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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.  


Supreme Court Backs HHS in DSH Payment Battle

DSH payments are statutorily required payments intended to offset hospitals’ uncompensated care costs to improve patient access to Medicare and Medicaid. The payments also serve to help the financial stability of safety-net hospitals that oftentimes treat uninsured or underinsured patients. The U.S. Department of Health and Human Services’ (HHS) specifically makes DSH payments to hospitals that serve a high number of low-income patients. The Medicare DSH adjustment is calculated based on two factors: the hospital’s Medicare patients with low incomes and those with low incomes, but not on Medicare.

Sweeping Changes Proposed for Federal Title IX Legislation

Monica B. Andress and Krista D. Warren

The Latest CMS Guidance: HIPAA Edition

Metaverse in the Workplace: What Do Employers Need to Know?

Emerging technologies are creating a host of new legal issues for employers. The rise of the metaverse has been one of the most anticipated expansions over the last few years. The metaverse is a virtual world that allows users to interact with each other in simulated environments. The metaverse in the workplace has been expanding rapidly as businesses explore the use of virtual reality and augmented reality to improve workflows and communication.

A Win for the Hospitals: An Update on the Latest 340B Lawsuit

On Wednesday, the Supreme Court unanimously rejected massive payment cuts to hospitals under the 340B drug discount program. Now, the Department of Health and Human Services no longer has the discretion to change 340B reimbursement rates without gathering data on what hospitals actually pay for outpatient drugs. This “straightforward” ruling was based on the text and structure of the statute, per the Supreme Court. Simply put, because HHS did not conduct a survey of hospitals’ acquisition costs, HHS acted unlawfully by reducing the reimbursement rates for 340B hospitals.