emergency Paid Sick Leave Act sunsets on December 31, 2020.

Emergency Paid Sick Leave is available for immediate use.  The employer cannot require an employee to find a replacement in order to use the leave.  Employees should attempt to give notice of intent to use as soon as practicable.  After the first day of use, however, the employee may be required to follow notice procedures.

Q: What Is The Emergency Family And Medical Leave Expansion Act Under The CRA? (Updated 4/2/20)

A: The CRA includes the Emergency Family and Medical Leave Expansion Act.  This applies to employers with fewer than 500 employees. Certain health care providers and emergency responders are excluded from this Act.  Additionally, there is an exclusion for employers with less than 50 employees if the requirements “would jeopardize the viability of the business as a going concern.”

The FMLA expansion permits employees to take FMLA leave if they are unable to work or telework because they have a bona fide need to care for a son or daughter (as defined under the FMLA) due to the closure of the child’s school or child care facility, or the unavailability of a child care provider, due to COVID-19. After the first 10 days of unpaid FMLA leave (which may be covered by the CRA’s Paid Sick Leave mandate or other paid leave, at the employee’s choice), the remainder of this type of FMLA leave is paid at 2/3 of the employee’s regular rate, up to a maximum of $200 per day, and $10,000 in total.  This expansion of FMLA sunsets on December 31, 2020.

An employee is eligible for FMLA under this provision if they have been employed for at least 30 days.  The normal eligibility and coverage requirements under the FMLA do not apply to this specific expansion to cover school/child care closures. In addition, the Coronavirus Aid, Relief and Economic Security (CARES) Act amended this provision to include employees who were laid off after March 1, 2020 and then rehired, as long as they worked for the employer for 30 of the 60 days prior to the layoff.

This is not a new bank of FMLA leave; the FMLA expansion simply allows employees eligible for regular FMLA to use their 12 weeks of FMLA leave for the new reason. If an employee needs to use FMLA leave for a regular FMLA reason, it will reduce the amount of FMLA leave available for this expansion. And conversely, if the employee uses FMLA leave for the COVID-19-related school/child care closure, it will reduce the amount of FMLA leave available for any other FMLA reason.

The regulations make clear that the employee is also limited to 12 weeks of expanded FMLA leave altogether during the effective period (April 1 – December 31, 2020), even if the 12 weeks span two of the employer’s (non-calendar year) 12-month FMLA periods. For example, if an employer’s twelve-month period begins on July 1, and the employee took seven weeks of expanded FMLA leave in May and June, 2020, the employee could only take up to five additional weeks of the new 12-week allotment of FMLA leave for the expanded FMLA child care purpose between July 1 and December 31, 2020, even though the first seven weeks fell in the prior twelve-month period.

Note that the expanded FMLA right for school/child care closures applies to employees not eligible for regular FMLA – those who have worked for an employer for 30 days (and would not meet the normal FMLA eligibility requirements of 12 months of employment and 1250 hours of service during the prior 12 months) and employees of employers with fewer than 50 employees (who are not covered by regular FMLA). Until December 31, 2020, these employees have a full 12 weeks of FMLA leave to use to care for a child due to the closure of the school or child care.

Q: What Are The Payroll Tax Credits Under The CRA? (Updated 4/1/20)

A: The Act provides a payroll tax credit equal to 100% of the required Paid Sick Leave, up to $511 per day and a total of $5,110 for leave taken because of the employee’s own personal needs and up to $200 per day and a total of $2,000 for leave taken to care for a family member or because of a school closure or loss of child care, subject to other limitations and conditions.  In addition, the Act provides a payroll credit equal to 100% of the required paid FMLA, up to $200 per day or an annual aggregate of $10,000. Again, there are other limitations and conditions.

In its COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs, the IRS explains that the credit for the full amount of qualified paid leave wages, plus allocable qualified health plan expenses and the employer’s share of Medicare tax, is allowed against the employment taxes on all wages and compensation paid to all employees. If the amount of the credit exceeds the employer portion of these federal employment taxes, the excess is treated as an overpayment and refunded to the employer.

The IRS explains that employers will be able to retain the amount of qualified paid leave wages (plus health plan expenses and its Medicare contribution) against its federal employment taxes owed (income tax withholding, as well as both the employees’ and employer’s share of social security and Medicare taxes), rather than depositing the taxes with the IRS. If the taxes are not sufficient to cover the qualified paid leave wages, the employer can file a request for an advance payment from the IRS.

Employers must retain records and documentation supporting each employee’s leave, discussed below, to substantiate the claim for credits, in addition to Form 941 (Employer’s Quarterly Federal Tax Return) and (new) Form 7200 (Advance of Employer Credits Due to COVID-19), as well as “any other applicable filings made to the IRS requesting the credit.” The IRS also specifies that employers must retain records of employees’ work, telework, and qualified Paid Sick Leave and expanded FMLA leave, for purposes of showing how the amount of qualified wages were paid. In addition, employer must also retain documentation showing how it determined the amount of qualified health plan expenses that it allocated to wages. These records must be retained for four years.

In its FAQs, the IRS details the process by which employers may receive the tax credit. Employers should review that resource and consult their accountant or tax attorney for further assistance on this process.

Q: What Is The Impact On Unemployment Insurance Benefits Under The CRA? (Updated 4/9/20)

A: The Act provides emergency administration grants to states to assist with processing and paying unemployment insurance benefits, if the state “demonstrate[] steps it has taken or will take to ease eligibility requirements and access to unemployment compensation for claimants, including waiving work search requirements and the waiting week, and non-charging employers directly impacted by COVID-19 due to an illness in the workplace or direction from a public health official to isolate or quarantine workers.” By doing so, states would allow employees to obtain UI benefits if they are ill or ordered into quarantine due to exposure to COVID-19 – a matter that is currently left to each state’s interpretive discretion.  It is important to note that Unemployment Insurance already covers layoffs and closures.

Notably, the CARES Act expanded the rights to UI benefits drastically. See Q&As below and DOL guidance for further detail.

Many states have already enacted COVID-19-related emergency legislation that allows employees to receive UI benefits if they are quarantined, are caring for a family member who has been quarantined, because of a child’s school closure, and other reasons. It is important to check the applicable state law.

Q: What Is The Effective Date Of The CRA? (Updated 4/9/20)

A: The Act took effect on April 1, 2020. The paid leave mandates expire on December 31, 2020.

The paid leave mandates are not retroactive. Therefore, any paid leave that employers have chosen to provide for the COVID-19-related reasons set forth in the CRA, above and beyond existing policies or state law mandates, prior to its effective date will not count towards the CRA’s paid leave obligations.  Employers may not receive the tax credit reimbursement for COVID-19-related leave that it may have provided prior to April 1, 2020. Employees may not receive retroactive Paid Sick Leave or expanded FMLA leave for leave taken prior to April 1, 2020.

Q: Which Employees Are Counted Towards The 50/500 Employees? (Updated 4/2/20)

A:  “Employee” includes full-time, part-time, seasonal and temporary employees. The 500 employees is counted across an entire company or organization, not by location. In addition, the employees are counted if they are on the employer’s roster; it does not matter if the employee is currently on leave or in a non-work status.  The DOL also states that day laborers supplied by a temporary agency if there is a continuing employment relationship must be counted. The DOL states that the count does not include workers who have been laid off or furloughed and have not subsequently been reemployed – a point of some significance in light of the current economic crisis. The count is made at the time the employee’s leave is to be taken.

Similarly, if an employer may be subject to the under-50 employee exemption to the paid leave mandates, the employees are counted in the same way.

If a company uses a staffing company to provide supplemental labor, whether those staffing company employees would be counted towards the host company’s 50/500 employee count would depend on whether the two companies should be considered joint employers. Similarly, a joint employer issue may arise in a franchise-franchisor relationship. With regard to the Paid Sick Leave, the Department of Labor has recently issued regulations on the joint employer analysis under the Fair Labor Standards Act, which we summarized in our January 13, 2020 E-Lert. As for the FMLA expansion, existing Family and Medical Leave Act regulations set forth the applicable joint employer standard.  These standards are set forth below in our affiliated employers Q&A.

Q: What Are The Notice Requirements for Employers? (Updated 4/2/20)

A: The Secretary of Labor has prepared a notice that must be posted in conspicuous places where the employer normally posts other such employment notices, such as break rooms and cafeterias that are regularly accessed by all employees. In an FAQ document on the notice, the DOL states that in light of the focus on teleworking, employers may satisfy the posting requirements by emailing or direct mailing the notice to employees, or by electronically posting the notice on an internal or external website accessible to employees. The notice need not be posted in other languages, although the DOL is working to make that available. It is not acceptable to place the poster in a binder.

The notice is available at: https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf

In addition, the DOL informs employers furnishing notices to sensory-impaired individuals that they must also comply with all applicable requirements under Federal or State law. Employers are not required to translate or provide the notice in languages other than English. For employers who are covered by the expanded FMLA but are not covered by the other provisions of the FMLA, posting of the mandatory CRA notice satisfies their general notice obligation under the FMLA. 

Under the regular FMLA, the employer is required to comply with “specific notice” obligations, such as the notice of eligibility, the notice of rights and responsibilities, and written designation of FMLA leave. In its Discussion to its regulations, however, the DOL notes that it did not adopt these requirements for expanded FMLA. It states, however, that an employer that has established practices for providing such specific notices may prefer to apply their existing practices to expanded FMLA leave users.

Q: Are Employees Of Affiliated Companies Combined Towards The 500 Employees? (Updated 4/1/20)

A: The DOL states that a corporation is typically considered to be a single employer for purposes of the CRA. If one corporation has an ownership in another, they are still separate employers unless they are considered joint employers under the Fair Labor Standards Act. The DOL recently released its final rule setting forth its revised joint employer analysis, as we discussed in our January 13, 2020 E-Lert, and summarize here.

Under the revised joint employer analysis, the DOL has identified two scenarios: (1) where an employee’s hours worked for one employer simultaneously benefits another employer; and (2) where the employee works separate sets of hours for different employers in the same workweek. Under the first scenario, the DOL assesses joint employer status by examining whether the potential joint employer is acting directly or indirectly in the interest of the employer in relation to the employee. Under a four-factor test, the DOL examines whether the potential joint employer:

  • hires or fires the employee;
  • supervises and controls the employee’s work schedules or conditions of employment to a substantial degree;
  • determines the employee’s rate and method of payment; and
  • maintains the employee’s employment records.

The DOL states that the joint employer determination will depend on all the facts in a particular case, with the weight given each factor varying depending on the circumstances. Of particular note, the potential joint employer must actually exercise the power to take these specifically identified or other such actions – the ability or reserved right to do so will not alone trigger joint employer status.

If the entities are joint employers of particular employees, then all of their common employees must be counted by each employer towards the 500-employee threshold for purposes of both the Paid Sick Leave and the expanded FMLA mandates.

The DOL also acknowledges that two or more corporate entities are separate employers unless they are deemed integrated (or a single) employer under the Family and Medical Leave Act. In determining whether separate entities are an integrated employer, the DOL assesses four factors:

  • common management
  • interrelation between operations,
  • centralized control of labor relations, and/li>
  • degree of common ownership or financial control.

No one factor is dispositive, but centralized control of labor relations/human resources functions is one of the more significant ones.  If the entities are found to be an integrated employer, then all employees of the entities that constitute the integrated employer are counted towards the 500-employee threshold for the CRA leave mandates.

Q: How Does The Paid Sick Leave Mandate Interact With Existing Leave Policies ? (Updated 4/2/20)

A: The Paid Sick Leave mandate under the CRA is in addition to any existing leave, whether under state or local law or by employer policy. Employers cannot use existing leave to cover the Paid Sick Leave.  The DOL also states that any paid leave provided prior to the CRA’s effective date does not count towards the Paid Sick Leave mandate.

In addition, if there is other paid leave that may be used for the COVID-19-related reasons for Paid Sick Leave, the employee may choose whether to use the CRA leaves or the other leaves first. The employer cannot require the employee to use other available leave in any particular sequence. If the employee uses all available CRA leave, however, the employer may then require the employee to use the additional leave, if permitted by applicable law or policy.

The DOL clarifies that employees may not use CRA Paid Sick Leave concurrently with preexisting paid leave, unless the employer agrees (which would be unlikely, as the employee would likely be receiving well more than their normal pay). The employee must choose which leave to take.

The employer may allow – but not require – the employee to use the preexisting paid leave benefit to bridge any difference between CRA Paid Sick Leave and full pay (e.g. when the employee is receiving 2/3 pay to care for an ill or quarantined family member or due to the need to care for a child because of a school/child care closure). Note, however, that the employer will only be entitled to the payroll tax credit for the statutory CRA portion of the leave.

The DOL notes that an employer can choose to pay more than they are entitled to under CRA – i.e. full pay rather than 2/3 pay to care for an ill family member or a child whose school or child care has closed. However, the employer will only be entitled to the tax credit at the statutory 2/3 amount.

In our opinion, short-term disability benefits will not apply to employees while they are eligible for CRA paid leave, even if they are eligible for STD.

Q: How Does The Paid FMLA Leave Mandate Interact With Existing Leave Policies? (Added 4/2/20)

A: After initially stating that the paid portion of expanded FMLA leave was a new entitlement, it now appears that the DOL will allow employers to substitute their existing paid leave programs for paid expanded FMLA leave and receive a tax credit toward the statutory 2/3 cap. (Paid Sick Leave remains a new bank of leave). Under the provisions of the regular FMLA, employers may require employees to substitute available paid leave for unpaid FMLA leave, running concurrently. The CRA regulations are confusing, as they take apparently internally inconsistent positions with regard to the substitution of paid leave for expanded FMLA leave, likely as a result of the rushed drafting process. Thus, one section provides that employers cannot require employees to substitute available paid leave for paid provisions of expanded FMLA leave. Three other sections, however, specifically state that employers can require such substitution – and in such case, would need to pay employees their full pay, but could take a tax credit for 2/3 of the amount under the CRA. This unfortunate inconsistency will need to be addressed by the DOL.

Notably, however, the DOL has updated its Q&A to now state that, after the initial two weeks of unpaid expanded FMLA, employers can require employees to use available paid leave (e.g. vacation, personal, sick (depending on whether it is permitted under any applicable statute) or PTO) to cover the remaining expanded FMLA leave. The leave would be fully paid through the paid leave, and the employer could take the statutory tax credit against 2/3 of the amount up to $200 per day. Once the paid leave is exhausted, however, the remaining leave would be paid under the CRA at 2/3 the employee’s regular pay up to the $200 daily cap.

Q. How Will The Small Business Exemption Work? (Updated 4/2/20)

A: The CRA provides an exemption from both the Paid Sick Leave (only for the COVID-19-related closures of a school or place of care or unavailability of a child care provider) and expanded FMLA mandates for employers with fewer than 50 employees if providing the mandated benefits “would jeopardize the viability of the business as a going concern.”  The DOL explains that a small business may claim this exemption if an authorized officer of the business has determined that:

  • The provision of Paid Sick Leave or expanded FMLA 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 Paid Sick Leave or expanded FMLA 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 Paid Sick Leave or expanded FMLA leave, and these labor or services are needed for the small business to operate at a minimal capacity.

The DOL’s regulations add that, in order to elect this small business exemption, the employer must document that a determination has been made pursuant to the specified criteria. This documentation is not sent to the DOL, but simply retained in the employer’s files – presumably to be available for inspection by the DOL if questions later arise.

Of note, the regulations specifically state that, regardless of whether a small business chooses to exempt one or more of its employees, the employer is still required to post the mandatory FFCRA notice.

Q: Which Health Care Providers Are Exempted From The Leave Mandates? (Added 3/29/20)

A: The CRA exempts certain “healthcare providers” from the Paid Sick Leave and expanded FMLA leave mandates. The DOL has now provided clarification as to who are such healthcare providers, and it is an extremely broad definition encompassing anyone who is involved in the healthcare industry, even including contractor support personnel for services like food service and maintenance, as well as suppliers and manufacturers of medical products.

Specifically, according to the DOL, a health care provider is anyone employed at any doctor’s office, hospital, health care center, clinic, post-secondary educational institution offering health care instruction, medical school, local health department or agency, nursing facility, retirement facility, nursing home, home health care provider, any facility that performs laboratory or medical testing, pharmacy, or any similar institution, employer, or entity. This includes any permanent or temporary institution, facility, location, or site where medical services are provided that are similar to such institutions.

The DOL further states that this definition includes any individual employed by an entity that contracts with any of the above institutions, employers, or entities institutions to provide services or to maintain the operation of the facility. This also includes anyone employed by any entity that provides medical services, produces medical products, or is otherwise involved in the making of COVID-19 related medical equipment, tests, drugs, vaccines, diagnostic vehicles, or treatments. This also includes any individual that the highest official of a state or territory, including the District of Columbia, determines is a health care provider necessary for that state’s or territory’s or the District of Columbia’s response to COVID-19.

Despite this incredibly broad definition, the DOL states that, to minimize the spread of the virus associated with COVID-19, it encourages employers to be judicious when using this definition to exempt healthcare providers from the provisions of the CRA.

Q: Which Emergency Responders Are Exempted From The Leave Mandates? (Added 3/29/20)

A: The CRA exempts certain “emergency responders” from the Paid Sick Leave and expanded FMLA leave mandates. The DOL has now defined “emergency responder” as is an employee who is necessary for the provision of transport, care, health care, comfort, and nutrition of such patients, or whose services are otherwise needed to limit the spread of COVID-19.

This includes but is not limited to military or national guard, law enforcement officers, correctional institution personnel, fire fighters, emergency medical services personnel, physicians, nurses, public health personnel, emergency medical technicians, paramedics, emergency management personnel, 911 operators, public works personnel, and persons with skills or training in operating specialized equipment or other skills needed to provide aid in a declared emergency as well as individuals who work for such facilities employing these individuals and whose work is necessary to maintain the operation of the facility. This also includes any individual that the highest official of a state or territory, including the District of Columbia, determines is an emergency responder necessary for that state’s or territory’s or the District of Columbia’s response to COVID-19.

The DOL states that, to minimize the spread of the virus associated with COVID-19, it encourages employers to be judicious when using this definition to exempt emergency responders from the provisions of the CRA.

Q: What Kind Of Verification Of The Need For CRA Leave Can Employers Require? (Updated 4/2/20)

A: In the current Questions and Answers resource and regulations, the DOL instructs employers to consult Internal Revenue Service (IRS) applicable forms, instructions, and information for the procedures that must be followed to claim a tax credit, including any needed substantiation to be retained to support the credit.

The IRS details the “records and documentation related to and supporting each employee’s leave” as required to substantiate the claim for credits (and validate the need for leave), as follows:

  1. The employee’s name;
  2. The date or dates for which leave is requested;
  3. A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason; and
  4. A statement that the employee is unable to work, including by means of telework, for such reason.

If the Paid Sick Leave request is based on a quarantine, the IRS requires that the statement from the employee should include the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine. If the quarantined person is not the employee, the employee must also provide that person’s name and relation to the employee.

In the case of a leave request for Paid Sick Leave and/or expanded FMLA leave based on  school/place of care closing or child care provider unavailability, the statement from the employee should include the following:

  • The name and age of the child (or children) to be cared for
  • The name of the school that has closed or place of care that is unavailable
  • A representation that no other suitable person (such as a co-parent, co-guardian, or a usual child care provider) is available to provide care for the child during the period for which the employee is receiving expanded FMLA leave
  • >If care is needed during daylight hours for a child older than fourteen, a statement that special circumstances exist requiring the employee to provide care

Notably, the DOL states that employers “are not required to provide leave if materials sufficient to support the applicable tax credit have not been provided.”

If the employee requires leave beyond the two-week Paid Sick Leave because of their own COVID-19 illness or to care for a family member with COVID-19, and the additional leave qualifies as “regular” FMLA leave (assuming that the illness meets the criteria for a serious health condition under the FMLA), the employee must provide the usual FMLA certifications from a health care provider. This only applies to employers with 50 or more employees and to employees who meet the eligibility requirements for FMLA leave.

Q: What Are The Job Reinstatement Requirements After Taking CRA Leave? (Added 3/29/20)

A: Employees are generally entitled to be restored to the same or an equivalent position upon returning from either Paid Sick Leave or expanded FMLA leave, as employers are prohibited from disciplining or discriminating against employees for exercising their rights under the CRA.

Just as under regular FMLA, however, there are certain circumstances under which reinstatement is not required. Thus, employees are not protected from employment actions that would have been taken regardless of whether they took leave (for example, employees may be laid off for legitimate business reasons, such as the closure of a worksite). In addition, certain highly-compensated “key” employees, as defined under the FMLA, need not be reinstated.
Also, the CRA provides that if the employee takes expanded FMLA leave to care for a child due to the closure of the school or child care, the employer need not reinstate the employee if all four of the following hardship conditions exist:

  • The employee’s position no longer exists due to economic or operating conditions that affect employment and due to COVID-19 related reasons during the period of the leave;
  • The employer made reasonable efforts to restore the employee to the same or an equivalent position;
  • The employer makes reasonable efforts to contact the employee if an equivalent position becomes available; and
  • The employer continues to make reasonable efforts to contact the employee for one year beginning either on the date the leave related to COVID-19 reasons concludes or the date 12 weeks after the leave began, whichever is earlier.

Q: How Are Hours Calculated for Part-Time and Variable Hour Workers? (Added 4/2/20)

A: Employers calculate hours of leave for these employees based on the number of hours the employee is normally scheduled to work.

If the normal hours scheduled are unknown, or if the employee’s schedule varies, and the part-time employee has been employed for at least six months, the employee is entitled to up to the number of hours of Paid Sick Leave equal to fourteen times the average number of hours that the employee was scheduled to work each calendar day over the immediately prior six-month period, including any hours for which the employee took leave of any type.

If this calculation cannot be made because the employee has not been employed for at least six months, the employee is entitled to up to the number of hours of Paid Sick Leave equal to fourteen times the number of hours the employee and the employer agreed to at the time of hiring that the employee would work, on average, each calendar day. If there is no such agreement, the employee is entitled to up to the number of hours of Paid Sick Leave equal to fourteen times the average number of hours per calendar day that the employee was scheduled to work over the entire period of employment, including hours for which the employee took leave of any type.

The DOL also states that employers may use twice the number of hours that the employee was scheduled to work per workweek, on average, over the six-month period prior to the leave.

Q: Must Overtime Hours Be Included In Calculating Pay? (Added 3/25/20)

A: The DOL states that, under the expanded FMLA for the closure of a school or child care, employees are entitled to unpaid leave for the first two weeks and, thereafter, must be paid the hours that they would normally have been scheduled to work, including overtime.

Note, however, that under the Paid Sick Leave provisions of the CRA, Paid Sick Leave is capped at 80 hours. Thus, an employee who regularly works a 50 hour week, including overtime, would be entitled to receive 50 hours of Paid Sick Leave in the first week of expanded (unpaid) FMLA leave and 30 hours of Paid Sick Leave in the second week. Of course, under the law, the employee would be able to use any other available paid leave to cover any remaining unpaid portion of the expanded FMLA leave, before the paid portion of expanded FMLA leave kicks in at week three.

Of particular interest, the DOL states “that pay does not need to include a premium for overtime hours under either the Emergency Paid Sick Leave Act or the Emergency Family and Medical Leave Expansion Act.” (Emphasis added). Thus, while an employee’s regular hours must take into account overtime, the rate of paid leave does not.

Q: How Is The Rate Of Pay For The Paid Leave Mandates Calculated? (Updated 5/7/20)

A: The rate of pay used to calculate paid leave is the average of the employee’s regular rate during the six-month period prior to the leave. Alternatively, the employer can take the total compensation earned by the employee and divide it by the total number of hours worked during that six-month period. If the employee has not worked for six months, the rate is the average of the employee’s regular rate for each week worked.

Commissions, tips and piece rates must be incorporated into the regular rate.

The DOL has provided general guidance on how to calculate the regular rate at https://www.dol.gov/agencies/whd/fact-sheets/56a-regular-rate, and detailed guidance on how to calculate the rate for purposes of the FFCRA at question 82 of its Q&A at https://www.dol.gov/agencies/whd/pandemic/ffcra-questions.

Q: What Does “Unable To Work Or Telework” Mean? (Added 3/27/20)

A: The DOL explains that telework is work that the employer permits or allows to be performed at home or outside of the normal workplace. Employees receive normal wages for telework; it is not paid leave under the CRA. Employees are unable to work, and therefore entitled to leave, if the employer has work available, but the employee is unable to perform the work, even by teleworking, for one of the specified COVID-19-related reasons.

The DOL further explains that paid leave under the CRA is not necessary if there is a change in schedule that allows the employee to work their normal amount of hours. In addition, leave is also not necessary if the employee is able to telework while caring for a child due to the closure of the child’s school or child care.

Q: What Is A “Quarantine Or Isolation Order” For Purposes Of Paid Sick Leave? (Added 4/2/20)

A: In its regulations, the DOL expanded this definition beyond formal quarantine or isolation orders (i.e. directives under applicable state law by state or local health officials to specific individuals or groups of individuals based on possible or actual infection) to include “containment, shelter-in-place, or stay-at-home orders issued by any Federal, State, or local government authority.” (Emphasis added). The DOL also includes the situation when a Federal, State, or local government authority has advised categories of citizens (e.g., of certain age ranges or of certain medical conditions) to shelter in place, stay at home, isolate, or quarantine.

Notably, a quarantine or isolation order (whether of the employee or another individual) must result in the employee being unable to work even though the employer has work for them. The DOL goes on to clarify that an employee may not take Paid Sick Leave where the employer does not have work for the employee as a result of the order or other circumstances. Thus, for example, if the employer is required to furlough employees or shut down operations as a result of the order, the affected employees are not entitled to take Paid Sick Leave. In its Discussion of the regulations, the DOL offers several illustrative examples of this provision:

  • If a coffee shop closed due to a downturn in business or a stay-at-home order, an employee who is subject to a stay-at-home order would not be able to work even if he were not required to stay at home. Therefore, the employee would not be able to use Paid Sick Leave.
  • If a law firm permits its lawyers to work from home, a lawyer would not be prevented from working by a stay-at-home order, and thus may not take Paid Sick Leave. But she would not be able to telework in the event of a power outage or similar extenuating circumstance that prevented her from teleworking and would therefore be eligible for paid sick leave during the that time due to the quarantine or isolation order.

Q: When Can A Health Care Provider Advise An Employee Or Individual To Self-Quarantine For Purposes of Paid Sick Leave? (Upddated 4/3/20)

A: A health care provider (meaning a doctor, nurse-practitioner, or similar medical professional) can advise self-quarantine if the if the employee has COVID-19, may have COVID-19, or “is particularly vulnerable to COVID-19.” (Emphasis added). This may include older employees and those with underlying health care conditions, in order to avoid possible exposure. 

The DOL further states that an employee who unilaterally chooses to self-quarantine without seeking a diagnosis or the advice of a health care provider is not entitled to E-PSL, even if the employee has COVID-19 symptoms. The DOL also warns that employees may not take E-PSL for illnesses unrelated to COVID-19.

Q: What Does “Seeking Diagnosis” Mean For Purposes of Paid Sick Leave? (Added 4/2/20)

A: This means the time that the employee is unable to work because they are taking affirmative steps to obtain a medical diagnosis, such as making, waiting for, or attending an appointment for a test for COVID-19.

Q: Who Is A “Child Care Provider” For Purposes Of CRA Leave? (Added 4/2/20)

A: This means a provider who receives compensation for providing child care services on a regular basis. The term includes a center-based child care provider, a group home child care provider, a family child care provider, or other provider of child care services for compensation that is licensed, regulated, or registered under State law. But it also includes family members or friends who regularly care for the child, without licensing or pay.

Q: What Is A “Place Of Care” For Purposes of CRA Leave? (Added 4/3/20)

A: The DOL defines “place of care” as a physical location in which care is provided for the child, but it does not have to be solely dedicated to such care. Examples include day care facilities, preschools, before- and after-school programs, schools, homes, summer camps and enrichment programs, and respite care programs.

Q: What Are The Parameters Regarding CRA Leave Due To The Closure Of A School/Place Of Care Closure Or Unavailability Of A Child Care Provider? (Added 4/3/20)

A: The right to take leave because of a school/child care closure or unavailability of a care provider is not automatic. The DOL emphasizes that an employee may take Paid Sick Leave or expanded FMLA leave in such a situation “only when you need to, and actually are, caring for your child” and the employee is therefore unable to work/telework. The DOL goes on to state, “Generally, you do not need to take such leave if a co-parent, co-guardian, or your usual child care provider is available to provide the care your child needs.”

The DOL confirms that a school or place of care is “closed” when the physical location is closed, even if instruction is being provided online or through “distance learning.”

This reason applies only to children 18 years or younger, unless the older child has a disability and cannot care for themselves due to that disability. It also only applies to the employee’s own child (although note that the definition of “son or daughter” under the FMLA is quite broad, including those for whom the employee stands “in loco parentis” – i.e. acts as a parent, even without a formal or legal relationship).

In terms of substantiating the need for this type of CRA leave, the employee must represent that “no other suitable person” will be caring for the child during the period of leave. “Suitable persons” include a co-parent, co-guardian, or a usual child care provider. In addition, if the employee is asserting an inability to work or telework because of a need to provide care for a child older than fourteen during daylight hours, they must provide a statement that special circumstances exist requiring the employee to provide care.

Q: Who Is An “Individual” Needing Care For Purposes Of CRA Leave? (Updated 4/3/20)

A: The DOL explains that an employee may take Paid Sick Leave if they are unable to work/telework due to the need to care for an individual whose health care provider has advised self-quarantine if: (1) the individual is unable to care for themselves, (2) the individual depends on the employee for care, and (3) providing the care prevents the employee from working, including teleworking. The DOL emphasizes that the individual must “genuinely need” the employee’s care.

The DOL also defines who is an “individual” for whom care can be provided by the employee:

  • an immediate family member
  • someone regularly residing in the employee’s home
  • someone whose relationship creates an expectation that the employee would care for that person and the person depends on the employee for care during the quarantine (this can include a child who is not the employee’s child, as long as this criteria is met)

The DOL emphasizes that an employee may not take Paid Sick Leave to care for someone with whom they have no relationship. And they may not take Paid Sick Leave to care for someone who does not expect or depend on the employee’s care.

Q: Can CRA Leave Be Taken Intermittently? (Updated 4/2/20)

A: According to the DOL, employees make take intermittent Paid Sick Leave or expanded FMLA leave only if the employee and employer mutually agree, but the DOL encourages collaboration between employers and employees “to achieve flexibility and meet mutual needs.”  Note that the employer is not required to agree to the use of intermittent leave.

Specifically as to teleworking, if the employee is unable to work their normal schedule of hours, the employer may – but is not required to – allow the employee to take Paid Sick Leave and/or expanded FMLA leave on an intermittent basis, in any agreed-upon increment.

As to the use of intermittent leave in the usual workplace, the DOL is less sanguine. The DOL notes that all but one of the reasons for Paid Sick Leave are intended to prevent the employee from spreading infection, which does not comport with leave on an intermittent basis. Thus leave for those reasons can only be taken in full-day increments that continue until the leave is exhausted or there is no longer a reason to take the leave. In the latter case, the employee may take any remaining leave for another qualifying COVID-19-related reason at a later time until December 31, 2020.

The DOL observes that the only reason for which intermittent leave in the usual workplace is possible would be due to the COVID-19-related closure of the child’s school or child care. Again, the use of intermittent leave in this situation would be subject to approval by the employer.

Q: What Notice Do Employees Have To Provide Regarding Their Need For Leave? (Added 4/2/20)

A: The CRA provides that an employer can require employees to follow reasonable notice procedures after the first workday for which Paid Sick Leave is taken (other than in the case of the closure of a school or place of care, or unavailability of a child care provider, for which notice must be given as soon as practicable). “Reasonableness” will be determined under the facts and circumstances of each particular case. Generally, it will be reasonable for an employer to require oral notice and sufficient information for an employer to determine whether the requested leave is covered by E-PSL or E-FMLA. In addition, it will be reasonable for notice to be given by the employee’s spokesperson (e.g., spouse, adult family member, or other responsible party) if the employee is unable to do so personally. An employer may not require the notice to include documentation beyond what is allowed by in the regulations, as explained in our Verification Q&A. Employees can be encouraged, but not require, to give notice as soon as practicable.

If an employee fails to give proper notice, the employer should give them notice of the failure and an opportunity to provide the required documentation prior to denying the request for leave.

Q: Are Employees Entitled To CRA Leave During A Worksite Closure? (Added 3/27/20)

A: The DOL has made clear that employees are not entitled to Paid Sick Leave or expanded FMLA leave if the employer closes the worksite, regardless of whether the closure is due to economic conditions or because of a Federal, state, or local government directive (e.g. shut-down or shelter-in-place orders). If the employee is taking CRA leave when the closure occurs, any further right to leave ceases. Even if the closure is temporary, the employee may not take CRA leave during the closure. The employee may, however, be eligible for unemployment insurance benefits (although not if the employee is receiving any other form of paid leave,  whether by employer policy or state/local law).

Q: Are Employees Entitled To CRA Leave During A Furlough? (Added 3/27/20)

A: An employee is not entitled to take Paid Sick Leave or expanded FMLA leave while on furlough due to lack of work, even if the employer remains open. Again, the employee may be eligible for unemployment insurance benefits.

Q: Can Employees Use CRA Leave To Cover Reduced Hours? (Added 3/27/20)

A: If the employer reduces an employee’s scheduled work hours due to lack of work, the employee may not take Paid Sick Leave or expanded FMLA leave to cover the hours that they are no longer scheduled to work, since the reason for the reduction is not due to a listed reason, even though it may have been related to the COVID-19 pandemic.

Q: Can Employees Use CRA Leave While Receiving Unemployment Insurance Benefits? (Added 3/27/20)

A: The DOL states that employees taking Paid Sick Leave or expanded FMLA leave may not receive unemployment insurance benefits at the same time.

Q: Can Employees Use CRA Leave While Receiving Workers’ Compensation or Temporary Disability Benefits? (Added 4/3/20)

A: An employee who is receiving such benefits through an employer- or state-provided plan may not take Paid Sick Leave or expanded FMLA leave if they are unable to work. They may be eligible for CRA leave if they are on light duty.

Q: Can Employees Use CRA Leave While On A Leave Of Absence? (Added 4/3/20)

A: According to the DOL, whether an employee on a leave of absence may take Paid Sick Leave or expanded FMLA leave depends on whether the leave is voluntary or mandatory. If it is voluntary, the employee may end the leave and begin taking either Paid Sick Leave or expanded FMLA leave if a qualifying reasons prevents them from being able to work/telework. If the leave is mandatory, however, the employee may not take CRA leave. The DOL notes that, under the latter circumstance, the employee may be eligible for unemployment insurance benefits.

Q: Do Employees Continue To Get Health Insurance While Taking CRA Leave? (Updated 4/2/20)

A: Employees will be entitled to maintain their existing health coverage while on Paid Sick Leave or expanded FMLA leave. They are responsible for their normal premium contributions while on leave. If they do not return from leave, they may be eligible for health care continuation under the Consolidated Omnibus Budget Reconciliation Act (COBRA) or state mini-COBRA laws.

If an employee is in a waiting period for health coverage, the coverage will take effect upon completion of the waiting period regardless of whether the employee is on CRA leave at that point.

If an employer provides a new health plan or benefits or changes health benefits or plans while an employee is taking E-PSL or E-FMLA, the employee must be entitled to the new or changed plan/benefits just as if they were not on leave. Any other plan changes (e.g., in coverage, premiums, deductibles, etc.) which apply to all employees of the workforce would also apply to employees on FFCRA leave. Notice of any opportunity to change plans or benefits must also be given to an employee taking E-PSL or E-FMLA leave. If the employee requests the changed coverage, the employer must provide it.

The right to health care benefits stops if and when employment would have terminated if the employee were not on E-PSL or E-FMLA (e.g., if the employee fails to return from leave, or if the employer closes its business). Notice of eligibility to continue coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) must be provided.

Q: What Happens If The Employee Changes Employers? (Added 4/2/20)

A: For purposes of expanded FMLA leave, an employee will become eligible for this benefit once they meet the eligibility requirement of being employed for 30 days at a new employer, if that employer is covered by the CRA.

As to Paid Sick Leave, an employee is limited to a total entitlement of 80 hours (or the two-week pro-rated equivalent for part-time employees) of Paid Sick Leave, regardless of whether they change employers. So an employee who has taken 80 hours of Paid Sick Leave and then changes employers is not entitled to any additional Paid Sick Leave from the new employer. If they use some Paid Sick Leave and then switch employers, they may use only the remaining amount of their 80-hour Paid Sick Leave bank, assuming that the new employer is covered by the CRA,

Q: What Are The Recordkeeping Requirements Under The CRA? (Added 4/2/20)

A: An employer must keep all documentation related to an employee’s Paid Sick Leave or expanded FMLA requests for four years, regardless of whether the leave was granted or denied. In addition, if an employee provided oral statements to support their request for Paid Sick Leave or expanded FMLA leave, the employer is required to document and maintain such information in its records for four years.

Q: What If CRA Leave Is Improperly Denied? (Added 3/29/20)

A: If an employee believes that they are entitled to but have been improperly denied Paid Sick Leave or expanded FMLA leave under the CRA, the DOL “encourages” them to raise their concerns with their employer. The DOL also informs employees that they can contact the DOL’s Wage and Hour Division for assistance or to file a claim. The DOL notes that employees can also file a lawsuit against their employer for such violations (although in the case of an FMLA violation, only if the employer has 50 or more employees).

Q: What Are The Penalties For Violating The CRA’s Paid Leave Mandates? (Updated 5/7/20)

A: Under the Paid Sick Leave provision, if an employer fails to pay sick leave or takes adverse action against an employee for exercising rights under the Act, it would be considered a violation of the Fair Labor Standards Act and subject to the normal penalties under the FLSA. These include a $10,000 fine and 6 months imprisonment. In addition to an administrative complaint process before the DOL, the employee or the Secretary of Labor may also file a civil suit against the employer seeking the amount of unpaid leave, an equal amount in liquidated damages, equitable relief, attorneys’ fees and costs, and injunctive relief.

If the employer violates the expanded FMLA provision, the normal FMLA penalties apply. The employee may file a complaint with the DOL, or may file suit against the employer. The employee may recover back pay and front pay, actual monetary loss, liquidated damages in an amount equal to the pay damages, attorneys’ fees and costs, and injunctive relief. The CRA, however, provides an exemption from civil suit for employers with fewer than 50 employees.

The DOL had issued a temporary non-enforcement policy establishing a 30-day period, from March 18 through April 17, 2020, but that period has now concluded and the DOL is engaging in enforcement actions at this time.

THE CORONAVIRUS AID RELIEF AND ECONOMIC SECURITY ACT 

Q: What Is The Coronavirus Aid Relief And Economic Security Act (CARES)? (Added 5/7/20)

A: On March 27, 2020, President Trump signed the Coronavirus Aid Relief and Economic Security (CARES) Act, a $2 trillion bill that contains provisions provided relief to businesses and individuals negatively impacted by the recent pandemic. Among other things, the Act contains the following provisions of particular interest to employers: it slightly modifies the Families First Coronavirus Response Act; it provides for tax credits to incentivize employee retention; it greatly expands unemployment insurance benefits for COVID-19 reasons; and it establishes three loan programs – for small businesses and nonprofits, for medium-sized businesses and nonprofits, and for state/local governments and special businesses. The monies allocated for the loan program for small businesses and nonprofits – the Paycheck Protection Program (PPP) – were quickly exhausted.

Thus, on April 24. 2020, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act, which added funds to the PPP.  

Q: How Does CARES Affect The Families First Coronavirus Response Act? (Added 3/29/20)

A: The CARES Act amends the recently enacted Families First Coronavirus Response Act to clarify that employees who were laid off after March 1, 2020 and are rehired will qualify for COVID-19 related Paid Sick Leave and expanded FMLA as long as they worked for the employer for 30 of the 60 days prior to the layoff. In other words, the requirement that an individual be employed for 30 days to qualify for these benefits shall not exclude such rehired employees

Q: What Are The Employee Retention Credits Under CARES? (Updated 4/1/20)

A: As an incentive for employers to keep employees on the payroll, the CARES Act includes a refundable tax credit for wages, including group health insurance premiums, paid by certain employers to employees employed between March 12, 2020 and December 21, 2020.  The Internal Revenue Service has issued FAQs on the employee retention credit.

For profit employers eligible for the credit are limited to those whose business is fully or partially suspended due to government orders limiting commerce, travel or meetings due to the virus, or those whose quarterly gross receipts are less than 50 percent of gross receipts in the same quarter last year.  This eligibility ends when gross receipts recover to greater than 80 percent compared to the same quarter last year.

Nonprofit, tax-exempt 501(c)(3) employers are eligible for the credit if their operations are fully or partially suspended due to government orders limiting commerce, travel or meetings due to the virus.
“Qualified” wages has the following meaning:

  • If the average number of employees is greater than 100, qualified wages are wages paid while the employee is not providing services due to a government order, or due to a 50 percent decline in gross receipts. In other words, it applies to employees who otherwise might be laid off or terminated.
  • If the average number of employees is 100 or fewer, qualified wages are wages paid during the period when operations are fully or partially suspended OR during a period in which the employer had a 50 percent decline in gross receipts. This test does not include the “not providing services” language in the test applicable to employers with more than 100 employees.

Qualified wages for which the credit may be claimed does not include amounts paid while an employee is on paid leave pursuant to the Families First Coronavirus Response Act.

The amount of the credit is 50 percent of qualified wages subject to a ceiling of $10,000 per employee. The credit will be taken against the employer’s portion of payroll taxes, i.e., Social Security and Medicare tax.  If the credit exceeds the amount of taxes, the excess is refundable to the employer by the IRS.

The CARES Act also allows employers and self-employed individuals to defer payment of the employer share of the Social Security tax on employee wages. Half of the deferred employment tax must be paid by December 31, 2021, and the other half of the deferred employment tax must be paid by December 31, 2022.

These provisions are unavailable if the employer availed itself of the SBA loan forgiveness program in Section 1106 of the CARES Act. They are also unavailable if the employer received tax credits for Paid Sick Leave or paid FMLA leave under the CRA.

Q: How Does CARES Impact Unemployment Insurance Benefits? (Updated 4/15/20)

A: The CARES Act offers federal assistance with unemployment compensation insurance (UI) benefits. We summarize the provisions below, but Ronald Adler of Laurdan Associates has provided further detail here.

The Department of Labor issued four separate documents providing guidance to states on the various unemployment compensation programs under the Coronavirus Aid, Relief, and Economic Security (CARES) Act: the Pandemic Unemployment Assistance Program, the Pandemic Emergency Unemployment Compensation Program, Federal Unemployment Pandemic Compensation, and the CARES Act Summary of Key Unemployment Insurance Provisions. Notably, these programs work in conjunction with each other. Our detailed summary of these guidance documents can be found here.

Under these programs, benefits will be made available to individuals who normally are ineligible, such as independent contractors and self-employed individuals (the Pandemic Unemployment Assistance Program).  Benefits may be extended for an additional 13 weeks for those who exhaust normal UI benefits (the Pandemic Emergency Unemployment Compensation Program). In addition, eligibility for UI benefits will be extended to individuals who are not eligible for regular or extended UI benefits (including those who have exhausted benefits) who certify that they are otherwise available for work within the meaning of UI rules but are unemployed (or partially unemployed), or are unable or otherwise unavailable for work for any of the following reasons:

  • The individual has been diagnosed with COVID-19 or has symptoms of COVID-19 and is seeking treatment;
  • A member of the individual’s household has been diagnosed with COVID-19 or has symptoms of COVID-19 and is seeking treatment;
  • The individual is providing care for a family or household member who has been diagnosed with COVID-19;
  • A child or other person in the household for whom the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a result of the COVID-19 public health emergency and such care is required in order for the individual to be able to perform work;
  • The individual is unable to reach the place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency;
  • The individual is unable to reach the place of employment because the individual has been advised by a healthcare provider to self-quarantine due to concerns related to COVID-19;
  • The individual is scheduled to start employment and does not have a job or is unable to reach the job as a direct result of the COVID-19 public health emergency;
  • The individual has become the sole breadwinner or major support of the household because the head of the household has died as a direct result of COVID-19;
  • The individual has had to quit his or her job as a direct result of COVID-19;
  • The individual’s place of employment is closed as a direct result of the COVID-19 public health emergency; or
  • The individual meets other criteria established by the DOL Secretary for unemployment assistance.

On top of these extended benefits, individuals who meet the criteria for eligibility will be entitled to an additional $600 per week above the amount allowed for benefits under state law for up to four months (Federal Unemployment Pandemic Compensation). These additional payments are funded by the federal government.

Notably, individuals who are able to work or telework are not eligible for benefits, nor are those who are receiving paid leave under the Families First Coronavirus Response Act, regardless of whether they meet one of the above criteria.

Q: What Is The Loan Program For Small Businesses And Non-Profits Under CARES? (Updated 4/1/20)

A: Non-profits and small businesses are eligible for forgivable loans under the “Paycheck Protection Program.” This program provides small businesses and nonprofits with forgivable loans to fund payroll and other costs incurred between February 15 and June 30, 2020 as an incentive to keep employees on the payroll. Under the program, the federal government will essentially give an employer 2.5 times its monthly payroll, to use for paying wages, rent, mortgage interest and utilities.

Eligibility. Any business or non-profit is eligible if it has no more than 500 employees, however, in many industries, the size standard is much larger. Employers may look up the size standards here: https://www.sba.gov/document/support–table-size-standards. For this purpose, employees of the business include part-time and temporary agency employees. Special rules for hotels and restaurants and for franchises allow their size to be determined per physical location. Gig economy workers (sole proprietors, independent contractors and certain self-employed individuals) are also eligible. The CARES Act establishes other loan programs for employers too large for the Paycheck Protection Program, as explained in the next several Q&As.
Amount: Employers can receive 2.5 times average their monthly payroll cost, taking into account salaries, wages, commissions, tips, paid leave, severance pay, health insurance premiums, retirement benefits, and state and local payroll taxes. There is a cap of $10 million. In calculating the loan amount, employers cannot take into account compensation exceeding $100,000 per year per person, or sick leave or family leave for which a payroll tax credit is allowed under the CRA.

Use: Employers can use the money for payroll (including paid leave), continued health insurance coverage, mortgage interest, rent and utilities incurred from February 15 to June 30, 2020. The loan cannot be used to pay wages at a rate exceeding $100,000 per year.

Forgiveness: The entire amount of the loan will be forgiven, provided it is used for costs incurred or payments made for payroll, mortgage interest, rent and utilities during an 8 week period beginning on the date of origination of the loan. The amount forgiven will be proportionally reduced if the employer reduces the number of employees during the period or if it reduces wages more than 25 percent for any employees, during the period February 15 to June 30, 2020. Employers who cut payroll after February 15 can avoid the reduction by restoring the cuts by June 30. The Act requires that employers apply for forgiveness, with documentation. The amount of the forgiven loan is not taxable income.

Application Process: Applications for the Paycheck Protection Program can be found on the U.S. Treasury Department website. The loans will be made through Small Business Administration approved banks and commercial lenders. The SBA’s on-line referral tool is here. To apply, an employer will not have to show that it cannot obtain other financing, which is normally an SBA loan requirement. It does have to certify “that the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient,” that the loans will be used for the purposes described above, and that the applicant is not making a duplicative application or seeking a duplicative loan.

Effect on Employee Retention Credit: An employer that takes a Paycheck Protection Program loan is not eligible for the 50 percent payroll tax credit for employees subject to closure under Section 2301 of the CARES Act.

Q: What Is The Loan Program For Mid-Sized Businesses And Non-Profits Under CARES? (Added 3/29/20)

A: The CARES Act also creates a program for mid-sized businesses (and non-profits, where “practicable”), defined as having between 500 and 10,000 employees. The interest rates for these business loans shall be capped at 2%, and the borrower will not be required to pay principal and interest for at least the first 6 months. Eligible borrowers must make several good faith certifications to receive this loan, including that the funds received will be used to retain at least 90 percent of the recipient’s workforce, at full compensation and benefits, until September 30, 2020, not paying dividends, not abrogating collective bargaining agreements, and not outsourcing or offshoring jobs for the term of the loan and 2 years after completing repayment of the loan.

This program, however, may negatively impact employer labor relations strategies. Specifically, employers will be required to maintain neutrality regarding union organizing efforts during the term of the loan. During that time, employers will be unable to notify employees about the potential risks of unionizing. For example, the employer would be prohibited from discussing the costs of unionization (union dues), risks of strikes, or even the mere fact that the employer is not obligated to agree to union proposals during collective bargaining. Such statements are typically protected by the National Labor Relations Act. As a result, employees are likely to only hear one side of the argument – the union’s side, which often includes unrealistic promises – which increases the likelihood that employees will choose union representation.

Q: What Is The Loan Program For State And Local Governments And Special Businesses Under CARES?

A: To cover losses due to COVID-19, the Act appropriates money for negotiated loans to state and local governments and businesses, such as air carriers, businesses critical to national security, and financial firms.  Recipients are required not to reduce employment levels by more than 10 percent.

WORKPLACE SAFETY AND HEALTH

Q: What General Safety And Health Obligations Do Employers Have With Regard To Their Workplace?

A: The Occupational Safety and Health Administration oversees workplace safety and health, and establishes relevant workplace standards. There is no specific standard for respiratory diseases like COVID-19 in the workplace. Under the Occupational Safety and Health Act, however, employers are required to provide a safe and healthy working environment, which would include taking appropriate steps to prevent and address COVID-19 in the workplace. Employers must furnish a place of employment free from recognized hazards that may cause death or serious physical harm.  Employers should conduct a workplace hazard assessment and take control measures. OSHA has provided detailed and specific guidance to employers on the recommended actions to take during this current COVID-19 emergency.

Q: What Measures Should Employers Take With Regard To Workplace Hygiene And Disinfection? (Updated 4/9/20)

A: Employers should communicate with and train employees on its expectations of hygiene, which should be consistent with current CDC and OSHA guidance. According to that guidance,

Employees should be trained or reminded to take preventive steps in the workplace to avoid spreading 2019-nCoV as well as other infections, like the flu or a cold. These steps include:

  • Washing hands frequently with soap and water for at least 20 seconds at a time.
  • Using an alcohol-based hand sanitizer in areas without soap and water.
  • Covering the mouth and nose with a tissue or sleeve (not hands) when coughing or sneezing.
  • Staying at least 6 feet away from others.
  • Refraining from touching face.
  • Refraining from using other employees’ equipment.
  • Staying home if they are showing any symptoms of COVID-19 or other illness.
  • Seeking medical treatment immediately if symptoms appear following travel or other exposure to 2019-nCoV. The CDC suggests calling ahead to the medical center or doctor’s office before arriving, to allow them to prepare to minimize contact with other patients.
  • Reporting to a designated Company official if the employee or household member has been diagnosed with or exposed to COVID-19.

Employers should also take the following steps to facilitate prevention and mitigation in the workplace:

  • Review sick leave policies to ensure that they are flexible, and communicate them to employees.
  • Report diagnoses and possible exposure to the local Department of Health, which will provide further guidance on appropriate steps for the employer to take.
  • Provide soap and handwashing facilities.
  • Provide alcohol-based hand sanitizer.
  • Provide cleaning spray and/or wipes.
  • Provide tissues.
  • Perform regular housekeeping, with particular attention to sanitizing and disinfecting frequently-touched surfaces (e.g. light switches, door handles, desktops, countertops, refrigerator and cabinet handles, etc.), using the appropriate products that meet EPA’s criteria for use against SARS-CoV-2.
  • Review building ventilation to increase ventilation rates and increase the amount of outdoor air.
  • Place OSHA’s new posters on “Hand Hygiene”and “Help Stop the Spread” at the entrance to the workplace and in other workplace areas where they are likely to be seen.

Q: Must Employers Permit Employees To Wear Gloves, Masks, Or Other Personal Protective Equipment? (Updated 4/9/20)

A: The CDC is recommending the use of cloth masks for the general public. With certain exceptions (e.g. healthcare), the CDC does not currently recommend use of medical masks, respirators and gloves (personal protective equipment or “PPE”).  Employers are not required to allow the use of PPE unless the employee has a disability and his or her doctor has identified the use of a medical mask, respirator, or gloves as a possible accommodation. If that is the case, the employer should engage in an interactive discussion with the employee regarding the requested accommodation. The employer may obtain relevant medical information regarding the employee’s condition and how the use of PPE would be a reasonable accommodation.

Under OSHA’s respiratory protection standard, 29 C.F.R. § 1910.134, a respirator (which includes N-95 safety masks) must be provided by the employer “when such equipment is necessary to protect the health of such employees.” The rule also provides that “an employer may provide respirators at the request of employees or permit employees to use their own respirators, if the employer determines that such respirator use will not in itself create a hazard.” (Emphasis added). The language does not require employers to permit such use, absent the need to protect the health of the employee.

Q: What If The Employer Chooses To Allow Employees To Wear A Mask Or Gloves? (Updated 4/9/20)

A: If employees are permitted to wear medical masks, respirators, or gloves (personal protective equipment or “PPE”) at at their choice, there may be employer obligations relating to their use. There are no such obligations if the employee is using a standard surgical mask or cloth mask, because that is not considered a respirator under the OSHA respirator standard. If they are using a NIOSH 95 (N95) mask, however, it is considered a respirator and OSHA has stated that the employer must provide Appendix D of the OSHA respiratory standard to such employees. The employer does not need to provide any further information or take any additional actions beyond that.

If employers permit the use of nitrile gloves, they must conduct training on their use, § 1910.132(f).

Q: May The Employer Require Employees To Wear A Mask Or Gloves? (Added 4/15/20)

A: Employers may require employees to use a cloth mask or PPE (assuming that such equipment is available; we encourage employers to reserve PPE for the healthcare industry). If employers choose to require the use of masks or gloves, they should consider providing those items for employees’ use (in some states, they will be required to provide such equipment or reimburse employees for their cost). If an employee has a disability that prevents them from using masks or gloves, the employer must engage in the interactive process under the Americans with Disabilities Act to determine if a reasonable accommodation can be provided to the employee without undue hardship.

Q: How Else Can Employers Protect Their Employees Still Working On Site? (Updated 4/9/20)

A: Employers should encourage “social distancing.”  Employees should keep a reasonable distance (at least six feet) from other employees.  Some ideas for social distancing include:

  • Relocating work stations or desks to maximize distance.
  • Staggered work schedules to decrease the number of employees in the workplace at once.
  • Split shifts, under which employees alternate coming to work and teleworking.
  • Eliminate or modify shared meals for employees.
  • Suspend or limit on site and off site group meetings. These may actually be required under state emergency orders.
  • Consider closing offices to visitors and the public, if possible
  • Increasing physical space between employees and customers.
  • Downsizing operations.
  • Delivering services remotely.
  • Delivering products through curbside pickup or delivery.

The CDC has also issued guidance on cleaning and disinfecting, including at the workplace. Of note, the CDC has also provided additional considerations specific to employers.  In particular, employers should:

  • Educate workers performing cleaning, laundry, and trash pick-up to recognize the symptoms of COVID-19.
  • Provide instructions on what to do if employees develop symptoms within 14 days after their last possible exposure to the virus.
  • Develop policies for worker protection and provide training to all cleaning staff on site prior to providing cleaning tasks. Such training should include when to use personal protective equipment (PPE), what PPE is necessary, how to properly put on, use, and take off PPE, and how to properly dispose of PPE.
  • Ensure workers are trained on the hazards of cleaning chemicals used in the workplace in accordance with OSHA’s Hazard Communication standard.
  • Comply with the Occupational Safety and Health Administration’s (OSHA) standards on Bloodborne Pathogens, including proper disposal of regulated waste, and PPE.

Q: May Employers Require Testing Before Allowing Employees To Return To The Workplace? (Added 5/7/20)

A: Yes. According to the EEOC, under the current circumstances, employers may administer (or require to be administered) a test to employees before they enter the workplace to determine if they have the virus. Employers should ensure that such tests are accurate and reliable, in accordance with guidance from the U.S. Food and Drug Administration. Keep in mind, however, that there may be false negatives or positives, and that testing will not reveal future infection.

TELECOMMUTING

Q: Should Employers Permit Employees To Work Remotely?

A: Employers must assess their ability and capacity to permit remote work.  Employers should test their capabilities for remote work as soon as possible.  Permitting employees to work remotely is a good option where feasible.  Doing so will also reduce the risk of creating an unsafe work environment as such employers will be following the guidance of public health officials. If remote work is permitted or required, employers should consider the following:

  • Whether employees have the necessary equipment and remote access
  • Security considerations for company equipment and information.
  • Whether employees have a safe work environment at home. While OSHA does not govern home workspaces, any illness or injuries resulting out of telework may be subject to the reporting requirement under OSHA.
  • Workers’ compensation may apply to illnesses or injuries suffered in the course of teleworking.
  • Establish clear expectations regarding schedules, availability, and modes of communication.

Reinforce that employees are expected to maintain productivity and quality standards while working remotely.

Q: Must Employers Cover Equipment Costs For Telecommuting Employees?

A: Employers should consider providing remote work equipment to their employees, or reimbursing employees for the necessary equipment.  Federal law does not require reimbursement, however employers must reimburse employees to the extent such costs brings a non-exempt employee’s wages below minimum wage.  As to exempt employees, requiring them to bear the cost or deducting such costs from their salary would violate the salary basis requirement, and thus the employer should cover any related telecommuting costs for these employees. Employers must also be mindful of state laws addressing reimbursement of business expenses, as some states require employers to cover any such costs.

Additionally, if remote work equipment is considered a reasonable accommodation under the ADA, the employer must cover the expenses. Similarly, the ADA requires that reasonable accommodations be provided to enable disabled employees to enjoy the terms and privileges of employment; so if the employer if the employer is permitting employees to telework, they may need to provide equipment to disabled employees that would allow them to work remotely.

Q: If Employers Permit Remote Work, Are They Setting A Precedent?

A: Employers must be mindful that when deciding whether employees can work remotely, they may be setting a precedent for future reasonable accommodation requests under the ADA.  Employers must provide reasonable accommodations to qualified individuals with disabilities unless doing so will present an undue hardship.  Telecommuting may be a reasonable accommodation where the employee can perform the essential functions of his or her job from home.  Remote work arrangements in response to COVID-19 may undermine employers’ ability to validly decline telecommuting requests as a reasonable accommodation moving forward.

The employer, therefore, must carefully consider whether the essential functions of the job can adequately be performed at home.  If an employer permits telecommuting where it would not generally do so, it should make clear that it is making such accommodations as a result of the extraordinary circumstances of COVID-19 and this does not serve as a precedent moving forward. Consider requiring employees to execute telework agreements that make clear that this is a temporary measure, and that teleworking full time does not permit the employee to perform all essential functions of the employee’s job.

Q: How Do Employers Compensate Employees Working Remotely?

A: Non-exempt employees should accurately track their working time and be paid for all time spent working, in accordance with all federal, state, and local laws.  Employers should ensure that there is a means by which employees can easily record their time, whether electronically or even on paper.

Exempt employees must be paid their full salary if they perform any work during the workweek, which could involve tasks as minor as regularly checking email.

Q: What Reasonable Accommodations Must Be Provided to Enable Disabled Employees to Telecommute? (Added 3/23/20)

A: Under the Americans with Disabilities Act, employers must provide reasonable accommodations to employees with disabilities to enable them to perform their essential job functions or to enjoy the privileges and benefits of employment. If the employee requires workplace accommodations, such as specialized equipment, the employer may need to ensure that the employee continues to have access to such accommodations when working at home. The employer should engage in the required interactive discussion to determine whether such at-home accommodations are reasonable under the circumstances.

The EEOC recognizes, however, that under the current circumstances, there may be delays in the normal interactive process. It encourages employers and employees to use interim solutions to enable the employees to continue working.

TRAVEL

Q: How Should Employers Handle Business Travel?

A: Currently, it is best practice, and may be mandated by state and local government, to avoid all non-essential business travel.  Employers should explore substitute options for travel, such as teleconferencing and video conferencing.

Employers can still require essential business travel at this time.  Employers should carefully decide what travel is essential.  They should, however, avoid requiring any business travel to all CDC Level 2/3 countries.

We note that all public health agencies and governmental authorities are recommending that any travel be avoided. In some cases, travel may even be prohibited. Please check for any applicable restrictions before requiring any travel.

Q: What If Employees Express Concern Regarding Travel?

A: Assuming that travel is still being permitted by governmental authorities and the travel is deemed essential, if employees express concerns regarding the means of travel, or travel in and of itself, the employer should perform a risk assessment.  Assess the location of travel and means of travel.  Air travel will potentially pose a greater risk than driving.  Evaluate risk factors possessed by the employee such as age, pregnancy, underlying medical conditions, and mental health disorders.  Employers should assess whether ADA accommodations are available that pertain to travel.  If an employee expresses concern regarding travel, evaluate other options such as teleconferencing, videoconferencing, or whether another employee can travel instead.

Q: Can Employers Place Limits On Personal Travel?

A: Employers can require compliance with CDC travel restrictions.  Whether other travel may be prohibited depends on state law.  Some states have legal off-duty conduct laws that prohibit employers from taking any adverse employment action based on such conduct, which would include travel.

Employers can and should require employees traveling to CDC Level 2 or 3 countries or areas of outbreak to self-quarantine for 14 days before return to work, even if the employee exhibits no symptoms. At this time, many employers are taking the precaution of requiring such self-quarantine for any travel, given the increasing community spread occurring within the U.S.  If such self-quarantine is not required by the employer, it can still require employees traveling to non-outbreak areas to self-monitor and report any COVID-19 symptoms or exposure to COVID-19.

In addition, we believe that an employer may deny an employee’s request for leave (during which the employee would travel) based on the negative impact on the business if the leave were to be granted – i.e. that following the leave, the employee would have to remain out of work for an addition 14 days. This assumes that the employee could not telework during the 14-day period.

EMPLOYEES WITH SYMPTOMS OF OR EXPOSED TO COVID-19

Q: Can Employers Require An Employee To Notify Them If They Have Been Exposed To COVID-19, Have Symptoms, Or Tested Positive?

A: Yes, such employees should be required to notify their supervisors if they are experiencing symptoms of, if they have been diagnosed with, or if they have been exposed to COVID-19. An employee with COVID-19 poses a direct threat to the health and safety of others, and therefore employers are entitled to know about any such diagnosis.

Q: What Restrictions Does The ADA Place On Employers’ Ability To Ask Questions About An Employee’s Health Or Medical Condition? (Updated 3/23/20)

A: The ADA restricts medical inquiries to those that are job related and consistent with business necessity.  This standard is met if the employer has a reasonable belief that the employee poses a direct threat to the health or safety of the individual or others in the workplace.

Employers are generally prohibited from asking employees whether they have compromised immune systems or a health condition that would make them more susceptible to COVID-19.  The EEOC has now announced, however, that the COVID-19 emergency constitutes a direct threat, as determined by the CDC and public health officials.  Therefore, employers may ask employees whether they have compromised immune systems or chronic health conditions that makes them more susceptible to COVID-19. This information can be used for business planning purposes, in case these individuals are affected by COVID-19, but should not be used to force employees out of the workplace, as that may lead to a discrimination claim.

Q: Can Employers Ask Employees Whether They Have Been Experiencing Symptoms Of Illness? (Updated 4/15/20)

A: Yes. The Equal Employment Opportunity Commission has released guidance with regard to the current COVID-19 pandemic, which also relies on their earlier pandemic guidance. According to the EEOC, asking about an employee’s symptoms is not a medical inquiry. Therefore, employers may ask if employees are experiencing symptoms of COVID-19.

As mentioned above, employers may always require employees to report if they are diagnosed with COVID-19.  Employers must maintain all information about employee illness as a confidential medical record in compliance with the ADA. COVID-19-related information may be retained in existing employee medical files; new COVID-19-specific files are not required.

Q: May Employers Take Employees’ Temperatures To Determine Whether They Are Infected? (Updated 4/15/20)

A: While the EEOC takes the position that taking an employee’s temperature is generally an improper medical examination, under the current circumstances the EEOC has revised its guidance to state that employers may take do so during the COVID-19 pandemic, as the situation has risen to the level of a direct threat.

As a practical matter, temperature readings are not always accurate.  Additionally, an individual with COVID-19 does not always have a fever or symptoms, so a temperature check may not be the most effective method to protect the workplace and it may instill a false sense of security amongst employees.

Employers who conduct daily temperature checks may retain a confidential log of the results.

Q: How Else Are Employers Permitted To Screen Employees To Protect Against COVID-19?

A: Employers may conduct other non-medical screenings by asking employees about travel or close contact with an individual who has traveled to an area of outbreak.  Employers may also ask employees about possible exposure to COVID-19 or household members’ exposure to COVID-19.  When screening employees, exercise caution to ensure employees are not targeted for screening based on race or national origin.  Preventative measures and screening should be implemented and enforced uniformly and consistently.

Q: Are Employers Permitted To Screen Visitors?

A: Employment laws do not apply to visitors.  Employers may conduct screening to determine whether a visitor has travelled to or had close contact with someone who has traveled to an area of outbreak.  Employers may also ask about possible exposure to COVID-19, and whether the prospective visitor is experiencing symptoms of illness. Employers can ban all or some visitors from the workplace. Some employers, in fact, may be required to ban or restrict visitors under emergency state directives.

Q: Are Employers Permitted to Screen Applicants? (Added 3/23/20)

A: According to the EEOC, employers may screen applicants for COVID-19 symptoms and exposure and take their temperature after a conditional offer of employment has been made, as long as it does so for all entering employees in the same type of job. Employers may also delay the start date, or even withdraw a job offer, if the applicant has COVID-19 and cannot start work immediately if required.

Q: What Are Employers’ Reasonable Accommodation Obligations During The COVID-19 Pandemic? (Added 5/7/20)

A: The Americans with Disabilities Act requires employers to provide reasonable accommodations to employees with disabilities to enable them to perform the essential functions of their jobs or to enjoy equal benefits and privileges of employment. This obligation continues regardless of the pandemic, and applies equally to critical infrastructure or essential workers. Thus employers must engage in the interactive process with all employees with regard to any request for accommodation, which includes obtaining medical information to support the request where the need for accommodation is not obvious, as well as an exploration of possible accommodations. Because of the pandemic and if the need is urgent, however, employers may choose to forego or shorten the exchange of information and provide an accommodation on a temporary basis, subject to changing circumstances.

Accommodations need not be provided if they pose an undue hardship. The circumstances of the pandemic may cause an undue hardship where it would not have done so prior to the pandemic. The EEOC recognizes that current circumstances may create “significant difficulty” in acquiring or providing certain accommodations. For example, it may be significantly more difficult at the current time to conduct a needs assessment or to obtain certain items required for an accommodation. Additionally, it may be significantly more difficult to provide temporary assignments, to remove marginal functions, or to readily hire temporary workers for specialized positions. 

Moreover, the EEOC acknowledges that, while expense is not normally a significant consideration (as compared with an employer’s overall budget and resources), current economic conditions, such as the loss of some or all of the employer’s income stream or the amount of discretionary funds available in consideration of other expenses, makes expense relevant to the undue hardship assessment. The employer must still weigh the cost of an accommodation against its current budget, and must consider no-cost or low-cost alternatives.

Q: What Are Employers’ Obligations With Regard To Employees With Mental Health Conditions Triggered By COVID-19? (Added 3/23/20)

A: Under the Americans with Disabilities Act, employers must provide reasonable accommodations to employees with disabilities, including mental health conditions. Such conditions could, in fact, be triggered by fears about the current COVID-19 pandemic. With regard to employees reporting such mental disabilities, the employer must engage in the requisite interactive process under the ADA. The employer is entitled to obtain information from the employee’s health care provider to establish that the employee does, in fact, have a disability and to identify possible accommodations. Whether such accommodations are reasonable or pose an undue burden are part of the interactive process.

Q: Must Employers Provide Reasonable Accommodations To Employees At Greater Risk From COVID-19? (Updated 5/7/20)

A: If an employee has a disability that puts them at a greater risk from COVID-19, employers may need to provide reasonable accommodations to eliminate possible exposure and reduce the “direct threat” of harm to the employee’s health that is posed in the workplace. According to the EEOC, these may include additional or enhanced protective gowns, masks, gloves, or other gear beyond what the employer may generally provide to employees returning to its workplace.  Accommodations also may include additional or enhanced protective measures, for example, erecting a barrier that provides separation between an employee with a disability and coworkers/the public or increasing the space between an employee with a disability and others.  They ma also include elimination or substitution of particular “marginal” functions (but not the “essential” functions of a particular position).  In addition, accommodations may include temporary modification of work schedules to minimize contact with co-workers or the public, including while commuting, or moving the location where work is performed.

Q: What Is The CDC’s Rule On Essential Workers’ Ability To Work Following Exposure? (Added 4/9/20)

A: In order to ensure continuity of operations of essential functions, the CDC has issued guidance that critical infrastructure workers may be permitted to continue work following potential exposure to COVID-19, provided they remain asymptomatic and additional precautions are implemented to protect them and the community. The CDC states that such exposed workers may continue to work, but the following actions should be taken:

  • Pre-Screen: Employers should measure the employee’s temperature and assess symptoms prior to them starting work. Ideally, temperature checks should happen before the individual enters the facility.
  • Regular Monitoring: As long as the employee doesn’t have a temperature or symptoms, they should self-monitor under the supervision of their employer’s occupational health program.
  • Wear a Mask: The employee should wear a face mask at all times while in the workplace for 14 days after last exposure. Employers can issue facemasks or can approve employees’ supplied cloth face coverings in the event of shortages.
  • Social Distance: The employee should maintain 6 feet and practice social distancing as work duties permit in the workplace.
  • Disinfect and Clean work spaces: Clean and disinfect all areas such as offices, bathrooms, common areas, shared electronic equipment routinely.

Obviously, if an employee starts showing symptoms of COVID-19, they must immediately be removed from the workplace and quarantined. The employer must perform a deep-cleaning of the workspace, and other employees who have come into contact with that employee would be considered exposed and subject to the actions above.

Q: What If An Employer Requires Employee(s) To Self-Quarantine Because Of Exposure To COVID-19? (Updated 4/2/20)

A: FMLA does not apply because such a quarantine does not meet the definition of a “serious health condition.”  State FMLA provisions may provide more protection.  Unemployment insurance benefits may apply depending on state law interpretation. The U.S. Department of Labor has issued guidance that states have the discretion to grant such benefits where an individual is quarantined with the expectation of returning to work after the quarantine is over or an individual leaves employment (temporarily) due to a risk of exposure or infection.

Note that if the employee’s health care provider advises self-quarantine because of possible exposure, the employee will be entitled to Paid Sick Leave under the CRA.

Q: What If The Government Requires Quarantine? (Updated 4/9/20)

A: State law may provide employment protections for employees under health care or government mandated quarantines (e.g. Maryland).  FMLA may apply as well, if the employee is being checked on a regular basis by a health care provider at the behest of the government, since that may meet the required definition of a serious health condition (which covers continuing treatment, including seeking a diagnosis, by a health care provider on two or more occasions within 30 days).

As noted above, states have the discretion to grant unemployment benefits under such circumstances. Washington and Rhode Island have passed emergency legislation specifically providing for unemployment insurance benefits in such a scenario.  The CRA also encourages coverage for COVID-19-related reasons.

State and local sick leave laws may allow use for quarantines. Paid family leave benefits laws may also apply.

The CRA also provides Paid Sick Leave that may be used for this purpose.  Notably, the DOL’s CRA regulations provide that governmental shut-down or stay-at-home orders constitute a quarantine order under the CRA for purposes of accessing Paid Sick Leave. The right to such Paid Sick Leave is not automatic, however. The employer must have work and the employee must be unable to perform that work in order to use Paid Sick Leave. If the business is closed or the employee is laid off because of the shut-down or stay-at-home order, Paid Sick Leave would not be available to the employee, although they may be eligible for unemployment insurance benefits.

Q: In The Event Of A Quarantine, How Are Employees Paid?

A: Exempt employees are paid for a full week of work if they do any work during the week. This includes checking email on their phones.  Exempt employees can be told not to perform any work during a full week and they will not be paid for the week (assuming no other paid leave protections apply).  Additionally, exempt employees can be required to use paid vacation or PTO to cover partial weeks so that they still receive a full week of pay.  They must be paid for a full week if they do not have paid leave to cover such time.  If sick leave applies and the exempt employee has no sick leave left, employers can deduct whole day absences. Bear in mind that employees receive Paid Sick Leave if their employers are covered under the CRA.

Non-exempt employees are paid for all time spent working, and must accurately track hours worked.  Non-exempt employees may be required or allowed to use PTO or vacation.  Employers should consider allowing the use of sick leave, if not mandated by state law.  Non-exempt employees will receive Paid Sick Leave if their employer is covered under the CRA.

Q: Do School Closures Impact Payment Obligations?

A: The state or local sick leave laws in some jurisdictions will apply in the event of school closures.  Employers are encouraged to permit employees to use paid leave, including sick leave, to cover resulting absences.  Additionally, covered employees will receive Paid Sick Leave and paid expanded FMLA leave under the CRA for this purpose.

EMPLOYEE REFUSAL TO WORK

Q: Can An Employee Refuse To Work Because Of Concerns About Workplace Safety? (Updated 4/9/20)

A: OSHA has provided guidance as to when an employee may refuse to work because of safety concerns. https://www.osha.gov/right-to-refuse.html. This guidance states that an employee may refuse to perform a task if all of the following conditions are met:

  • Where possible, the employee has asked the employer to eliminate the danger, and the employer failed to do so; and
  • The employee refused to work in “good faith.” This means that the employee must genuinely believe that an imminent danger exists; and
  • A reasonable person would agree that there is a real danger of death or serious injury; and
  • There isn’t enough time, due to the urgency of the hazard, to get it corrected through regular enforcement channels, such as requesting an OSHA inspection.

If an employee expresses a concern about coming to work because of possible exposure to COVID-19, employers should assess whether the employee is more susceptible to the virus due to age, pregnancy, or an underlying medical condition (the latter two may trigger obligations under the Americans with Disabilities Act, although at least one court has held that the possibility of become disabled is not covered by the ADA).  Employers should also assess whether an employee refusing to work has a reasonably held concern, such as regarding other individuals visiting the workplace from areas of outbreak, being allowed to use gloves or masks, or even just a generalized fear of leaving home at this time.

If the concerns are not reasonable, the employer may insist that the employee report to work and may take appropriate disciplinary action against those who refuse to do so. However, under the current circumstances, with the increasing community spread of COVID-19 and the governmental limitations or directions to remain at home as much as possible, we believe that generalized fears of exposure may not necessarily be deemed unreasonable.

Notably, some employers have concerns that treating older employees differently than younger ones may be a violation under the Age Discrimination in Employment Act or state antidiscrimination laws. We note that, given the medical fact that such individuals are more susceptible to the virus or may experience more serious outcomes, and given the governmental recommendations that such older individuals stay home as much as possible, permitting older individuals to stay home while not extending that courtesy to younger employees will not likely be considered a violation of antidiscrimination laws at this time.  Note that if an employee is staying home in compliance with a governmental advisory, such as for older workers or those with underlying health conditions, they may be eligible for Paid Sick Leave under the Families First Coronavirus Response Act.

If several employees express common concerns as a group, or one employee speaks on behalf of a group, it may be considered protected concerted activity under the National Labor Relations Act.  This is true in both unionized and non-unionized workplaces.  Employees need only have a “reasonable held, good-faith belief that the health or safety conditions being protested are unsafe,” and the conditions need not actually be unsafe.  Employees engaging such in concerted activity remain protected even where they are honestly mistaken about the conditions believed to be unsafe.  Therefore, employers may not discipline employees engaging in protected concerted activity who refuse to work based on the reasonably held, good-faith belief that working conditions are unsafe.  Employers must examine such situations on a case-by-case basis, and should consult with counsel regarding what actions, if any, they can take as to these employees.

The Department of Labor has specifically reminded employers that they cannot retaliate against employees who express concerns about workplace safety during this COVID-19 pandemic.

EMPLOYEES TESTING POSITIVE FOR COVID-19

Q: What Should An Employer Do If An Employee Tests Positive For COVID-19? (Updated 4/15/20)

A: Isolate and immediately send the employee home. Immediately contact the local Department of Health for guidance on what steps should be taken. At a minimum, however, the employee should remain at home for 14 days, or until they have been cleared to return to work by their health care provider.  They will be entitled to Paid Sick Leave under the Families First Coronavirus Response Act.

The employer should communicate with those who may have been in contact with the infected employee. Therefore, employers should ask the employee with whom he or she came into contact in the last 14 days. These individuals should be informed, without disclosing the name of the infected employee, that they have been exposed to an individual who has tested positive, that the Health Department has been contacted and the company is following all recommendation of the Department, and identify those recommendations. This will almost certainly include a 14-day quarantine period for those individuals, with self-monitoring.

There are also reporting requirements. Employers should inform the Department of Health and CDC of a positive test, and may disclose the name of the infected employee. In cases of work-related infections, there may also be reporting requirements under the Occupational Safety and Health Act, as discussed further below. Also, it may also be a workers’ compensation event, requiring employers to notify their workers’ compensation carrier.

Employers should also ask the infected employee to identify all areas in the office where they were physically present in the previous 14 days.  Deep clean the employee’s work area, surrounding areas, and all areas the employee indicated he or she was physically present during the previous 14 days.  Building management should be called so they can take precautionary sanitizing and notification measures.

Remember that any medical information received with regard to this situation is considered confidential medical information under the ADA, the FMLA, and, if the employer is a covered entity, the privacy provisions of the Health Insurance Portability and Protection Act (HIPAA). Any written information must be kept in a separate and secure medical file. This information should only be shared with management officials on a need to know basis. If other employees must be informed that they may have been exposed, the name of the infected employee must not be shared as part of the communication. While, realistically, other employees will know who the infected individual is, employers may not disclose that information.

Q: What Actions Should Employers Take When an Employee Exhibits Symptoms of COVID-19 or Has Been Exposed to Someone With COVID-19? (Updated 4/2/20)

A: If an employee is at work when they report symptoms of COVID-19, they should be immediately isolated from others and sent home. They should also be instructed to follow up with a health care provider and update the employer as to whether the health care provider believes it may be COVID-19 or some other illness.   If the health care provider advises that they self-quarantine, they will be entitled to Paid Sick Leave under the Families First Coronavirus Response Act.

If an employee exhibits symptoms of or reports that they have been exposed to COVID-19, we recommend contacting the local Department of Health for further guidance on next steps. Such steps may include quarantining the employee, communicating with other employees about possible exposure, and possibly quarantining other employees. In our experience thus far, it appears that the latter two actions are not being required by the Departments of Health where the employee has been exposed to COVID-19 but is not showing symptoms; nonetheless employers may make the decision that such steps are appropriate.

Notably, when informing others about possible exposure to the infected employee, the employer must not disclose the employee’s name, as that would be a violation of the duty to keep medical information confidential. As a practical matter, it is likely that other employees can easily figure out who the infected employee is, but that does not relieve the employer from its duty to maintain employee confidentiality.

The employer should perform deep cleaning of any work areas where an infected employee has been present.

Q: Is An Employee Who Contracts COVID-19 Protected Under The Americans With Disabilities Act?

A: Employees are protected by the Americans with Disabilities Act (ADA) if they have a disability, have a history of a disability, or are regarded as having one. A disability is a substantial limitation of a major life activity. Because COVID-19 is a transitory and typically minor condition for most people, it will generally not be considered a covered disability. Complications from COVID-19, such as difficulty breathing, may substantially limit a major activity and implicate the ADA.

Employers must ensure not to make assumptions about an employee’s illness and treat them as disabled, as they risk a “regarded as” claim under the ADA.

Q: Is An Employee Who Contracts COVID-19 Protected Under The Family And Medical Leave Act? (Update 4/2/20)

A: Under the Family and Medical Leave Act, employees may receive up to 12 weeks of unpaid leave for their own serious health condition. COVID-19 does not necessarily rise to the level of a “serious health condition,” as mild cases are similar to the flu, which is not a covered serious health condition absent complications. Certainly more serious infections would meet that standard. At this point, given the intense focus on COVID-19 protections, however, employers may wish to err in favor of coverage even for those mild cases, if so desired by the employee. On the other hand, if the employee’s COVID-19 infection would not be considered a serious health condition, it should not be counted as FMLA leave, as that would deprive the employee of access to that leave if he or she later experiences a true serious health condition. Illnesses other than COVID-19, unless they are sufficiently severe, would not be covered by FMLA.

The employee will be entitled to Paid Sick Leave under the CRA, running concurrently with FMLA. No other pay will be required (other than the employee’s right or employer’s mandate that available paid leave be substituted) for leave under existing FMLA provisions. The CRA’s FMLA paid leave mandate does not apply to regular FMLA leave, including for the illness of the employee or family member.

Q: What Other Leave Is Available To Sick Employees? (Updated 4/9/20)

A: Some states and local jurisdictions have passed laws or instituted Executive Orders requiring employers to provide paid leave or family leave benefits specific to COVID-19. In addition, a number of states and local jurisdictions have laws requiring employers to provide general paid sick leave, and employees would certainly be able to use such leave for a COVID-19 infection or other illnesses.  In addition, several states have implemented paid family leave benefits, which provide pay replacement benefits for unpaid leave through a state program similar to unemployment insurance. These benefits may also apply. Employees may be eligible to use employer-provided leave, vacation, or paid time off, depending on the employer’s policies.

Under the CRA, employers with fewer than 500 employees have to provide sick employees with ten days of paid sick leave, but not paid FMLA leave, for COVID-19, but not for any other illness.

If no paid leave is available, employers should make unpaid leave available to employees with COVID-19.  Employers may also want to consider, in the absence of formal paid leave policies and where economically feasible, simply to provide pay to cover the unpaid leave.  This can come in the form of continuing employees’ regular pay, allowing employees to borrow against future paid leave (where the employee has exhausted all available paid leave) and permitting employees to enter into a negative state of accrual, or partial pay. Some employers are also exploring the idea of a leave donation program, where other employees can donate extra accrued leave for use by those without any paid leave available.

Q: Are COVID-19 Illnesses Covered By Workers’ Compensation?

A: If an employee contracts the virus at work, including while teleworking, it will likely be covered by workers’ compensation.  The employer should report this to its carrier.  As a practical matter, it may likely be nearly impossible to make this determination as community spread becomes more prevalent.

Q: Is An Employee Contracting COVID-19 At Work A Reportable And/Or Recordable Event Under The Occupational Safety And Health Act (OSHA)?

A: If an employee’s COVID-19 illness is work-related (which may be hard to determine) and the employee gets medical treatment or has restricted work activity, or is out of work, the illness must be recorded on the employer’s OSHA Form 300, and a Form 301 must also be completed.

If the infection is work related, and the infected employee is hospitalized as an in-patient, the hospitalization must be reported to OSHA within 24 hours of the incident. If the infected employee is not hospitalized as an in-patient but dies from the infection, the death must be reported to OSHA if it occurred within 30 days of the work-related incident.

Q: When May A Sick Employee Who Exhibited Symptoms Return To Work? (Updated 5/7/20)

A: The employee should follow their health care provider’s instructions with regard to when they can return to work.  Although employers may require return to work clearance from a physician under the Americans with Disabilities Act and, if applicable, under the Family and Medical Leave Act (assuming that the employer has complied with the FMLA requirements as to fitness for duty certifications, discussed below), the CDC and the Equal Employment Opportunity Commission (EEOC) are both recommending that employers refrain from requiring such clearance at this time, given the expected burden on health care providers resulting from the anticipated widespread nature of the outbreak. The EEOC has suggested that a short form certification, such as an email or stamp, should be accepted. At this point, the CDC is recommending that employees not return to work until they are fever- free for at least three days without the use of fever-reducing medicines, there has been an improvement in respiratory symptoms, and at least 10 days have passed since symptoms first appeared. If testing is being used, the employee must be fever-free without the use of fever-reducing medicines, there has been an improvement in respiratory symptoms, and they have tested negative from at least two consecutive specimens collected 24 or more hours apart.  

An employer may require that an employee who has taken FMLA leave for his or her own serious health condition submit a fitness for duty certification from a health care provider before returning to work. The employee must be notified of this requirement in the Designation Notice and the employee’s job description or other written description of essential job functions should be attached for the healthcare provider’s use. Employers may require a fitness for duty certification only with regard to the particular condition that caused the employee’s need for FMLA leave.  An employer may delay the employee’s restoration to his or her position until the fitness for duty certification is submitted so long as the employer has provided written notice of the certification requirement.

Note that many state and local sick leave laws prohibit an employer from requiring a doctor’s note if the employee has been out of work for less than a certain number of days (two or three, depending on the law).

Q: When May An Employee Who Tested Positive Without Symptoms Return To Work? (Added 5/7/20)

A: According to the CDC, such employees who remain asymptomatic may stop self-isolation, and therefore return to work, when at least 10 days have passed since the date of their first positive COVID-19 diagnostic test or they have tested negative from at least two consecutive specimens collected 24 or more hours apart. For 3 days following discontinuation of isolation, these individuals should continue to limit contact (stay 6 feet away from others) and wear a face covering.

Q: What If A Temporary Staffing Agency Employee Or Contractor Tests Positive For COVID-19? (Added 4/15/20)

A: Temporary staffing agencies and contractors may notify the host employer if any assigned worker has COVID-19. The agency or contractor should disclose the name of the infected worker, as that information may be important for exposure, cleaning and mitigation purposes.

FURLOUGHS, LAYOFFS, AND CLOSURES

Q: What Are Considerations For Employers Who Need To Implement A Reduction In Force (“RIF”)? (Updated 5/7/20)

A: If employers conduct layoffs, they must ensure such selections are job-related and do not have an adverse impact on the basis of a protected characteristic, such as race, age, sex, national origin, religion, or disability.

If a covered employer closes a facility or operating unit affecting at least 50 employees or lays off more than 50 or more full-time employees at a single site of employment during any 30 day period, and those layoffs constitute a third of the workforce at that site and will last at least six months, the employer must comply with specific Worker Adjustment and Retraining Notification (WARN) Act notifications.  Covered employers must also comply with WARN Act notifications if they lay off 500 or more employees at a worksite for at least six months, regardless of whether the number of employees laid off constitutes a third of the workforce at that site. Employers with 100 or more employees, excluding part-time employees, are subject to WARN’s requirements.  Some states have “mini-WARN” Act requirements that apply to lower thresholds, as well as state, county, and local laws and ordinances that may require notices for certain workforce reductions or changes. Some states have made COVID-19-related changes to their mini-WARN Acts, however.

Employees who are laid off are not are not able to take Paid Sick Leave or expanded FMLA leave under the CRA.

Q: What Must Employers Be Mindful Of If They Furlough Employees? (Updated 4/9/20)

A: If employers furlough an exempt employee for the entire workweek, no salary is owed for that week. If an exempt employee, however, performs any work during the workweek, he or she must receive their entire salary. It is possible to reduce an exempt employee’s salary for a period of time if the employee is expected to perform less work during that period. This may be subject to state law notice requirements as to changes in pay or benefits. Because of the fraught nature of this action, employers should consult with counsel if considering this option.

Non-exempt employees must be compensated for all hours worked, whether they are in or out of the office. They need not be compensated for hours not worked.

When employees are furloughed, employers should communicate the expectation that employees will not work, including checking email and voicemail.  Work is not authorized during the furlough period absent written approval. If an employer implements furlough days, employees may be able to obtain unemployment insurance benefits for the reduction in wages.  This will vary by state. Additionally, a furlough of six months that otherwise meets WARN requirements will trigger WARN’s 60-day notice requirement.

Notably, employees on furlough are not able to take Paid Sick Leave or expanded FMLA leave under the CRA.

Q: What Notice Must Be Provided Under WARN? (Added 5/7/20)

A: Under the Worker Adjustment and Retraining Notification Act (WARN), employers must provide 60 days’ notice of any employment reductions to (1) non-Union employees affected by the employment action, (2) the state’s dislocated worker unit, (3) the chief elected official of the unit of local government in which the closing or mass layoff is to occur, and (4) representative(s) of affected employees (in the event the work force is unionized, this will be the employee’s exclusive bargaining representative).

Q: Are There Exceptions To WARN For Employment Reductions In Which 60 Days’ Notice Is Not Feasible? (Added 5/7/20)

A: Yes, but this depends on the specific circumstances of the employment action, and operates as an exception to the 60 days’ notice requirement, and not the remainder of the obligations imposed by the Worker Adjustment and Retraining Notification Act (WARN).  Employers implementing an employment action triggering WARN obligations need not give 60 days’ notice if the action is caused by an unforeseeable business circumstance, a natural disaster, or if a site of employment closes after a faltering company fails to obtain capital or business it had sought which was necessary to maintain operations.  These inquiries are very fact specific, as noted by the DOL in its Frequently Asked Questions resource on WARN and COVID-19.

Many employers may not issue WARN notices, despite meeting otherwise meeting WARN’s requirements because, under the unforeseeable business circumstances exception, the need for the layoff or shutdown was not reasonably foreseeable 60 days’ in advance due to the sudden and dramatic onset of COVID-19.  The application of any one of these exceptions, however, does not eliminate employer’s need to issue WARN notices if they otherwise meet WARN’s requirements.  Although 60 days’ notice may not have been required, employers must still send WARN notices for employment actions covered by one of WARN’s exceptions as soon as practically possible, even if they are issued after the employment action occurs.  The notice should include a brief statement of the reason for giving less than 60 days’ notice.

Q: How Do Employers Know If They Meet The Foreseeable Business Circumstances Exception? (Added 5/7/20)

A: As noted by the DOL in its Frequently Asked Questions resource on WARN and COVID-19, this is a very fact specific inquiry determined on a case-by-case basis.  The Department of Labor’s WARN regulations provide:

The “unforeseeable business circumstances” exception… applies to plant closings and mass layoffs caused by business circumstances that were not reasonably foreseeable at the time that 60-day notice would have been required.

(1) An important indicator of a business circumstance that is not reasonably foreseeable is that the circumstance is caused by some sudden, dramatic, and unexpected action or condition outside the employer’s control. A principal client’s sudden and unexpected termination of a major contract with the employer… and an unanticipated and dramatic major economic downturn might each be considered a business circumstance that is not reasonably foreseeable. A government ordered closing of an employment site that occurs without prior notice also may be an unforeseeable business circumstance.

(2) The test for determining when business circumstances are not reasonably foreseeable focuses on an employer’s business judgment. The employer must exercise such commercially reasonable business judgment as would a similarly situated employer in predicting the demands of its particular market. The employer is not required, however, to accurately predict general economic conditions that also may affect demand for its products or services.

Q: Should Employers Continue To Monitor Layoffs For Potential WARN Obligations? (Added 5/7/20)

A: Yes.  As noted by the DOL in its Frequently Asked Questions resource on WARN and COVID-19, many employers did not issue WARN notices because they did not intend layoffs to last longer than six months.  WARN provides that a layoff of more than six months that at the outset was not expected to last six months, is not subject to immediate WARN notices if: (1) the extension beyond six months is caused by business circumstances not foreseeable at the time of the initial layoff; and (2) notice is given at the time it becomes reasonably foreseeable that a layoff beyond six months will be required.  A layoff extending beyond six months for any other reason is treated as an employment loss from the date the layoff or furlough starts.  Accordingly, employers should not wait until 60 days prior to the end of the six month period to issue WARN notices.  They must continue to monitor the layoff and analyze the likelihood of whether the layoff will last beyond six months.  As soon as it becomes reasonably foreseeable that the layoff may extend beyond six months, employers should issue WARN notices as soon as possible to avoid WARN liability.

Q: Is There A Distinction Under WARN Between Laying Off Workers And Furloughing Them? (Added 5/7/20)

A: No, there is no distinction between a layoff and a furlough under WARN. 

Q: Can Employers Escape WARN’s Requirements By Making Multiple Small Layoffs? (Added 5/7/20)

A: Some employers are taking a step-by-step approach in conducting reductions in force, attempting to lay off as few workers as possible at a time.  In determining whether a plant closing or mass layoff triggers WARN notification requirements, covered employers must look forward 90 days and backwards 90 days from each employment loss.  Separate employment losses that do not otherwise meet WARN’s requirements aggregate over a 90 day period, and if the losses over those 90 days involve the requisite number of employees, WARN requirements are triggered as to all of the employees suffering an employment loss and apply as of the date of the first employment action.  Employment actions will not be aggregate if the employer is able to prove they are the result of separate and distinct causes.

Employers needing to make multiple layoffs as this crisis continues should closely track layoffs across the 90 day aggregation period and consult with counsel to determine whether WARN is triggered.

Q: May Employers Send WARN Notices By Email? (Added 5/7/20)

A: The regulations implementing the WARN Act state that: “Any reasonable method of delivery…

which is designed to ensure receipt of notice” is an acceptable form of notice. See 20 § C.F.R. 639.8. This includes e-mail. A WARN notice sent via email must still be specific to the individual employee, and comply with all requirements of the WARN Act statute and regulations regarding written notifications.

Q: What Are The Extended Deadlines For COBRA Notices? (Added 5/7/20)

A: Under normal circumstances, the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides that employees must receive notice of their right to elect continued healthcare coverage following a triggering event, such as a termination of employment or a certain reduction in hours. They then have 60 days in which to elect such coverage, and 45 days following election to pay the premium. The DOL has announced a final rule, however, that extends these deadlines beyond the “Outbreak Period,” which is defined as between March 1, 2020 and 60 days after the National Emergency has been declared at an end. Thus, the 60-day period to elect coverage will only begin at the end of this Outbreak Period. The DOL has provided additional guidance in a Q&A resource.

PLANNING FOR COVID-19

Q: For Unionized Employers, What Bargaining Obligations Exist When Developing Response Plans?

A: Employers should begin by examining their collective bargaining agreement.  The management rights clause, or provisions regarding leave, telework, and other pertinent subjects may dictate determine whether the employer may unilaterally act.  Employers may be required to provide notice and an opportunity to bargain to the Union as to any changes in leave administration.

Employers with unionized workforces have a duty to bargain in good faith regarding mandatory subjects of bargaining. Mandatory subjects of bargaining are typically summarized as employee wages, hours, and working conditions. Generally, where an employer wishes to alter a mandatory subject of bargaining, it must first notify the Union of the proposed change and, upon request, bargain with the Union over the change. Under the NLRA, this principle is applicable even where the change may be precipitated by emergency conditions.

The duty to bargain may be suspended where an employer faces a compelling economic exigency, and the exigency compels immediate action. Such events are generally defined as extraordinary, unforeseen events having a significant economic impact requiring an employer to act immediately. The NLRB assesses each assertion of “compelling economic exigency” on a case-by-case basis.

Potential bargaining issues include:

  • Paid time off for testing
  • Periodic mandatory testing
  • Payment for testing
  • Longer or additional shifts for coverage
  • Relaxing the prohibition against cross-classification work or management performance of work
  • Relaxation/modification of attendance and leave rules
  • Salary continuation for quarantine/school closures/family illness
  • Support programs for quarantined/ill employees
  • Workplace safety concerns

Employers must also be sure to comply with existing CBA provisions such as layoff and recall, shutdowns, filling vacancies, attendance and leave rules, short term disability, accommodations and return to work, and illness reporting.

When employees are furloughed, employers should communicate the expectation that employees will not work, including checking email and voicemail.  Work is not authorized during the furlough period absent written approval. If an employer implements furlough days, employees may be able to obtain unemployment insurance benefits for the reduction in wages.  This will vary by state. Additionally, a furlough of six months that otherwise meets WARN requirements will trigger WARN’s 60-day notice requirement.

Q: What Should An Employer Response Plan Contain?

A: As recommended by the CDC guidance, a thorough response plan should consider the following:

  • Identify leadership and points of contact.
  • Possible exposure and health risks should be identified and addressed.
  • Explore social distancing strategies and physical changes to the workplace to facilitate social distancing.
  • Identify essential business functions and roles and how to cover these functions when employees fall ill or are unavailable to work due to widespread school closures.
  • Inform staffing agencies that their sick employees should stay home, and they should administer non-punitive leave policies.
  • Plan communications to its workforce, clients, and vendors as necessary.
  • Institute flexible workplace and leave policies, as appropriate for the individual workplace.
  • Communicate with public health officials and community resources that can assist both the employer and its employees during this pandemic.

Q: What Should Be Contained In Written Policies Specific To COVID-19?

A: Employers should implement an illness policy informing employees whether there are restrictions on travel or other activities.  The employer’s policy should contain reporting requirements for illnesses/exposures, including to whom reporting should be made.  Dictate when employees are required to stay home due to illness or quarantine, and whether employees will be paid for absences.  Employers should set forth the benefits available to its employees, and whether return to work clearances are required.  Given the fluidity of the pandemic, make clear that the policy may be subject to revision.

Employers should implement state-mandated sick leave policies if they have not done so.  If sick leave policies are in place, they should be reviewed and modified as necessary.  The CRA will need to be addressed in sick leave policies for covered employers.  Consider whether a COVID-specific leave policy is warranted.  Additionally, if permitted by plan documents, employers should determine whether modifications to health plan eligibility because of reduced hours are warranted.

Q: What Discrimination or Harassment Concerns Should Employers Be Thinking About? (Added 4/15/20)

A: Employers should implement an illness policy informing employees whether there are restrictions on travel or other activities.  The employer’s policy should contain reporting requirements for illnesses/exposures, including to whom reporting should be made.  Dictate when employees are required to stay home due to illness or quarantine, and whether employees will be paid for absences.  Employers should set forth the benefits available to its employees, and whether return to work clearances are required.  Given the fluidity of the pandemic, make clear that the policy may be subject to revision.

Employers should implement state-mandated sick leave policies if they have not done so.  If sick leave policies are in place, they should be reviewed and modified as necessary.  The CRA will need to be addressed in sick leave policies for covered employers.  Consider whether a COVID-specific leave policy is warranted.  Additionally, if permitted by plan documents, employers should determine whether modifications to health plan eligibility because of reduced hours are warranted.

Q: What Happens If Employees Are Called Up For National Guard Duty Due To COVID-19? (Added 4/15/20)

A: As reported in the media, the National Guard has been called out to assist with certain COVID-19 related activities. The DOL’s Veterans’ Employment and Training Service offered Frequently Asked Questions regarding COVID-19-related National Guard service under the Uniformed Services Employment and Reemployment Rights Act (USERRA). VETS noted that there are no new rights and obligations under USERRA, but explained those rights and obligations in light of COVID-19.

According to VETS, USERRA’s employment and reemployment protections apply if an employee is called to National Guard duty under federal – but not state – authority. (State law protections may apply, however). The authority can change during the employee’s service.

VETS notes that an employee may still be laid off or furloughed upon return from their military (including National Guard) service if they would have been subject to that action unrelated to their service.

Employers are cautioned that they cannot delay reemployment based on a concern that the employee may have been exposed to COVID-19 during their service in a COVID-19 affected area. If the employee has been exposed to or has become infected with COVID-19, the employer must make reasonable efforts in order to qualify the returning employee for their proper reemployment position. According to VETS, these efforts can include temporarily providing paid leave, remote work, or another position during a period of quarantine. While VETS does not address whether unpaid leave would be reasonable, other agencies would apparently allow for leave that is unpaid if paid leave is otherwise unavailable.

Q: Is The Small Business Administration Offering Any Assistance To Impacted Employers?

A: The Small Business Administration is working with state governors to provide low-interest disaster recovery loans to small businesses and nonprofits that have been severely impacted by COVID-19.  These Economic Injury Disaster Loans offer up to $2 million in assistance for small business to help overcome the temporary loss of revenue they are experiencing.  These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster’s impact.  The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible.  Get the latest information by visiting the SBA’s Guidance for Business and Employers to Respond to Coronavirus, by contacting the SBA’s national disaster relief helpline by calling 1-800-659-2955 or e-mailing  disastercustomerservice@sba.gov, or by contacting your local SBA office.

The SBA also provides export loans to help small businesses achieve sales through exports and can help these businesses respond to opportunities and challenges associated with trade, including COVID-19. The loans are available to small businesses that export directly overseas, or those that export indirectly by selling to a customer that then exports their products.  For more information, please see the SBA’s Guidance linked above.

Q: In The Case Of A Furlough, Shutdown, Layoff Or Closure, When Are Employees Entitled To Unemployment Insurance? (Updated 4/9/20)

A:  Unemployment insurance benefits are controlled by state law. Generally speaking, regardless of the terminology used, employees will be eligible for UI if the employer lays them off, shuts down, or reduces their hours, whether on a temporary or permanent basis. If the government orders the business to shut down, employees will be entitled to UI.

Notably, state law will govern the interaction of paid leave (vacation, paid time off, and/or sick leave) and severance with UI benefits.

The CARES Act has significantly expanded UI benefits available to employees impacted by COVID-19. The DOL has issued guidance on such expanded benefits.

Q: What Guidance Has The Federal Government Provided On COVID-19? (Updated 5/7/20)

A: The federal government has provided the following guidance on COVID-19: