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Paid Leave for Coronavirus: Department of Labor Issues Its Temporary FFCRA Rule

Client Alert

The Department of Labor issued its Temporary Rules under the Families First Coronavirus Response Act (FFCRA) pertaining to the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA). The rule became operational on April 1, 2020 and was officially published on April 6, 2020. 

Reasons for Leave - BUT FOR CAUSE. The coronavirus-related reason must be the "but for" cause of the need for leave. If employees would be unable to work even in the absence of the qualifying reason, they are not entitled to paid sick or family leave under FFCRA. This confirms our guidance that, if the workplace is closed, the employee is not entitled to paid leave. An employee is not entitled to paid sick or family leave if the employer does not have work for them to perform. The new rule also provided additional information related to each qualifying reason for leave.    

Reason 1 – Leave Due to Quarantine or Isolation Order – Quarantine or isolation orders do include a broad range of governmental orders, including orders that advise some or all citizens to shelter in place, stay at home, quarantine, or otherwise restrict their own mobility. 

Reason 2 Leave Based on Medical Advice to Self-Quarantine – The advice to self-quarantine must be based on the health care provider’s belief that the employee has or may have coronavirus or is particularly vulnerable to it. 

Reason 3 Leave Due to Symptoms and Seeking Diagnosis - Must be limited to the time the employee is unable to work because she or he is taking affirmative steps to obtain a medical diagnosis, for example, time spent making, waiting for, or attending an appointment for a test for coronavirus. 

Reason 4 Leave Based on Caring for Another Affected by Coronavirus - The individual being cared for must be an immediate family member, roommate, or a similar person with whom the employee has a relationship that creates an expectation that the employee would care for the person if she or he self-quarantined or was quarantined. 

Reason 5 Leave Based on Childcare Needs - An employee may take paid sick leave to care for his or her child only when the employee needs to, and actually is, caring for his or her child. Generally, an employee does not need to take such leave if another suitable individual—such as a co-parent, co-guardian, or the usual childcare provider—is available to provide the care the employee’s child needs. 

Reason 6 – Leave Due to a Substantially Similar Condition - The Department of Health and Human Services has not yet specified any conditions "substantially similar" to coronavirus, so there is no recognized basis for leave under this category at this time.  

Documentation of Leave - Employers should obtain a signed statement containing the following information: (1) the employee’s name, (2) the dates for which leave is requested, (3) the coronavirus- qualifying reason for leave, and (4) a statement representing that the employee is unable to work or telework because of the coronavirus-qualifying reason. Employers should also document verbal statements from employees related to the need for leave. The IRS has also issued separate requirements related to employers obtaining the tax credits for paid sick and family leave payments.  For more detailed information see Bryan Meek's article here: https://www.bmdllc.com/resources/blog/record-keeping-requirements-to-receive-ffcra-irs-tax-credit/  

EFMLEA 30 Days of Employment Requirement – EFMLEA requires that employees be employed for 30 calendar days to be eligible for the childcare leave available under the expansion of FMLA. The rule clarifies that this includes employees who were laid off or otherwise terminated on or after March 1, 2020, had worked for the employer for at least thirty of the prior 60 calendar days, and were  subsequently rehired or otherwise reemployed by the same employer. 

Definition of Son or Daughter - Son or daughter, for purposes of the childcare leave provisions, should be understood in the same manner as the FMLA.  It includes children under age 18 and children of any age incapable of selfcare because of mental or physical disability. 

Definition of Childcare Provider - Although the definition in the act refers to providers who are compensated and licensed, the eligible child care provider need not be compensated or licensed if she or he is a family member or friend, such as a neighbor, who regularly cares for the employee's child. 

Viability Exemption for Small Employers - The viability exemption relates only to childcare leave under FFCRA, and not the five other reasons for paid sick or family leave available under FFCRA. The exemption is available to employers with fewer than 50 employees, in the following circumstances: 

  • such leave would cause the small employer’s expenses and financial obligations to exceed available business revenue and cause the small employer to cease operating at a minimal capacity;
  • the absence of the employee or employees requesting such leave would pose a substantial risk to the financial health or operational capacity of the small employer because of their specialized skills, knowledge of the business, or responsibilities; or
  • the small employer cannot find enough other workers who are able, willing, and qualified, and who will be available at the time and place needed, to perform the labor or services the employee or employees requesting leave provide, and these labor or services are needed for the small employer to operate at a minimal capacity. 

Health Care Provider and Emergency Responder Exemption - This exemption is at the election of the employer (an employer could choose to provide paid leave consistent with FFCRA and still receive tax credits, even if eligible for exemption), and it should be exercised "judiciously."  

The definition of healthcare provider is broader than the usual FMLA definition. It includes any individual who is capable of providing health care services necessary to combat coronavirus - which means workers who are needed to keep hospitals and similar health care facilities well supplied and operational and workers who are involved in research, development, and production of equipment, drugs, vaccines, and other items needed to combat coronavirus.  

The definition of emergency responder includes employees, anyone necessary for the provision of transport, care, healthcare, comfort and nutrition of patients, or others needed for the response to coronavirus. The new rule also allows for the highest official of a state or territory to identify other categories of emergency responders, as necessary. 

Intermittent Leave – The right to intermittent leave for coronavirus reasons is limited, so as to be consistent with the law’s objective of slowing the spread of coronavirus. As a threshold matter, intermittent leave is only available to employees if the employer and employee can come to an agreement about it. There must be a clear and mutual understanding of the parameters of any intermittent leave. Further, if the employee is still reporting to the worksite (as opposed to teleworking), they may only take intermittently leave for the purpose of childcare. They are prohibited from taking leave intermittently for reasons 1, 2, 3, 4, and 6 when reporting to the worksite due to the risk of spreading coronavirus to other employees at the worksite.   

EFMLA Cause of Action for Interference/Discrimination - An employee’s private right of action under the FMLA to file a lawsuit directly against an employer for violation of EFMLEA does not extend to employers who were not previously covered by the FMLA (in other words, employers who do not meet the threshold of 50 or more employees within a 75 mile radius).  

FLSA Telework Guidance - Employees must be compensated for all hours actually worked, including overtime, when teleworking for reasons related to coronavirus. An employee must record and report hours worked, and an employer is not required to pay for unreported hours while teleworking unless it knew or should have known about such telework. In addition, the DOL explained that its continuous workday guidance is inconsistent with FFCRA and the CARES Act with respect to teleworking employees.  In other words, employers providing telework flexibility related to coronavirus need not count as hours worked all time between the first and last principal activity performed by the employee in a day.  

For more information, please contact Russell T. Rendall at 216.658.2205 or rtrendall@bmdll.com.

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Vacating, Modifying or Correcting an Arbitration Award Under R.C. 2711.13: Three-Month Limitation Maximum; Not Guaranteed Amount of Time

In a recent decision, the Supreme Court of Ohio held that neither R.C. 2711.09 nor R.C. 2711.13 requires a court to wait three months after an arbitration award is issued before confirming the award. R.C. 2711.13 provides that “after an award in an arbitration proceeding is made, any party to the arbitration may file a motion in the court of common pleas for an order vacating, modifying, or correcting the award.” Any such motion to vacate, modify, or correct an award “must be served upon the adverse party or his attorney within three months after the award is delivered to the parties in interest.” In BST Ohio Corporation et al. v. Wolgang, the Court held the three-month period set forth in R.C. 2711.13 is not a guaranteed time period in which to file a motion to vacate, modify, or correct an arbitration award. 2021-Ohio-1785.

EEOC Provides Updated Guidance Regarding Employer COVID-19 Vaccine Policies

On May 28, 2021, the U.S. Equal Employment Opportunity Commission updated its guidance regarding employer COVID-19 vaccination policies. The new guidance provides much-needed clarification of expectations for employers seeking to promote workplace safety and prevent the spread of COVID-19, including discussion of mandatory vaccination policies, voluntary vaccination incentives, and accommodation of employees based on disability or sincerely held religious beliefs. The full text of the update is found in Section K of the EEOC’s COVID Q&A document. You can also learn more about these and other developments from BMD's Bryan Meek and Monica Andress through the Employment Law After Hours YouTube channel, available here.

What Telemedical Barriers Practices Face and How They Can Manage Them

The onset of the COVID-19 pandemic has led to many businesses and industries having to rapidly adapt new practices in order to stay profitable, and the healthcare industry is no exception. Although telehealth tools and practices have existed and been used since the Vietnam War, the pandemic has caused many individual healthcare practices to heavily rely on telehealth as a large portion of their service mix in order to continue to provide care for patients. Because of this rapid adoption of telehealth practices in order to combat the restrictions of COVID-19, the telemedicine industry’s revenue has exploded in the last year. Experts predict that telehealth will continue to grow in use beyond the current pandemic, estimating the industry’s worth to be $25 billion by 2025. However, this rapid adoption of telehealth was prompted out of need and has not been without its own barriers that practices now face.

Which Entity Should I Form When Starting a New Business?

As a tax law attorney, friends and acquaintances ask me this question all the time: what type of entity should I form when starting a new business? With many business options available it can be confusing determining which business structure would be appropriate. Below is a general overview of each business structure and the tax responsibilities of each.

IMPORTANT UPDATE: IRS Opens Portals for Advanced Child Tax Credit Payments 2021

The American Rescue Plan Act (the “Act”) expands the Child Tax Credit for tax year 2021. In addition to expanding the Child Tax Credit, the Act provides for advance payments of the 2021 Child Tax Credit. Beginning in July, the IRS will automatically send Advanced Child Tax Credit payments to eligible taxpayers based on their 2020 tax return (or 2019 tax return if the 2020 tax return has not been filed and processed yet). The amount of the advanced payment will be up to $300 each month for each qualifying child under 6 years old at the end of 2021 and $250 each month for each qualifying child between 6 and 17 years old at the end of 2021. For example, if you have 2 qualifying children, one 4 years old and one 8 years old, you may receive up to $550 each month in advance child tax credit payments.