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A Potential Childcare Disruption for Rehired Employees

Client Alert

As businesses reopen, employers with fewer than 500 employees need to brush up on the FFCRA Paid Leave rules, including a potential disruption to your return to operations. 

Under the FFCRA, employees may be eligible for up to 80 hours of Emergency Paid Sick Leave, and up to 12 weeks of paid Emergency Childcare Leave. The eligibility and use of Childcare Leave have presented the most questions. Check out Bryan Meek’s article about summer vacations

Under the FFCRA and the Department of Labor guidance, employees would be eligible for Childcare Leave only if the employer had them on its payroll for at least 30 calendar days immediately prior to the day leave would begin. 

Many of the reinstated employees have been on unemployment, rather than the employer’s payroll for the past month or so.  

Does this mean the rehired employees are not eligible for Childcare Leave until they work for at least a month? Not necessarily

Why? Under the CARES Act, Congress added a loophole for rehired employees. If an employee was laid off on or after March 1, 2020 and is then rehired, the employee is immediately eligible for Childcare Leave if the employee worked 30 of the last 60 calendar days prior to layoff. 

What is the concern? An employee can return to work as part of a rehire program for one day, and then go on 12 weeks of a combination of Emergency Sick Leave and Emergency Childcare Leave paid at a 2/3 rate up to $200 per day. 

What should employers do? The Childcare Leave process is designed to be interactive. Engage in an interactive process with your employees about their scheduling and childcare needs. You can remind employees that the childcare disruptions will likely extend into the next school year, so it’s wise to conserve the leave for when it is absolutely necessary. 

For additional questions, please contact Jeffrey Miller 216.658.2323 or any member of the Labor + Employment Team of BMD.  


Client Alert: AAA Introduces AI-Assisted Arbitrator for Certain Disputes

The American Arbitration Association has introduced an AI-assisted arbitration platform designed to streamline certain document-based disputes. While a human arbitrator still makes the final decision, the technology can improve efficiency, reduce costs, and accelerate case resolution. Companies should weigh these benefits against considerations such as transparency, risk, and contractual requirements before adopting AI-assisted arbitration.

Quiet Hours Texts and TCPA Claims: Consent Remains King as Courts Divide on Text Messages

Businesses face increasing TCPA lawsuits over off-hours marketing texts, but recent court decisions highlight strong defenses. Clear consumer consent and updated terms and conditions can defeat many claims, while a growing number of courts are finding that text messages are not “telephone calls” under the statute. Proactive compliance measures, including clickwrap agreements and forum-selection clauses, are critical to reducing risk.

New Ohio Reporting Requirements for Non-Residential Contractors

Ohio’s E-Verify Workforce Integrity Act, effective March 19, 2026, requires all nonresidential construction companies, subcontractors, and labor brokers to use E-Verify to confirm employee work eligibility on projects across the state. The law applies regardless of company size and carries financial penalties and potential restrictions on future state contracts for noncompliance. Some uncertainty remains around requirements for existing employees, making early compliance planning important.

DOT Non-Domiciled CDL Rule

A new rule from the Federal Motor Carrier Safety Administration (FMCSA) will significantly narrow eligibility for non-domiciled Commercial Driver’s Licenses (CDLs) beginning March 16, 2026. The rule limits eligibility to holders of H-2A, H-2B, and E-2 visas and eliminates Employment Authorization Documents (EADs) as qualifying proof of work authorization. As a result, many lawfully present and work-authorized immigrants, including refugees, asylees, DACA recipients, and Temporary Protected Status holders, will no longer be able to obtain or renew a non-domiciled CDL. The change is expected to affect roughly 194,000 drivers nationwide and has prompted multiple legal challenges, including a pending emergency stay request before the United States Court of Appeals for the District of Columbia Circuit.

FinCEN Residential Real Estate Reporting Rule Now in Effect

FinCEN’s new Residential Real Estate Reporting Rule, effective March 1, 2026, requires certain real estate transfers to be reported to combat financial crimes. Transfers of residential property to entities or trusts without financing may require a Real Estate Report.