US Issues Joint Initiatives with Canada and Mexico Temporarily Restricting Travel Across Borders

Effective March 21, 2020, the United States entered into joint initiatives with Canada and Mexico to restrict travel across the land borders with each country. All non-essential travel across the US-Canada and US-Mexico borders is temporarily restricted. The restrictions are to remain in place for 30 days subject to review by each of the respective governments based on COVID-19 pandemic developments.

The DHS announcements defined “non-essential” travel as “travel that is considered tourism or recreational in nature.” Furthermore, the White House issued a Fact Sheet indicating that these restrictions will not apply to:

American citizens, lawful permanent residents, and individuals with valid travel documents;
Cargo shipments; and
Trade and business travel subject to additional screening.

Employers Can Take Advantage of Tax Credits Offsetting Emergency Leave-Related Expense Under Families First Coronavirus Response Act (US)

By Daniel Pasternak and Laura Lawless on March 21, 2020 Posted in Coronavirus, COVID-19, Department of Labor, Employment Law, FMLA, Health & Safety, Leave, News, Pay, Regulation, Sick Leave, Time Off, Wages

What a week it’s been. As of today, March 21, it has been three days since Congress passed the Families First Coronavirus Response Act (FFCRA or the Act) and it was signed into law. It’s also been three days during which employers have faced dwindling workforces due to employees who are self-quarantining due to exposure, or suspected exposure, to the virus, or because they live in states or cities with mandatory shelter-in-place orders preventing employees from reporting to work at businesses deemed “non-essential,” or because they must stay home with minor children whose schools and daycare facilities have closed due to concerns related to the COVID-19 pandemic. And it’s been a confusing three days as employers have sought answers to many important but unanswered questions about the new law.

With their employees struggling, some employers have been eager to provide immediate relief to employees under the emergency paid sick leave and paid family leave benefits provisions of the FFCRA. But concerns have come up that doing so now may not allow employers to take advantage of the tax credits provided under the law intended to offset the financial burden of these new federally-mandated benefits because the FFCRA states that it shall be effective “no later than” fifteen (15) days after its enactment, which, based on the date the President signed the bill into law, is April 2, 2020.

OFCCP Exempts New Federal Contracts Entered Into to Provide COVID-19 Relief From Certain Equal Employment Opportunity Requirements (US)

By Melissa Legault on March 21, 2020 Posted in Affirmative Action, Contractor, Contracts, Coronavirus, COVID-19, Department of Labor, Discrimination, Employment Law, Federal Contractors, News, OFFCP, Regulation

On March 17, 2020, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a temporary, three-month exemption from certain equal employment opportunity requirements for new supply and services and construction contracts “entered into specifically to provide Coronavirus relief.” In the National Interest Exemption Memorandum (NIE Memorandum), the OFCCP provided modified equal opportunity clause language that federal contractors may use in covered contracts and exempts such contracts from all affirmative action obligations, posting requirements, solicitation/advertisement requirements, and mandatory job listing requirements under the following laws administered by the OFCCP:

Executive Order 11246 (which prohibits federal contractors from discriminating against employees based on race, color, sex, sexual orientation, gender identity, religion, disability, veteran status, or national origin);
Section 503 of the Rehabilitation Act of 1973 (which prohibits discrimination against workers with disabilities); and
Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) (which prohibits discrimination in employment against veterans).

The NIE Memorandum applies to covered contracts entered into between March 17, 2020, to June 17, 2020 specifically related to coronavirus relief efforts. The OFCCP may extend the NIE Memorandum beyond the allotted three-month time period if special circumstances in the national interest so mandate. Continue Reading

UPDATE – 20 March 2020: New York Orders All Non-Essential Workers to Stay Home

By Meghan Hill on March 20, 2020 Posted in Coronavirus, COVID-19, Employment Law, Executive Order, Health & Safety, New York, News

With the number of coronavirus cases now topping 7,000 in New York state, on Friday, March 20, 2020, Governor Andrew Cuomo officially declared that all workers in non-essential businesses across New York state are required to remain at home starting Sunday evening, March 22 in order to combat the ongoing COVID-19 pandemic. Businesses that do not comply with the new mandate will be issued civil fines and mandatory closures will be enforced. Governor Cuomo is advising that this order is not a “shelter in place,” which applies to active shooter-type situations, but was clear that the directive is for New Yorkers to remain at home, although they may continue to or begin teleworking from home during this period. In addition, the Governor ordered that all barbershops, hair salons, tattoo or piercing parlors, nail salons, hair removal services, and related personal care services are required to close effective Saturday, March 21 at 8 pm.

A day before, on March 19, Governor Cuomo issued an Executive Order that all non-essential businesses reduce their in-person workforce by 75% by March 21, at 8 pm. This followed the Governor’s announcement just one day before that, on March 18, mandating an in-person workforce reduction by 50% for all non-essential businesses.

The Executive Order clarifies that essential businesses which are not subject to the order include: Continue Reading

Reducing personnel costs in the Corona crisis: how Germany supports employers

By Squire Patton Boggs on March 20, 2020 Posted in Benefits, Employee Welfare, Legislation, Wage and Hour

Germany supports employers by facilitating the payment of short-time work benefits (“KUG”). KUG is a service provided by the Federal Employment Agency to safeguard jobs and avoid redundancies when employees are temporarily unable to be employed. The previous regulations in this regard have been considerably improved. The new regulation is limited in time and is to expire at the end of 2021.

What is KUG?

KUG is paid by the Federal Employment Agency to compensate for the fact that a temporary reduction in working hours (and hence pay) is agreed between employees and the employer in a company or part of a company. If there is a works council, its co-determination rights must be observed.

Considerable loss of working hours

At the present time, there are two situations, in which employers can apply for KUG:

temporary closure of the company by the authorities means a complete loss of work for at least a large part of the workforce; or
an interruption in supply chains or a decline in demand for products or services means that employees cannot be employed at all or can only be employed on partial hours.

A WARNing – Business Closings and Mass Layoffs: The Unfortunate Reality In Light of COVID-19 (US)

By Katharine Liao on March 20, 2020 Posted in California, Coronavirus, COVID-19, Employment Law, Executive Order, Legislation, News, Regulation

In light of COVID-19’s global economic impact, employers continue to face the harsh reality that significant and even perhaps permanent changes to their business, including their workforce, will be necessary. As employers consider their options, unfortunately, closings and mass layoffs are amongst them.

In the US, employers must consider the federal Worker Adjustment and Retraining Notification (WARN) Act and various state versions of the WARN Act. There are so-called “mini-WARN” acts in the following jurisdictions: California, Connecticut, DC, Georgia, Hawaii, Illinois, Iowa, Maine, New Hampshire, New Jersey, New York, Tennessee, Vermont, and Wisconsin. The City of Philadelphia also has its own WARN act. Some states – Georgia, Maryland, North Dakota, and Ohio – require notice to state agencies but not to employees, and Michigan and Minnesota encourage, but don’t require, notice to employees prior to closings or mass layoffs.

If the federal WARN or state mini-WARN Acts apply, it puts employers in the difficult position of having to provide advance notice (typically 30-90 days), depending on size of the employer, the number of employees affected, and the jurisdiction.

Although during these challenging times, employers may take solace in the “unforeseeable business circumstances” exception within the federal WARN Act regulations – for which COVID-19 likely qualifies – not every state has the same exception. Continue Reading

New York Orders All Non-Essential Businesses to Reduce In-Person Workforce (US)

By Meghan Hill on March 20, 2020 Posted in Coronavirus, COVID-19, Employment Law, Executive Order, New York, News, Regulation

On March 18, 2020, New York Governor Cuomo issued an Executive Order that all non-essential businesses shall reduce their in-person workforce by March 20 at 8 pm. On March 19, guidance was released clarifying that in-person workforces at each location must be reduced by 75% from pre-state of emergency declaration employment levels. Employees are of course able to telework during this period. The Executive Order remains in effect through April 17, 2020.

Essential businesses which are not subject to the order include: Continue Reading

Ohio Unemployment Expansions Amidst COVID-19 Crisis (US)

By Traci Martinez on March 20, 2020 Posted in Coronavirus, COVID-19, Employment Law, News, Ohio

Ohio, like all other states, is facing an unprecedented rise in unemployment claims as a result of the COVID-19 pandemic. In Ohio, 111,055 unemployment claims were filed between March 15-18, 2020. At the same point just one week ago, there were under 4,000 claims. These numbers are expected to increase in the coming days and weeks as the State has shut down bars, restaurants, gyms, and hair salons.

To simplify the unemployment process, the Ohio Department of Job and Family Services (ODJFS) has developed an instruction sheet for layoffs and shutdowns related to COVID-19. ODJFS has instructed Ohio employers to provide this form to affected employees to assist them with the process of applying for unemployment benefits, as well as the following mass layoff number to expedite the processing of unemployment benefits: 2000180. Continue Reading

National Labor Relations Board Suspends All Union Representation Elections (US)

By Daniel Pasternak on March 19, 2020 Posted in News, NLRB, Unions

In yet another sign of the impact of the COVID-19 pandemic, on March 19, the National Labor Relations Board (NLRB or Board) announced that all representation elections – secret ballot elections held to determine whether employees wish to be represented by a labor union – are suspended, including mail ballot elections, until April 3, 2020. The Board’s announcement to suspend elections cited the health and safety of NLRB employees and members of the public involved in the election process, as well as limitations on the Board’s ability to conduct elections given the closure of several Regional Offices due to employee coronavirus exposure (Chicago, Cleveland, Detroit, Manhattan, and New Orleans) and because it has instructed all NLRB personnel to telework. Continue Reading

Staying Open in California (and Elsewhere) During Mandatory Coronavirus-Related Closures (US)

By Michael Kelly on March 19, 2020 Posted in California, Coronavirus, COVID-19, Employment Law, Executive Order, Health & Safety, Healthcare, Legislation, News

At last count, ten counties in Northern California have issued Health Orders dictating the mandatory shut down of all but “Essential Businesses”. The Counties are Alameda, Contra Costa, Sacramento, Santa Clara, Marin, San Mateo, San Francisco, Sonoma, Monterey, and San Benito. These Orders are substantially similar and, as drafted, specify numerous exceptions to permit Essential Businesses to continue to operate. Counties, in particular Santa Clara, have been issuing some FAQs to try to help the community understand what the Orders mean. For simplicity sake, this blog will cite the Santa Clara Order and FAQs. While other counties are all very similar, FAQs and interpretation may start to vary over time so be sure to check your specific county Order and FAQs.

If you have operations in an area subject to one of these orders and are contemplating staying open, there are several important things to note. Continue Reading