California’s COVID-19 Sick Leave: Expanded and Articulated (US)

AB 1867 was signed into law by Governor Newsom on September 9, 2020. The purpose of the bill is to eliminate gaps in coverage so that many more employee have access to paid sick days if they are exposed to or test positive for COVID-19 in 2020. This means that the new law applies to individuals employed at companies too big to qualify under the Families First Coronavirus Relief Act (“FFCRA”) passed by Congress in March and it also applies to individuals who may have been designated as essential, such as health care workers, and therefore exempt under the FFCRA. Employers who took advantage of designating some employees as exempt under the FFCRA may want to revisit that choice because, unlike FFCRA leaves, AB 1867 does not include a tax credit to offset the cost of providing the leave.

Who Is Entitled to Leave?

Beginning September 19, 2020, private employers with 500 or more employees nationwide (as well as certain health care providers and emergency responders), must provide employees supplemental paid sick leave if they are unable to work because:

  • They are subject to a federal, state, or local quarantine or isolation order related to COVID-19;
  • They were advised by health care provider to self-quarantine or self-isolate due to concerns related to COVID-19; or
  • Their employer prohibits them from working due to health concerns related to the potential transmission of COVID-19.

The law only applies to employees who must leave their home for work. Continue Reading

Department of Labor Issues Updated Families First Coronavirus Response Act Regulations, But Does Little To Resolve Employer Uncertainty (US)

The Families First Coronavirus Response Act (FFCRA) was enacted on March 18, 2020. The sweeping federal legislation provides emergency paid sick leave (EPSL) and expanded paid Family and Medical Leave (EFML) to certain covered workers impacted by the COVID-19 pandemic. On April 1, 2020, the U.S. Department of Labor (DOL) issued regulations implementing the FFCRA and answering, at least in part, some questions related to coverage, eligibility, use, and job restoration. We first reported on those regulations when they were issued, and prepared a five-part summary of the FFCRA and the DOL’s regulations soon thereafter.

Judicial Challenge to the DOL’s Regulations

Within days after the DOL promulgated its regulations, the State of New York filed suit challenging the validity of certain portions of the DOL’s regulations. On August 3, 2020, Judge J. Paul Oetken—a federal district court judge for the Southern District of New York—struck down portions of the DOL’s regulations as exceeding the scope of the agency’s authority. Among other findings, Judge Oetken invalidated regulations arbitrarily limiting the intermittent use of FFCRA leave; ruled overbroad the DOL’s definition of “health care providers” who may be exempted from leave entitlement; and decried the DOL’s application of the so-called “work availability” requirement, whereby only employees whose employers have work for them to do are eligible to utilize EPSL or EFML for a covered reason. Judge Oetken was unreserved in his criticism, noting that, although “[t]his extraordinary crisis has required public and private entities alike to act decisively and swiftly in the fact of massive uncertainty, and often with grave consequence,” the crisis “also calls for renewed attention to the guardrails of our government. Here, DOL jumped the rail.” The order left many employers uncertain as whether the regulations remained in effect at all, or if so, in what jurisdictions. Continue Reading

EEOC Provides Welcome COVID-19-Related Guidance To Employers As Employees Return To The Workplace (US)

On September 8, 2020, the U.S. Equal Employment Opportunity Commission (EEOC) issued updated guidance concerning COVID-19 and the workplace. The update provides much-needed answers to questions that have been troubling employers struggling to adapt to circumstances presented by the still-ongoing public health emergency.

Can we test employees for COVID-19 prior to allowing them back in the workplace?

The Americans with Disabilities Act (ADA) generally prohibits employers from requiring employees to submit to medical examinations or testing. An exception exists, however, when that testing is “job related and consistent with business necessity.” The EEOC’s updated guidance explains that as long as the testing is consistent with current guidance from the Centers for Disease Control and Prevention (CDC), employers can administer COVID-19 testing to employees prior to initially allowing them back into workplace. Employers also may periodically test employees who have returned to work to confirm that they do not have the virus and thereby present a direct threat to others. The EEOC’s updated guidance confirms that testing under these circumstances – again, so long as the testing is compliant with current CDC guidance – will meet the “business necessity” standard under the ADA. Continue Reading

All zeros and ones – EAT sums up burden of proof for disciplinary decisions (UK)

Back in March we posted here a piece about dismissing to protect the employer’s corporate reputation. In that case the employer made a very difficult choice between the claimed (ultimately, actual) innocence of the employee and the harm which continuing to employ him might do if he turned out to be guilty. On the facts, the dismissal was found fair, but as if to reinforce that dismissing to protect corporate reputation is always a risky business, here is another example from earlier this month with the opposite conclusion. Continue Reading

The Best Lawyers in America® Recognizes Squire Patton Boggs Labor & Employment and Employee Benefits Lawyers (US)

GlobeThe 2021 edition of The Best Lawyers in America® has recognized 107 Squire Patton Boggs lawyers across 46 practice areas, including 19 of our Labor & Employment and Employee Benefits lawyers who received recognition in the areas of Employment Law – Individuals, Employment Law – Management, Labor Law – Management, Litigation – Labor and Employment, Workers’ Compensation Law – Employers, and Employee Benefits (ERISA) Law. Continue Reading

Department of Labor Issues Opinion Letter Clarifying Availability of Fluctuating Workweek Method of Calculating Overtime (US)

Employment LawIn the U.S., employees must be paid overtime compensation at a rate of one-and-one-half times their regular rate of pay for all hours worked in excess of forty (40) per workweek unless specifically exempted by law. For many employees, this means payment of a straight time hourly rate, and then payment of one-and-one-half times that hourly rate for each of their weekly overtime hours. However, for many years, the U.S. Department of Labor (DOL) has sanctioned an alternate method of paying employees whose hours of work fluctuate from week to week. This method, known as the fluctuating workweek (FWW) method of calculation, not only requires that employees subject to such arrangement work a variable number of hours per workweek, but that they receive a fixed salary that does not vary with the number of hours worked, and which is sufficient to satisfy the applicable minimum wage for every hour worked in those workweeks in which the number of hours the employee works is greatest. Continue Reading

“Go back to work or risk losing your job” – fact and fiction in the return to the workplace (UK)

Return to workFriday’s headline in The Telegraph above heralds the launch of a new Government campaign to encourage those currently working from home back into their physical offices.  A series of noticeably unnamed Government Ministers and “sources” told the paper that “bosses at struggling firms will find it easier to hand out P45s to people they never see than to those who have been at their desks during the pandemic” and separately, “People need to understand that WFH is not the benign option it seems…suddenly the word “restructure” is bandied about and people who have been working from home find themselves in the most vulnerable position“.  One Cabinet Minister went further – though seemingly unencumbered by the need for any actual evidence – and boldly asserted that “Companies will realise some people weren’t working as hard as they thought…there is going to be a review of how productive people are”.

Continue Reading

IRS Guidance on the Payroll Tax Executive Order (US)

On August 8, 2020, President Trump issued an Executive Order titled “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster” (the “Order”). The Order directs the Secretary of the Treasury to permit deferral of employee Old Age, Survivors and Disability Insurance (“OASDI”) taxes for payroll dates on and after September 1, 2020 through December 31, 2020.

The Order was the subject of a prior Blogpost on August 11, 2020.[1] That Post reviewed many legal and practical concerns associated with attempting to implement the Order. It also emphasized that the Secretary of Treasury was to issue guidance on how to implement the Order.

On August 28, 2020, the IRS issued Notice 2020-65 to provide long awaited guidance in relation to the Order. This Post summarizes the guidance in Notice 2020-65, and remaining legal and practical issues pertaining to the Order. Continue Reading

Department of Labor Schools Parents On Leave Options During Virtual Learning (US)

We previously blogged on the myriad challenges faced by workers whose children are returning to school this fall: some online, some in-person, and some a combination of both. As we noted in our prior post, the Families First Coronavirus Response Act (FFCRA), which is effective through December 31, 2020, provides up to eighty (80) hours of emergency paid sick leave (EPSL) to care for a minor son or daughter whose school, daycare, or regular daycare provider has closed or become unavailable due to COVID-19 related reasons. The FFCRA also provides up to twelve (12) weeks of job-protected expanded emergency family medical leave (EFML) to employees who have worked at least thirty (30) days and who require extended time-off due to school, daycare, or daycare provider closures or unavailability caused by COVID-19. For EPSL taken for childcare reasons and for EFML, employers must pay their employees at least two-thirds (2/3) their regular rate of pay, up to $200/day; however, the first two weeks of EFML may be unpaid. As with other aspects of the FFCRA, the Act only applies to employees of public employers and private employers with fewer than 500 employees.

But the FFCRA and its implementing guidelines did not fully address how the FFCRA could be utilized by parents facing virtual or hybrid educational options for their school-age children this fall. Trying to fill that gap, on August 27, 2020, the U.S. Department of Labor (DOL) updated its informal FFCRA guidance (which it provides in the form of FAQs on its website) to address virtual learning arrangements. Continue Reading

FLSA Compliance Update: Employers Must Exercise Reasonable Diligence In Tracking Hours Worked By Remote Workers (US)  

Due to the COVID-19 pandemic, many employers have implemented teleworking and other remote work arrangements for their employees. Because these employees are not physically present in the workplace, there has been some uncertainty surrounding what obligations employers have to under the Fair Labor Standards Act (“FLSA”) to monitor and track hours worked by non-exempt, hourly paid, remote employees. To address this uncertainty, on August 24, 2020, U.S. Department of Labor’s (“DOL”) Wage and Hour Division (“WHD”) issued a Field Assistance Bulletin providing guidance to employers on how to, consistent with the FLSA, track the number of hours of compensable work performed by non-exempt employees who are teleworking or otherwise working remotely, away from any employer-controlled worksite or premises. Although the guidance responds directly to needs created by new telework arrangements that have arisen as a result of COVID-19, it also applies to other telework or remote work arrangements more generally. Continue Reading

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