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A Potential Childcare Disruption for Rehired Employees

Client Alert
May 14, 2020

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.  

child care;FFCRAcovid-19coronavirusCARES Actchildcare leaveDOL
Client Alert

Cleveland Manufacturer Violated OFAC Sanctions By Allowing Shipments To Iran - Know Your Customer and Know Their Customer

March 30, 2021UniControl, Inc., a Cleveland, Ohio manufacturer of process controls, airflow pressure switches, boiler controls and other instruments, agreed to pay the Office of Foreign Assets Control “OFAC,” the financial enforcement agency of the U.S. Treasury Department, $216,464 to settle its liabilities for violations of the Iran Sanctions Program. OFAC stated that “this enforcement action highlights the importance of identifying and assessing multiple warning signs that indicate a foreign trade partner may be re-exporting goods to a sanctioned jurisdiction.”Client Alert

Ohio Breach of Contract Statute of Limitations Shortened to 6 Years

March 29, 2021On March 16, 2021, Governor DeWine signed into law S.B. 13 which shortens Ohio’s statute of limitations for filing lawsuits based on breach of contract. A statute of limitation is the time period within which a party must file a lawsuit before its claim expires as a matter of law.Client Alert

Chinese Product Tariff Challenge Causes Flurry of Importer Lawsuits

March 26, 2021A lawsuit filed late in 2020 at the U.S. Court of International Trade (“CIT”) challenging the U.S. Trade Representative’s (USTR) implementation of Section 301 “List 3” and “List 4” duties on products from China, HMTX Industries LLC et al. v. United States (Court No. 20-00177), has resulted in the filing of thousands of additional lawsuits brought by other affected importers. There are now 3,700+ companies added to the list, including Ford, Home Depot, Target, Tesla, and Walgreens, along with many other smaller importers.Client Alert

America’s New COVID-19 Relief Package — Unpacked

March 23, 2021On March 11, 2021, President Biden signed the highly anticipated American Rescue Plan Act (the “Act”) into law, a $1.9 trillion COVID-19 relief bill aimed at addressing and resolving many of the lingering questions and concerns following the expiration of the Families First Coronavirus Response Act (“FFCRA”) on December 31, 2020.Client Alert

Vaccinating Against Design and Construction Risk: A COGENCE Alliance Momentum Recap

March 18, 2021Last month, COGENCE Alliance hosted a four-day conference, attended by owners, affiliates, construction managers, trades, engineers, and architects. David Scott presented and other BMD team members hosted breakout discussions on how to “vaccinate against design and construction risk.” Groups discussed new and developing risks, how to mitigate those risks, and qualities of those who best adjusted to the new and developing risks.
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