Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
COVID-19 and the Workplace How to Comply with Rapidly Changing Legislation April 2020
Presentedby:JaimeLizo3e,Tax&HRComplianceSolu@onsManager
Today’s Agenda
§ Reviewemployer-relatedprovisionsoftheFamiliesFirstCoronavirusResponseAct(FFCRA)§ Reviewemployer-relatedprovisionsoftheCoronavirusAid,ReliefandEconomicSecurity(CARES)Act§ Bestprac@ceswhenconsideringareduc@oninforce(RIF)§ Tipsfromourlegalteamformanagingtemporaryremoteworkers§ Whyandhowtocomplywithmandatoryemployeepos@ngregula@onsduringthis@me
Understanding the Families First Coronavirus Response
Act (FFCRA)
Introducing the FFCRA § SignedintolawMarch18;effec@veApril1§ Temporarymeasure—expiresDecember31,2020§ Extensivelegisla@oncoveringmanyaspectsoffederalCOVID-19response
§ Twokeypartsaffec@ngemployers:§ EmergencyPaidSickLeaveAct§ EmergencyFamilyandMedicalLeaveExpansionAct
§ Bo#omline:Certainemployersmustprovideemployeeswithpaidleaveforspecific,COVID-19reasons
Which Employers Are Affected? § Privateemployerswith<500employees
§ Employerswith<50employeesmayqualifyforexemp@on
§ Ifseekingexemp@on,documenthowcomplyingwiththelawwould“jeopardizetheviability”ofthebusiness
§ Lawmakesexcep@onforcertainhealthcareworkersandemergencyresponders(butthisisbeingchallenged)
§ Almostallpublicemployers
Which Employees Qualify? Employeeswhocannotwork(evenremotely)becausethey:§ AreexperiencingCOVID-19symptomsandseekingdiagnosis§ Havebeenadvisedbyhealthcareprovidertoself-quaran@neduetoCOVID-19§ Aresubjecttomandatoryfederal,stateorlocalgovernmentquaran@neorderrelatedtoCOVID-19§ Areexperiencinganyother“substan@allysimilarcondi@on”toCOVID-19(perSecretaryofHealthandHumanServices)
Which Employees Qualify? (cont.)
Employeeswhocannotwork(evenremotely)becausethey:§ Arecaringforanindividualwhoissubjecttoamandatorygovernmentquaran@neorderorwasadvisedbyhealthcareprovidertoself-quaran@ne
§ ArecaringfortheirchildwhoseschoolisclosedbecauseoftheCOVID-19emergency
§ ArecaringfortheirchildwhoseusualcaregiverisunavailablebecauseoftheCOVID-19emergency
FFCRA vs. FMLA § FFCRAispaidleavevs.unpaidleaveforFMLA§ FFCRAgenerallyhasnorequirementsforlengthofserviceorhoursworked
…withoneexcep-on§ FFCRAtakesprecedenceforspecificCOVID-relatedsitua@onoutlinedinthelaw§ Otherwise,unpaidleaveunderFMLAappliesforotherfamily&medicalleave
Amount of Paid Leave Varies Scenario1:Employeeisquaran@nedbygovernmentorderoradviceofhealthcareprovider,and/orisexperiencingCOVID-19symptomsandseekingdiagnosis
§ Uptotwoweeks(or80hours)ofpaidleaveatemployee’sregularpayrate
§ Cappedat$511/dayand$5,110total
Amount of Paid Leave Varies Scenario2:Employeeiscaringforanindividualsubjecttoquaran@neORexperiencingasubstan@allysimilarcondi@on
§ Uptotwoweeks(or80hours)ofpaidleaveattwo-thirdsofemployee’sregularpayrate
§ Cappedat$200/dayand$2,000total
Amount of Paid Leave Varies Scenario3:EmployeeiscaringforachildwhoseschoolisclosedorchildcareproviderisunavailableduetoCOVID-19
§ Uptotwoweeks(or80hours)ofpaidleaveattwo-thirdsofemployee’sregularpayrate
§ AND,ifemployed30+dayspriortoleave,upto10addi@onalweeksofpaidleaveatsamerate
§ Cappedat$200/dayand$12,000total
Important:EmergencypaidleaveunderFFCRAisinaddi-ontoanyexis@ngsickleaveand/orpaid@meoffalreadyofferedbyemployer.
Relief for Employers § EmployersarenotexpectedtocoverthecostofemergencypaidleaveunderFFCRA
§ Federalgovernmentwillreimbursethecostofqualified,COVID-relatedleave
§ Financialreliefwillcomeastaxcredits§ Keepproperdocumenta@ontoproveleavemeetsFFCRAcriteria
§ Consultataxadvisor
Recommended Documentation § Keepproperdocumenta@onforCOVID-relatedleave
§ Usewri3enleaverequestform§ Documenta@onshouldinclude:
§ Employee’sname§ Qualifyingreasonforreques@ngCOVID-relatedleave§ Date(s)forwhichleaveisrequested§ Ifduetoquaran@ne,includedetailsaboutquaran@neorderfromgovernmentagencyorhealthcareprovider
§ Ifduetochildcare,includedetailsaboutschoolordaycareclosure
Understanding the Coronavirus Aid, Relief and Economic
Security Act (CARES Act)
Introducing the CARES Act § SignedintolawMarch27§ $2trillion+s@muluspackagetoreduceeconomicimpactofCOVID-19
§ Goalistomaintainincomeforworkersthrough:§ Businessloans(tomaintainpayroll&benefits)§ Directfinancialassistancetoworkerswholosetheirjobs
Paycheck Protection Loans
§ Smallemployers(generallyupto500employees)§ Incen@vetokeepemployeesonpayroll§ Maxloanamount=averagemonthlypayrollduringprioryearX2.5(maxof$10million)§ 2-yearterm@1%;paymentsdeferred6months§ Canbeusedforpayroll,healthcarebenefits,rent,mortgageinterest,u@li@esandotheressen@alexpenses§ NOTtobeusedforFFCRApaidleave
Paycheck Protection Loans (cont.) § AvailablethroughSBA-approvedlendersun@lJune30§ Standardfeeswaived§ Noguaranteerequiredfromborrower§ Par-allyorfullyforgivableundercertaincondi-ons
§ Proceedsusedforqualifiedexpenses§ Atleast75%spentonpayroll§ Allemployeeskeptonfullpayrollforeightweeks
Loans for Larger Businesses
§ Businesseswith500-10,000employees§ Mustrestoreatleast90%ofemployeeswithin4monthsauer‘end’offederalCOVID-19emergency§ Nooutsourcingofjobsduringloantermandfortwoyearsauerloanrepayment§ Addi@onalrequirementsrelatedtounionac@vity
Employee Retention Tax Credit
§ ForemployersaffectedbyCOVID-19dueto:§ Suspensionofopera@onsunderCOVID-19shutdownorder§ Revenuedeclineof50%ormorecomparedtosamequarterinpreviousyear
§ Taxcreditagainstwagespaidfrom3/13/20-12/31/20§ 50%ofqualifiedwages,includinghealthcarecoverage,upto$5,000peremployee§ NotavailabletoemployersreceivingPaycheckProtec@onloansorgovernmentemployers
Extension of Payroll Tax Deadline
§ Tohelpwithcashflow
§ Employerpor@onof2020SocialSecuritytaxescanbedeferred§ Halftobepaidby12/31/21§ Remaindertobepaidby12/31/22
Assistance for Displaced Workers
§ Expandsandsupplementsstateunemploymentbenefits§ Adds$600perweektostatebenefits
§ Mustfirstqualifyforstatebenefit§ Extendseligibilityforupto13addi@onalweeks
§ ThroughJuly31§ Expandscoveragetoindependentcontractors,gigworkers&self-employed§ Mustbe“forcedtosuspendopera@ons”
Additional Benefits for Workers
§ Penalty-freere@rementaccountwithdrawals§ Upto$100,000from401(k)/definedcontribu@onplan§ No10%penalty,butincometaxwills@llbeowed§ Canreplaceamountwithdrawnovernextthreeyears(notsubjecttoannualcontribu@onlimits)
§ AvailableonlytoemployeesdirectlyaffectedbyCOVID-19:§ Employee,spouseordependentdiagnosedw/COVID-19§ Employeeexperiences‘adversefinancialconsequences’
Additional Benefits for Workers
§ Maximumre@rementaccountloanamountsdoubled§ Canborrowupto$100,000from401(k)orotherdefinedcontribu@onplan(oruptofullbalanceifbelow100k)
§ Samerequirementsaspenalty-free401(k)withdrawal:§ EmployeediagnosedwithCOVID-19§ Employee’sspouseordependentdiagnosedwithCOVID-19§ Employeesuffered‘adversefinancialconsequences’duetoCOVID-19
Best Practices when Considering a Reduction in Force (RIF)
Crunch the Numbers § Es@mateimpactonrevenueovernext6-12months§ Tightenupnon-payrollexpensesfirst§ Assesspayrollexpenselast§ Weighallop@onsunderFFCRAandCARESAct§ Consideralterna@vestoinvoluntarylayoffs
§ Reducedhours/salaries§ Temporaryfurloughs/leavesofabsence§ Voluntaryleaves/layoffs
Use Objective Criteria § Whichfunc-onsareessen@altomaintainopera@ons?§ Howmanyareneededtoperformeachfunc@on?
§ Minimize‘rounds’ofcuts
§ Whatobjec-vecriteriacanbeusedforselec@on?§ Tenure§ Seniority§ Produc@vity§ Workercategory§ Specificskillsets/knowledge
§ Consideradverseimpactonprotectedclassesunderfederallaws…§ Race,color,ethnicity,na@onalorigin,religion,gender,age(40orover),disability,veteranstatus,gene@cinforma@on
§ …andstateandlocallaws§ Sexualorienta@on,maritalstatus,smokers,etc.
Avoid Potential Discrimination
Pointer:Whenallelseisequal,”lasthired”isouenthefairestapproachforindividualsinsimilarposi@ons.
Consider Employee Notification Laws § FederalWorkerAdjustmentRetrainingandNo@fica@onAct(WARNAct)§ Employerswith100+full-@meemployeesmustgive60days’wri3enno@ceofplantclosingormasslayoff
§ Typicallydoesn’tapplytotemporaryclosings/layoffs(<6months)§ Excep@onsfornaturaldisastersor’unforeseeablebusinesscircumstances’
§ S@llmustprovideno@ceassoonasprac@cable,withexplana@onforreducedno@ceperiod(e.g.,pandemic)
Consider Employee Notification Laws
§ Alsocheckstatelaws§ Somestateshaveseparatelegalrequirementsrelatedtomasslayoffsandplantclosings
§ Somerequirementsmayapplytocurrentsitua@on§ Addi@onalno@cesarerequiredforindividuallayoffs/termina@onsunderstateandlocallaws
Determine Severance Benefits
§ Notrequiredbyfederallaw,butoueninclude:§ Severancepay(typicallyvariesbylengthofservice)§ Employer-paidbenefitsandCOBRApremiums§ Le3ersofrecommenda@on§ Outplacementservices§ Accesstointernaljobpos@ngs§ Waiverofnon-competerestric@ons§ Otheremployeeassistanceprograms
Pointer:Haveemployeessignaseveranceagreementreleasingemployerfromliabilityandprotec@ngagainstlegalclaims.Note:ConsultanaForneytoensureagreementcomplieswithallfederal,stateandlocallaws.
Communicate Decisions Clearly § Prepareascript§ Keeptothepointandbeconsistent§ Beclearonwhetherthelayoffistemporaryorpermanent§ Explainfinalpaychecks§ Providewri3endetailsregardingseverancebenefits,healthinsurancecon@nua@onop@onsandoutplacementservices
§ Describehowrecalls/rehireswillbehandled§ Temporary:Willjobbeheldorwillitdependonbusinessneed?§ Permanent:Willtheybeconsideredaheadofnewapplicants?
Compliance Tips for Managing Remote Workers
Update Remote Work Policies
§ Cri@calpoliciesinclude:§ Employercontrolofremoteworkdecisions§ Useofcompanyequipment§ Workschedules&expectedavailability§ Over@merestric@onsandapprovalprocesses§ Datasecurityandconfiden@ality
§ Remindemployeesthatallcurrentpoliciess@llapply
Establish Clear Boundaries for Non-Exempt Employees
§ Beclearaboutexpectedworkhours§ Canvarybyrole/department§ Canallowsomeflexibilitybasedonrole
§ Useelectronicsystemforclockingin/out,ifpossible§ Otherwise,requireweekly@mesheets
§ Emphasizethat‘offtheclock’workisstrictlyprohibited
Watch How You Manage Exempt Employees
§ Donottrackworkhoursforpaypurposes§ Donotestablishafixedworkschedule(unlessnecessitatedbyrole)
§ Youcansetexpecta@onsforwhenexemptemployeesmustbeavailableformee@ngsandcollabora@on
§ Otherwise,managetogoalsanddeliverables,nothoursworked
Provide Access to Mandatory Postings and Notifications
§ Communica@ngemployeerightsismoreimportantthanever§ Newlawsexpandemployeerights–federal,state,local§ Newlawsmeannewpos@ngsrequirements§ Employeeli@ga@onriskexpectedtoincreaseduetohard@mes&increasinglegalcomplexity
§ Pos@ngrequirementsapplytoremoteworkers(canbeelectronic)§ Mandatoryemployeehandoutsarealsochanging
§ Ouentriggeredbyleaverequestsandunemploymentclaims
New & Updated Solutions to Address COVID-19
§ MandatoryFFCRAPoster—laminated,bilingual§ FFCRAComplianceEssen@als§ IntranetLicensingServiceforElectronicPosters(6or12months)§ SmartApps–CompanyPolicies§ MandatoryEmployeeHandoutService
Learnmoreat:HRdirect.com/COVID-19
Questions
Reminder:AllaFendeeswillreceivealinktothepresenta-onandslidesinafollow-upemail.