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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.  


Is Your Bonus System Creating Wage and Hour Violations? A Hidden Impact of the Labor Shortages

As employers struggle with attracting and retaining talent, many have turned to incentives such as Signing Bonuses and Retention Bonuses. In doing so, employers may be inadvertently exposing themselves to overtime law violations. Employers with non-exempt employees know that the Fair Labor Standards Act (FLSA) requires an overtime premium to non-exempt for work in excess of 40 hours per week. However, all too often, employers miscalculate the “regular rate” of pay, which is used for calculating the “overtime rate.” The miscalculation is becoming more prevalent in today’s market when employers fail to include supplemental compensation, such as certain Signing Bonuses and Retention Bonuses into the regular rate of pay. An example: A non-exempt employee is hired at a rate of $20 per hour, and also receives a retention bonus of $1,200 after working for 12 weeks. In her 11th week of work, employee works 50 hours. In her 14th week of work, employee works 50 hours. What is her paycheck in week 11? What is her paycheck in week 14?

No Surprises Act – Notice Requirements

On July 1, 2021, the Biden Administration passed an interim final rule: Part 1 of the “Requirements Related to Surprise Billing Act,” in an attempt to curb excessive costs patients are required to pay in relation to surprise billing. The rule is set to take affect January 1, 2022, and will only affect those who are enrolled in insurance via their employers, as federal healthcare programs already prohibit this type of billing.[1]

El Contrato Escrito: La Herramienta Predilecta

No existe mejor herramienta a una disputa contractual que un documento firmado por las partes en el cual se expongan las obligaciones y acuerdos entre éstas.

New State Budget Institutes Licensure Requirement for Ohio’s Hospitals

On July 1, 2021, Governor Mike DeWine signed Ohio’s final budget codified at Ohio Revised Code 3722.01 et seq., which includes a new licensing requirement for Ohio’s hospitals. For years, Ohio was the only state in the country that did not license its hospitals. This approach will now be replaced with new, detailed requirements that will require careful review and compliance. Here are some of the highlights concerning these new changes:

Healthcare Provisions in the Ohio FY 22-23 Budget

Governor Mike DeWine signed Ohio’s Fiscal Year 2022-2023 budget bill (HB 110) into law on July 1, 2021. At almost 1,000 pages and 74.1 billion dollars, the budget lays out the State’s spending for the next two years. Below are a few highlighted provisions from the budget that will be important for the healthcare industry in Ohio