Statutory Update – COVID-19 Leave Legislation, July 1 Statutory Changes & More

July 1, 2020

COVID-19 Leave Legislation

Federal Guidance

Families First Coronavirus Response Act (FFCRA)

The Department of Labor (DOL) recently posted additional Q&A offering guidance around the use of leave provided under FFCRA for child care during the summer months:

    •  While paid leave under FFCRA is not available simply because a child’s school is closed for “summer vacation”, the unavailability of care – in the form of summer camp or summer enrichment programs in which the child was enrolled, for example – due to COVID-19 may be a qualifying reason for FFCRA leave (#67, 93).  More detailed guidance is available in the DOL’s June 26 Field Assistance Bulletin No. 2020-4.
    • The fact that an employee has been simultaneously working from home and caring for his or her child(ren) successfully to a point does not necessarily disqualify him or her from eligibility for FFCRA leave. The Q&A offers that eligibility may stem from a change in circumstances. (#91)
Return to Work

The Equal Employment Opportunity Commission (EEOC) has updated their FAQ addressing COVID-19 return to work considerations and application of the Americans with Disabilities Act (ADA/ADAAA) and the Rehabilitation Act. The FAQ offer guidance around medical exams (workplace temperature readings and COVID-19 and antibody testing) and employee health-related inquiries, confidentiality of employee health records, hiring practices and discrimination, and managing accommodations for employees who may be at higher risk for COVID-19.  An additional resource is the EEOC’s Pandemic Preparedness in the Workplace and the Americans with Disabilities Act, last updated on March 21.

On June 25 the Centers for Disease Control (CDC) added information to its site addressing individuals at high or increased risk of contracting COVID-19, including stating that COVID-19 risk “increases with age” rather than simply identifying age 65 as a threshold, as well as expanding its list of underlying medical conditions that may increase the severity of illness. Employers formulating return to work plans are encouraged to consider this guidance and include procedures to accommodate employees who may be at elevated risk.

On June 18 the DOL’s Occupational Safety and Health Administration (OSHA) released a document titled Guidance on Returning to Work, which provides guidance to employers on appropriate preparations for bringing employees back to work safely, including hazard assessment, basic hygiene, social distancing, identification and isolation of sick employees, workplace controls and flexibilities, and employee training. This guidance supplements OSHA’s March publication Guidance on Preparing Workplaces for COVID-19 and the White House’s April Guidelines for Opening Up America Again. Additional information specific to COVID-19 may be found on OSHA’s dedicated website.

Leave Donation Programs and COVID-19

On June 11 the Internal Revenue Service (IRS) issued Notice 2020-46, which states that cash payments employers make to qualifying charitable organizations (as defined in IRC §107(c)) providing relief to victims of the COVID-19 pandemic in exchange for sick, vacation or personal leave donated by employees will not be treated as compensation. Employees donating time will not be treated as receiving the value of the leave as income and therefore will not be required to pay taxes on the value (they may not claim a tax deduction, however). Donations must be paid to the selected organization(s) by December 31, 2020.

State and Local Legislation

District of Columbia Coronavirus Support Congressional Review Emergency Amendment Act of 2020

On June 8 the mayor of the District of Columbia signed the Coronavirus Support Congressional Review Emergency Amendment Act of 2020 (B23-0759, now D.C. Act 23-328). Effective June 9, the Act restates and/or replaces previously enacted legislation*. Also, while the provisions of the Act cover a number of topics, the information here is limited to the impact on the District of Columbia Family and Medical Leave Act (DC FMLA) and the Accrued Sick and Safe Leave Act (ASSLA).

COVID-19 Leave under DC FMLA:

    • Allows for 16 weeks of “COVID-19 Leave” during the COVID-19 public health emergency**.
    •  Individuals employed for at least 30 days prior to the request for leave are eligible to take unpaid leave due to an employee’s or household member’s official or healthcare provider-recommended quarantine, or to care for a child whose school or place of care is closed.
    • Applies to employers of all sizes.
    • Employers may require “reasonable” documentation of the need for leave.
    •  Any paid leave provided by the employer counts against the 16 weeks of allowable leave.
    • Employee may elect, but may not be required, to use this leave prior to any other company or statutory leave entitlement.
    • This leave entitlement expires on the date the COVID-19 public health emergency ends.

Paid Public Health Emergency Leave under ASSLA:

Beginning April 10, 2020, and for the duration of the COVID-19 public health emergency**, non-healthcare employers with 50 to 499 employees must provide paid leave for any of the reasons covered under Families First Coronavirus Response Act (FFCRA)’s Emergency Paid Sick Leave Act (EPSLA):

    • the employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
    • the employee has been advised by a healthcare provider to self-quarantine due to concerns related to COVID-19;
    • the employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis;
    • the employee is caring for an individual who is subject to an order as described in #1 or has been advised as described in #2;
    • the employee is caring for a son or daughter of such employee if the school or place of care of the son or daughter has been closed, or the child care provider of such son or daughter is unavailable, due to COVID-19 precautions;
    • the employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

Employees employed at least 15 days prior to leave are eligible.

Leave Entitlement:

    • Full-Time employees: 80 hours
    • Part-Time employees: the usual number of hours the employee works in a two-week period.

Pay: Employees must be compensated at their regular rate of pay. If the employee does not have a regular rate of pay, his or her rate should be determined by dividing the employee’s total gross earnings (including tips, commissions, piecework, or other earnings) during his or her most recent two-week period by the number of hours worked during that period. The employee’s rate may be no less than the District’s minimum wage.

Use:

    • Employees may use public health emergency leave concurrently with or after exhausting other company or statutory entitlement.
    •  If used concurrently, the employer may reduce the payment under emergency leave by the amount provided by other paid leave.
    • If an employee elects to use paid leave provided under this section after exhausting other paid leave, the employer may reduce the number of hours of paid leave an employee may use under this section by the number of hours of paid leave taken under federal or District law or the employer’s policies.
    • Employers may not require more than 48 hours’ notice of the need for leave; in an emergency, the employer must accept “reasonable” notice.
    • Employer may request documentation for absences exceeding three consecutive workdays, but must allow that documentation to be provided at least one week after the end of leave.  However, employers that do not contribute towards an employee’s health insurance premiums may not request certification of leave.

The Act is effective for 90 days, until September 6, 2020.

    • * COVID-19 Response Emergency Amendment Act (B23-0718 / Act 23-247): repealed – signed March 17, effective through May 26 (see our March 29 update for more detail)
    • COVID-19 Response Supplemental Emergency Amendment Act of 2020 (B23-0733 / Act 23-286): repealed – signed April 10, effective through May 26 (see our April 17 update for details)
    • COVID-19 Response Supplemental Temporary Amendment Act of 2020 (B23-0734 / Act 23-323): repealed – signed May 21, effective through June 8
    • Coronavirus Support Emergency Amendment Act of 2020 (B23-0757 / Act 23-326): expired – signed May 27, effective through June 8
    • Another similar bill, the Coronavirus Support Temporary Amendment Act of 2020 (B23-0758), is currently pending – it was sent to the mayor on June 22, with response due July 7.
    • ** “COVID-19 public health emergency” refers to the emergencies declared via Mayor’s Orders 2020-045 and 2020-046 on March 11, including any extensions.
Seattle, WA Paid Sick and Safe Time for Gig Workers

On June 12 the mayor of Seattle approved the Paid Sick and Safe Time for Gig Workers Ordinance (Ordinance No. 126091), which temporarily provides Paid Sick and Safe Time (PSST) to individuals performing “gig” work in Seattle.   

Effective July 13, 2020.

Applies to the following “Hiring Entities” who hire 250 or more gig workers worldwide:

    • Organizations operating as “Food delivery network companies” in Seattle offering prearranged delivery services for compensation using an online-enabled application or platform to connect customers with workers for delivery from eating and drinking establishments, food processing establishments, grocery stores, or any facility supplying groceries or prepared food and beverages for an online order; and
    • Transportation services companies” licensed or required to be licensed under Seattle Municipal Code Chapter 6.310 offering prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a “transportation network company endorsed vehicle,” as defined in SMC Chapter 6.310 (e.g., Uber, Lyft).

Leave Entitlement: 

    • For workers who began working for the hiring entity before July 13, 2020, hiring entities have the choice of one of two methods* for calculating PSST entitlement:
        • Calculating an accrual of 1 day of PSST for every 30 days worked** beginning the later of October 1, 2019 or the commencement of work; or
        • Providing at least 5 days of PSST as of July 13, 2020, following which workers will accrue at least 1 day of PSST time for every 30 days worked** after July 13.
    • Hiring entities may subtract compensation provided for any PSST-qualifying paid leave used between October 1, 2019 and July 13, 2020; this deduction must be itemized in a compensation statement.
    • Workers who commence work on or after July 13, 2020 will accrue 1 day of PSST for every 30 days worked** on or after July 13.
    • Hiring entities may provide PSST in advance of accrual.
    • * The selected option must be filed with the Office of Labor Standards by July 27, 2020.
    • ** A “day worked” is any calendar day that a worker performs services in whole or in part in Seattle.

Use:

    • A worker may use accrued PSST if he or she performed work in Seattle during the 90 days prior to the request for leave.
    • Accrued PSST may be used for any of the following reasons:
        • For the diagnosis, care or treatment of a mental or physical health condition of the worker or a covered family member, including preventive care;
        • If the hiring entity has suspended operations for any health- or safety-related reason, including by order of a public official to limit exposure to an infectious agent, biological toxin or hazardous material;
        • When a covered family member’s school or place of care has been closed;
        • For the worker’s or a family (or household) member’s needs resulting from domestic violence, sexual assault or stalking.
    • PSST may be requested for immediate use, including consecutive days, and may be used in 24-hour increments.
    • Hiring entities may require oral or written verification of the need for PSST exceeding three consecutive days, except during a civil emergency proclaimed by a public official in response to COVID-19. The request must be made in a manner that does not result in an unreasonable burden for the worker, or intrude upon the worker’s privacy. The worker must be allowed at least 10 days to provide such verification. 
    • Hiring entities may permit a worker to donate accrued PSST to another worker.

Pay:

    • For each 24-hour day of use, a gig worker is entitled to the average daily compensation (including tips) in his or her highest earning calendar month since October of 2019. 
    • Used PSST must be paid by the later of 14 days from the date of use or the next scheduled pay date. In the event verification is required, the worker must be paid for PSST no later than the next scheduled pay date after verification is provided.

Carryover: Workers must be permitted to carry over at least 9 days of unused PSST from one 12-month benefit period to the next (calendar year unless otherwise defined by the hiring entity in a written policy). A hiring entity may allow a more generous carry over provision.

Termination: If a worker separates from work due to inactivity, deactivation or other reason and recommences work for the same hiring entity within 12 months, the worker is entitled to previously accrued time.

Notification: Hiring entities must provide each worker with:

    • Written notice of rights in a manner sufficient to reach all workers.  This notice must include terms of accrual and use, retaliation protections and complaint procedures.  Hiring entities are responsible for communicating this information to workers regardless whether a model notice is provided, though one is expected.
    • A monthly accounting of accrued, used and available PSST, as well as the applicable compensation rate. This accounting may be provided on the worker’s pay stub, a weekly compensation statement or by electronic means. Hiring entities must retain records for three years.

Employers are prohibited from retaliating against or otherwise impeding a worker from exercising his or her rights under the ordinance.

Expiration Date: Workers may accrue and use PSST until 180 days after the termination of the civil emergency proclaimed by the Mayor on March 3, 2020, or the termination of any concurrent civil emergency proclaimed by a public official in response to the COVID-19 public health emergency and applicable to the city, whichever is latest. The remaining requirements will stay in effect to retain provisions necessary for recordkeeping and enforcement, to the later of three years or December 31, 2023.

Refer to the Seattle’s Office of Labor Standards’ website for more information, including upcoming guidance and the model notice.

More COVID-19 information and resources may be found on MMA’s Coronavirus Outbreak Resource Page.

 

Other Leave News

Statutory Disability and Paid Family Leave Benefit Changes

Effective TODAY (July 1, 2020):

California

    • Paid Family Leave (CA PFL) maximum duration increases from 6 weeks to 8 weeks in a 12-month period.
    • San Francisco Paid Parental Leave (SF PPL) maximum duration increases from 6 weeks to 8 weeks in a 12-month period.

District of Columbia Paid Family Leave (DC PFL) benefits entitlement begins (see our May 29 update for recent information).

New Jersey

    • Temporary Disability Insurance (NJ TDI) and Family Leave Insurance (NJ FLI) benefit percentage increases from 66 2/3% with a maximum of $667 per week to 85% with a maximum of $881 per week.
    • Family Leave Insurance (NJ FLI) maximum duration increases from 6 weeks to 12 weeks in a 12-month period; intermittent allowance increases from 42 to 56 days.

Rhode Island Temporary Disability Insurance (RI TDI) and Temporary Caregiver Insurance (RI TCI) benefit maximum increases from $867 to $887 per week; the maximum with the dependency allowance increases from $1,170 to $1,197 per week.

 

Maryland Healthy Working Families Act Amendment

House Bill 880 amends Maryland’s paid sick leave law effective October 1, 2020 to include a legal ward of the employee and/or of the employee’s spouse, and a legal guardian of the employee’s spouse as covered family members.

Minneapolis, MN Sick and Safe Time Ordinance Upheld

On June 10, 2020, the Minnesota Supreme Court upheld an April 2019 Court of Appeals ruling that the Sick and Safe Time Ordinance applies to employers based outside the city. The Ordinance requires that employees who work at least 80 hours per year within the geographic boundaries of the city be able to accrue up to 80 hours of sick and safe time annually; employers with 6 or more employees must provide this time as paid leave. The Court also held that the Ordinance does not conflict with the state’s Sick and Safe Leave (“kin care”) law.

Philadelphia, PA Domestic Workers Bill of Rights

Effective May 1, 2020, individuals and companies who employ domestic workers are obligated to comply with Philadelphia’s Domestic Worker Bill of Rights (DWBR).  Passed last fall, the law:

Applies to any employer (“Hiring Entity”) as defined by the Pennsylvania Wage Payment and Collection Law (Act No. 329) and the state’s Minimum Wage Act, who employs a domestic worker, as well as any individual, partnership, association, corporation, business trust or combination thereof, that pays a wage or wages for the services of a domestic worker.

    • Includes any entity, person or group of persons that provides compensation directly or indirectly to a domestic worker for the performance of domestic services and any entity, person or group of persons acting directly or indirectly in the interest of the hiring entity in relation to the domestic worker.

Covers all employees, including part-time and temporary employees, as well as independent contractors, who work for one or more employer for the purposes of caring for a child; serving as a companion or caretaker for a sick, elderly or disabled person; housekeeping or house cleaning; cooking; providing food or butler service; parking cars; cleaning laundry; gardening; personal organizing; or for any other domestic service purpose.

    • Excludes family members; house sitters, pet sitters, dog walkers; individuals who work at a business primarily operated out of their residence, such as a home daycare; household repair or maintenance persons, such as roofers, plumbers, and painters; home healthcare workers paid through public funds; and anyone under the age of 18

Assigns minimum protections to workers, including requirements around meal and rest breaks, and paid and unpaid leave:

    • Unpaid leave will accrue at a rate of 1 hour per 40 hours of work, to a maximum of 40 hours per calendar year, and may be used in accordance with the city’s Promoting Healthy Families and Workplaces ordinance:
        • Diagnosis, care or treatment of the employee’s or a covered family member’s health condition, including preventive care;
        • Needs associated with domestic abuse, sexual assault or stalking.
    • Paid leave* will also accrue at a rate of 1 hour per 40 hours of work, to a maximum of 40 hours per calendar year, and may be used for:
        • Replacement of compensation for work time lost due to a change in work schedule or cancellation of planned work time by the employer;
        • “Significant and unexpected” personal matters;
        • Any reason allowed under the Promoting Healthy Families and Workplaces ordinance (listed above); or
        • Any other reason established by regulation.
        • * Important note:  Unlike similar laws (see below), Philadelphia’s DWBR includes a mechanism to allow workers to accrue and carry time across employers. The details of the paid leave compensation system will be developed in future regulations, and the paid leave provisions are not effective until those regulations are adopted.

Requires employers to:

    • Provide workers with notice of their rights, including how to file a complaint (it is expected that a model notice will be provided by the city);
    • Provide workers working 5 hours or more per month (or “on a casual basis”) with a written contract outlining job duties, wages, weekly schedule including the expected number of hours per week, timing and method of payment, breaks for rest and meals, paid or unpaid leave including sick time, paid holidays, transportation or living accommodations, personal time for live-in workers, and any other applicable benefits, terms or conditions so long as no provision negatively impacts the worker’s rights under federal, state or local law.
    • Provide minimum notice of termination, except in cases of misconduct: four weeks for live-in workers and two weeks for all others.
    • Create and maintain records documenting hours worked, pay rate, leave time earned and used, and the existence of a written contract.

Prohibits employers from:

    • Keeping workers’ personal documents, or recording or otherwise monitoring a worker under private circumstances, such as while in his or her own living quarters, during private communications, or while dressing or using bathroom facilities.
    • Retaliate against a worker or in any way interfere with his or her ability to exercise rights under the law.

More information may be found in the text of the law (added as Chapter 9-4500 of The Philadelphia Code). The city has posted resources, including a contract template, to assist employers with compliance – employers are encouraged watch this space for upcoming regulations, especially those addressing paid leave. 

Philadelphia’s law follows in the footsteps of those enacted in ten other jurisdictions, including California, Connecticut, Hawaii, Illinois, Massachusetts, Nevada, New Mexico, New York, Oregon, and Seattle, WA.  Federal bills (S.2112 and H.R.3760) were introduced mid-2019 but appear to have stalled in committee.

Virginia Mandate on Disability Leave Duration Following Childbirth

On April 9, the governor of Virginia signed Senate Bill 567 (now VA Code §38.2-3407.11:4), which requires that insured individual or group disability policies that include maternity benefits provide at least 12 weeks of payable benefit immediately following childbirth. This requirement applies to policies written in Virginia on or after July 1, 2021.

Pregnancy and Lactation Accommodation

Oregon’s Employer Accommodation for Pregnancy Act (ORS 659A.146-148) became effective for employers with six or more employees as of January 1, 2020.  Employers must post notice of the law’s provisions in a conspicuous and accessible location, as well as provide written notice to all current employees by June 29, to new hires and to any employee within 10 days of informing the employer of her pregnancy. More information, as well as the model notice, may be found on the state’s Bureau of Labor and Industries’ website.

South Carolina: On June 25 the governor of South Carolina signed the South Carolina Lactation Support Act (H3200, now Act No. 141), which requires employers to allow employees reasonable break time, paid or unpaid, to express milk, as well as provide a private location other than a restroom in order to do so. Where possible, employees should have this time coincide with scheduled break periods and make reasonable efforts to minimize disruption to the employer’s operations.  Employers are prohibited from discriminating against or otherwise penalizing any employee for exercising her rights under the Act.

The Act is effective July 25, 2020 and will be added as Section 41-1-130 to the SC Code of Laws.  Prior to the effective date the state’s Human Affairs Commission is expected to post pertinent information for employers and employees on its website. Employers must comply with the Act’s requirements within 30 days from the date this information is provided.

Tennessee: On June 22 the governor of Tennessee signed the Tennessee Pregnant Workers Fairness Act (SB2520) requiring employers with 15 or more employees to make reasonable accommodations for medical needs associated pregnancy and childbirth, unless the employer can demonstrate that a particular accommodation presents undue hardship. If the employer requires for other medical conditions, healthcare provider certification may be requested for accommodation related to temporary transfer to a vacant position, job restructuring, light duty, or time away from work. While this certification is being obtained, the employer must engage the employee in an interactive process to determine if a reasonable accommodation can be provided. Employers are prohibited from requiring an employee to take paid or unpaid leave of absence if another accommodation is available, or for discriminating against or otherwise penalizing any employee who requests accommodation. The Act amends Title 50 of the Tennessee Code and will become effective October 1, 2020.

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

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Statutory Update – COVID-19 Leave Legislation; NM, VA and WA Pregnancy Accommodations

May 1, 2020

Federal Guidance

Below are links to various resources providing guidance on recently enacted Federal COVID-19 legislation.  Additional information may be found in previous Statutory Update releases posted on the MMA ADL Blog.

Families First Coronavirus Response Act (FFCRA)

Applicable to employers with fewer than 500 employees

H.R.6201

Department of Labor (DOL)

Internal Revenue Service (IRS)

State and Local Legislation

California COVID-19 Supplemental Paid Sick Leave

On April 16 the governor of California issued Executive Order N-51-20, providing Food Sector Workers up to 80 hours of “COVID-19 Supplemental Paid Sick Leave (SPSL).”

Applies to all private employers (or “Hiring Entities”) with 500 or more employees in the United States. The method applied to calculating size is the same as that under Families First Coronavirus Response Act (FFCRA).

Eligible Employees are Food Sector Workers who meet all of the following criteria:

    • The employee performs work in a food-related industry or in the retail food supply chain, including pick-up, delivery, warehousing, packaging, retail or preparation (as fully defined in 1(b) of the ordinance);
    • The employee is exempt from Executive Order N-33-20 as an Essential Critical Infrastructure Worker; and
    • The employee leaves his or her home to perform work for or through a Hiring Entity.

Leave Entitlement:

    • Considered Full-Time or scheduled to work an average of 40 hours per week for the Hiring Entity for the two-week period preceding leave: 80 hours
    • Employees not falling into the category above are eligible for leave equivalent to the total number of hours normally scheduled over a two-week period.  If the employee works a variable number of hours, eligibility for leave is calculated at 14 times the average hours the employee worked each day for the Hiring Entity during the 6-month period preceding leave (or since date of hire, if shorter).
    • SPSL is in addition to leave provided under California Paid Sick Leave.
    • An employer may not require an employee to use any paid or unpaid leave or time off prior to or instead of SPSL.
    • Employers who, as of April 16, 2020, provide leave of equivalent or greater value than, and for the same reasons for use as, SPSL are not required to provide additional leave.

Reasons for Use:

    • The employee is subject to a federal, state or local quarantine or isolation order related to COVID-19;
    • The employee is advised by a healthcare provider to self-quarantine or self-isolate due to concerns related with COVID-19;
    • The employee is prohibited from working by the Hiring Entity due to health concerns related to potential transmission of COVID-19.

Pay: Each hour of SPSL must be paid at the rate which is the highest of the following, to a maximum of $511 per day and a total of $5,110:

    • The employee’s regular rate of pay for the latest pay period;
    • State minimum wage; or
    • Local minimum wage.

Employers must display a notice in a conspicuous place accessible to all employees. If employees do not frequent a workplace the notice may be distributed electronically. A model notice has been posted.

The Department of Industrial Relations (DIR) has provided additional information on its website in the form of FAQ.

The order was effective immediately upon signing, and its requirements extend the duration of any statewide stay-at-home order.

Los Angeles County, CA Supplemental Paid Sick Leave

On April 28 Los Angeles County’s Board of Supervisors unanimously approved the Worker Protection Ordinance establishing Supplemental Paid Sick Leave (SPSL) for employees impacted by COVID-19. The ordinance’s leave entitlement requirements apply retroactively to March 31 and expire December 31, 2020, unless extended. The ordinance is similar to those recently passed in San Francisco (below), the City of Los Angeles, and San Jose (both covered in our April 17 release).

Applies to employers as defined under California Labor Code Section 18 with 500 or more employees nationally.

Excludes:

An eligible employee is anyone employed as of April 28, 2020 and who performs any work in the unincorporated areas of Los Angeles County. 

Excludes:

    • Employees who are able to work from home.
    • At the employer’s discretion, emergency responders or healthcare providers (as defined in the ordinance)
    • Independent contractors. Employers must be able to demonstrate that an individual is an independent contractor and not an employee.
    • Food sector workers covered under California Supplemental Paid Sick Leave (Executive Order N-51-20).
    • Employees covered by a Collective Bargaining Agreement if the CBA is bilaterally modified to waive the ordinance’s provisions in clear and unambiguous terms.

Leave Entitlement: 

    • Employees working 40 hours per week or classified as Full-Time: 80 hours. SPSL is calculated based on the employee’s highest average two-week pay from January 1, 2020, through April 28.
    • Employees working less than 40 hours per week and not classified as Full-Time are eligible for an amount of SPSL equal to the employee’s average two-week pay from January 1, 2020, through April 28.
    • SPSL is in addition to any paid time off available to an employee under the California Paid Sick Leave law (CLC §246).
      • However, an employer’s obligation to offer SPSL may be reduced for every hour the employer allowed an employee to take paid time off for reasons consistent with those outlined under the ordinance (listed below) on or after March 31, 2020, not including any previously accrued leave.

Pay:  The maximum amount of benefit available per day is $511, with an aggregate maximum of $5,110

Use:

    • An employee’s request for SPSL must be in writing, which includes e-mail and text message.
    • An employer may not require an employee to use any other paid or unpaid leave or time off prior to or instead of SPSL.
    • Employers may require a doctor’s note or other documentation for the use of SPSL.

Reasons for Use:

    • A healthcare provider or public official requires or recommends the employee isolate or self-quarantine to prevent the spread of COVID-19;
    • The employee is subject to a federal, state, or local quarantine or isolation order related to COVID-19 (e.g., is at least 65 years old or has a health condition such as heart disease, asthma, lung disease, diabetes, kidney disease, or weakened immune system);
    • The employee needs to care for a family member (as defined in the ordinance) who is subject to a federal, state, or local quarantine or isolation order related to COV1D-19 or has been advised by a health care provider to self-quarantine related to COVID-19; or
    • The employee takes time off work to provide care for a family member whose senior care provider or whose school or child care provider ceases operations in response to a public official’s recommendation.

An employer may not discharge, threaten to discharge, demote, suspend, reduce other employee benefits, or in any manner discriminate or take adverse action against any employee in retaliation for exercising rights protected under the ordinance.

San Francisco, CA Public Health Emergency Leave Ordinance (PHELO)

On April 17 the mayor of San Francisco signed Ordinance No. 59-20, or the Public Health Emergency Leave Ordinance (“PHELO”). The requirements of the ordinance are effective until June 17, 2020, unless extended, or when the San Francisco Public Health Emergency is terminated, if earlier

Applies to private employers as defined under California Labor Code Section 18, with 500 or more employees “worldwide”.

Eligible employees are those who perform any work within the geographic boundaries of the City and County of San Francisco. “Employee” is as defined under California Labor Code §2750.3(a) and includes part-time or temporary workers and participants in a Welfare-to-Work Program administered by the Human Services Agency. It also includes individuals who perform limited work within the city and are considered employees under Rule 6 of the Rules implementing the San Francisco Paid Sick Leave Ordinance (PSLO).

Excludes:

    •  Employees who are able to work from home;
    • Employees covered by a Collective Bargaining Agreement if the ordinance’s requirements are waived in the CBA in clear and unambiguous terms;
    • Independent contractors (consistent with CA law).

Leave Entitlement:

    • Full-Time employees as of February 25, 2020, are eligible for 80 hours of Public Health Emergency Leave (PHEL).
    • Part-Time employees as of February 25, 2020, are eligible for PHEL hours equal to the average number of hours over a two-week period the employee was scheduled during the 6 months prior to February 25, 2020, including hours for which the employee took any type of leave.
    • For employees hired after February 25, 2020, the number of PHEL hours to which they are entitled is equal to the number of hours worked, on average, over a two-week period between the date of hire and the date upon which the leave is taken, including hours for which an employee took any type of leave.
    • The maximum amount of PHEL leave available is 80 hours.
    • PHEL is in addition to any paid time off an employer offered or provided employees on or before the PHELO’s effective date (April 17). However:
      • An employer’s obligation to offer PHEL may be reduced for every hour the employer allowed an employee to take paid time off for reasons consistent with those outlined under the ordinance (listed below) on or after February 25, 2020, not including any previously accrued hours.
      • Employers that provide paid leave under California Supplemental Paid Sick Leave (Executive Order N-51-20, described above) are permitted to offset that leave.
      • Note: that the reasons for use under the PHELO are broader than those under Executive Order N-51-20, so if a company falls under both the PHELO and the Executive Order, the company will need to ensure compliance with both.

Pay:

    • PHEL must be calculated in the same manner as paid sick leave under the PSLO (see §12W.3(h)).
    • Employers must provide payment for PHEL no later than the payday for the next payroll period after PHEL is taken.

Reasons for Use:

    • The employee is subject to a federal, state or local COVID-19 quarantine or isolation order, or is caring for a family member* who is under such quarantine;
    • The employee or a family member is a member of a “vulnerable population” as defined in Order No. C19-05 and unable to work due to recommendations in that order, Order No. C19-07b, or any similar order recommending or requiring restrictions for vulnerable or high-risk individuals.
    • The employee has been advised by a healthcare provider to self-quarantine due to COVID-19, or is caring for a family member who has been so advised**;
    • The employee or a family member is experiencing symptoms of COVID-19 and is seeking medical diagnosis**;
    • The employee is caring for a family member whose school or care provider is closed due to COVID-19;
    • The employee is experiencing any other substantially similar condition specified by the Local Health Officer or by the U.S. Secretary of Health and Human Services.

* Family members are as defined under the San Francisco Paid Sick Leave Ordinance.

** Employers of employees who are healthcare providers or emergency responders (as defined under FFCRA §826.30(c)) may limit these employees’ use of PHEL, but must at a minimum allow them to use PHEL if they have been directed by a healthcare provider to self-quarantine, or if they are experiencing COVID-19 symptoms and do not meet the CDC guidance for criteria to return to work for healthcare personnel with confirmed or suspected COVID-19.

Use:

    • Employees may use PHEL before using other accrued paid time off. An employee may choose, but the employer may not require an employee, to use other paid time off before using PHEL.
    • Employers may limit an employee’s use of PHEL hours in a given work week to the average number of hours over a one-week period that the employee was scheduled over the previous six months ending on February 25, 2020, including hours for which the employee took leave of any type.
    • Employers may not require a minimum increment for use of more than one hour.
    • Employers may require reasonable advance notice, but only if the need for leave is foreseeable.
    • An employer may require an employee to identify the basis for requesting PHEL, but may not require the disclosure of health information or other documentation, such as a doctor’s note or letter from a child care facility.
    • Upon an employee’s separation from employment, an employer is no longer obligated to provide or pay for any Public Health Emergency Leave not used prior to separation. Note:
      • “Furlough” is not considered a separation from employment.
      • The April 24 FAQ indicate that if an employee separates from an employer for any reason and is rehired by the employer within one year from the date of separation, unused PHEL must be reinstated.

Notice to Employees

    • Notice must be provided immediately in a manner calculated to reach all employees (posting at the workplace, electronic distribution, and/or posting on an employer’s intranet) in English, Spanish, Chinese, and any language spoken by at least 5% of employees at the worksite.
    • “To the extent feasible” the amount of PHEL available to the employee must be included on either the employee’s itemized wage statement or in a separate writing provided on the designated pay date with the employee’s payment of wages, consistent with requirements under the California Paid Sick Leave law (CLC §246(i)).

Employers must retain records documenting work schedules, hours worked, and PHEL taken by employees for a period of four years.

The ordinance, model notice and FAQ may be found on the Office of Labor Standards Enforcement’s (OLSE) webpage.

An employer may not discharge, threaten to discharge, demote, suspend, reduce other employee benefits, or in any manner discriminate or take adverse action against any employee in retaliation for exercising rights protected under the ordinance.

San Jose, CA COVID-19 Paid Sick Leave Guidance

On April 7, San Jose’s City Council adopted Ordinance No. 30390 requiring paid sick leave for employees who must leave their homes to perform “essential work” (see our April 17 release for details).  The city’s Office of Equality Assurance has since posted guidance on its website, including an April 16 Opinion Letter, FAQ (in multiple languages) and an Employee Rights Notice (though no specific notification requirements have been outlined just yet).

Colorado Health Emergency Leave with Pay (“HELP”) Amendment

Colorado “HELP”, on which MMA ADL reported in our March 20 and April 8 releases, has been amended once again.  The following changes are effective as of April 27:

    • The list of industries included has been expanded to include retail establishments, real estate sales and leasing, offices and office work, elective medical, dental and health services, and various personal care services (industry descriptions may be found on the Colorado Department of Labor and Employment’s (CDLE) website).
    • Benefit entitlement has increased from four days at full pay to two weeks (calendar days, maximum 80 hours) at 2/3 the employee’s regular rate of pay (as defined in Rule 1.8).
    • Reasons for leave now include (updates in bold type): (1) Flu-like or respiratory illness symptoms; and (2) Quarantine or isolation instructions from a healthcare provider or authorized government official.
    • Leave ends once the employee has been fever-free for 72 hours, with other symptoms resolving as well, but not earlier than after 7 calendar days off from work (10 for healthcare workers).

Additional notes:

    • Employees are paid only for days they would have worked.
    • Employers may require documentation for taking HELP, but only as consistent with what the Family and Medical Leave Act (FMLA) permits and with the additional limitation that the employee be allowed to provide the documentation (1) upon return from leave, and (2) in the form of his or her own written statement instead of documentation directly from a healthcare provider (see FAQ for more details).
    • Employers who already offer all employees an amount of paid leave sufficient to comply with HELP requirements do not need to offer additional paid leave. However, an employee who exhausted paid leave provided by the employer but then qualifies for paid sick leave under HELP is entitled to the additional paid sick days.

HELP’s leave requirements have been extended to May 26; however, additional extensions may follow if the State of Disaster Emergency declared by the governor continues.

The CDLE’s website reflects the changes above, and any changes previously announced, in the HELP FAQ and Rules.

Washington Protections for High-Risk Individuals

On April 13 the governor of Washington issued Proclamation 20-46, which requires employers to protect individuals identified by the Centers for Disease Control (CDC) as at higher risk for severe illness from COVID-19 by:

  • Utilizing all options for alternative work assignments, including telework, alternative or remote work locations, reassignment, and social distancing measures;
  • If an alternative work assignment is not feasible, allowing use of employer-provided accrued leave or unemployment benefits (at the employee’s discretion); and
  • Maintaining employer-related health benefits during any period of paid or unpaid leave.

Employers are prohibited from taking any adverse action against any employee exercising his or her rights under the proclamation.

These requirements are in effect through June 12, 2020, unless extended.

More COVID-19 information and resources may be found on MMA’s Coronavirus Outbreak Resource Page.

Other Leave News

Accommodations and Anti-Discrimination Protections for Pregnant Workers

New Mexico: HB25, amends the state’s Human Rights Act effective May 20, 2020 to explicitly prohibit discrimination on the basis of pregnancy, childbirth or condition related to pregnancy or childbirth.  Employers must make reasonable accommodations for employees with needs arising from these conditions, and may not require an employee to take paid or unpaid leave of absence if another accommodation is available.

Virginia: Identical bills HB827 and SB712 amend the Virginia Human Rights Act and require employers to provide reasonable accommodations for needs associated pregnancy, childbirth or lactation. Employers are prohibited from requiring an employee to take paid or unpaid leave of absence if another accommodation is available, or for discriminating against or otherwise penalizing any employee who requests accommodation. Employers are required to notify employees of these protections via conspicuous posting, entry in the employee handbook, and in writing to new hires and within 10 days to any employee who provides notice that she is pregnant. The law takes effect on July 1, 2020.

Washington: HB2266 requires employers to provide reasonable accommodations for pregnancy and pregnancy-related conditions. Accommodations may include restructured or modified work duties, scheduling flexibility for prenatal visits, and break times for expression of breast milk without a healthcare provider’s certification (for up to two years). Employers are prohibited from taking any adverse action against an employee for requesting such accommodation. These requirements amend existing regulations effective June 11, 2020.

 

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

 

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved. 

Statutory Update – State COVID-19 Leave Legislation Updates

April 17, 2020
State Disability and/or Paid Family Leave Program Responses to COVID-19

Updates from our previous version of this table are in bold type:

  Program / Change Helpful Links
California State Disability Insurance (SDI):

  • Benefits may be available with medical provider’s certification or written order from a public official
  • 1-week waiting period waived

Paid Family Leave (PFL): Benefits may be available with medical provider’s certification or written order from a public official

Paid Sick Leave: self-quarantine may be considered “preventive care”

EDD – COVID-19 information and state programs

EDD – COVID-19 FAQ

DIR Guidance on CA Paid Sick Leave

Summary of Programs for Workers

Hawaii Temporary Disability Insurance: no changes to law, however, benefits may be available during quarantine with healthcare provider certification COVID-19: Labor Benefits Fact Sheet

TDI FAQ

Hawaii Department of Labor

Hawaii Employers Council

New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI): Benefits may be available during mandatory or recommended quarantine due to exposure to or attempt to prevent the spread of a communicable disease during a State of Emergency or public health order; the one week waiting period for TDI is waived for leave for this reason.*

Earned Sick Leave: law as written enables employees to take time off from work for public health emergencies; this was expanded by S2304 to specify reasons associated with a state of emergency declaration.*

NJ DOL – State Benefits and COVID-19

NJ State Benefit Scenarios

New York Disability Benefits (DBL): no changes to the law itself, however some benefit may be available in coordination with Emergency Paid Sick Leave (see our March 20 release for details)

Paid Family Leave (PFL): The definition of “serious health condition” has been expanded to include a family member’s COVID-19 diagnosis.**

Emergency Paid Sick Leave: leave for quarantined workers effective March 16; separate accrued paid sick leave requirements begin later this year***

Attorney General’s Guidance

New Paid Leave for COVID-19

Puerto Rico Temporary Disability (SINOT): no announced changes

Paid Sick Leave:

  • On April 9 the governor of Puerto Rico signed House Bill 2428 (available only in Spanish, and now Act No. 37-2020). The Act permanently amends the current paid sick leave law (Act No. 180-1998) to provide non-exempt employees who are sick or suspected of being sick with a pandemic illness during a state of emergency five days of emergency paid sick leave after all other leave has been exhausted.
  • On March 13 Puerto Rico’s Department of Labor issued guidance that included instruction that employees be entitled to use their sick leave for any true need associated with COVID-19 (Opinion 2020-01, available only in Spanish).
Rhode Island Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI): 7-day waiting period waived; self-attestation accepted temporarily for individuals under quarantine

Sick and Safe Leave: no changes; law as written enables employees to take time off from work to care for themselves or family members affected by COVID-19

Workplace Fact Sheet
Washington Paid Family and Medical Leave (PFML): no COVID-19 changes

Paid Sick Leave: no changes; law as written enables employees to take time off from work for public health emergencies

ESD – COVID-19 Information for Workers and Businesses

WA PFML COVID-19 FAQ

Paid Sick Leave COVID-19 FAQ

WA State Benefit Scenarios

* Senate Bill 2304 (P.L.2020, c.17) was signed by the governor of New Jersey on March 25, 2020. The law expands the definition of “serious health condition” under NJ TDI, FLA and the New Jersey Family Leave Act (NJ FLA) to include quarantine due to illness from, exposure to, or in attempt to prevent the spread of, a communicable disease during a State of Emergency or under public health order, and waives the one-week TDI waiting period for leave for this reason. The law also amends the Earned Sick Leave Law to include needs associated with a state of emergency declaration among reasons for leave.

Senate Bill 2374 (P.L.2020, c.23), signed on April 14, 2020 and effective retroactively to March 25, removes mandatory or recommended quarantine due to illness from, exposure to, or in attempt to prevent the spread of, a communicable disease during a State of Emergency or under public health order from the definition of “serious health condition” under TDI, FLI and FLA (per S2304) and adds it to reasons for leave. The law also further amends FLA to provide leave to care for a child whose school or place of care has closed by order of a public official due to epidemic or other public health emergency. The law includes guidance around certification, intermittent leave and denials for FLA leave taken for public health emergency reasons.

** Emergency amendment to the NY PFL law announced by NY Workers Compensation Board (WCB) on March 27, 2020, which expires in 90 days (approximately June 25, unless extended). This is separate from Emergency Paid Sick Leave and “fast tracking” to NY DBL and PFL benefits covered in our March 20 release.

*** NY WCB has clarified that the breakdown of employers by size for Emergency Paid Sick Leave obligations is based on an employer’s national employee count. Additional note: Emergency Paid Sick Leave was ultimately passed as S8091, with no changes in provisions. Comprehensive paid sick leave was passed April 3 as part of the state budget (S7506); the law is effective September 30 with leave entitlement beginning January 1, 2021. See our March 20 and March 25 releases for more details.

Los Angeles, CA COVID-19 Supplemental Paid Sick Leave

As reported in our April 8 release, on April 7, 2020 the mayor of Los Angeles signed Ordinance No. 186590, or “COVID-19 Supplemental Paid Sick Leave”, requiring employers to provide paid sick leave to employees working in Los Angeles.  Later that same day, the mayor issued an Emergency Order suspending the Ordinance as passed and replacing certain provisions:

Provision Ordinance Emergency Order *
Effective Date Effective April 10, 2020 through December 31, 2020 Effective April 7, 2020 until two weeks after expiration of the COVID-19 local emergency period
Employers Impacted Applies to employers with 500 employees nationally

Excludes employers of first responders (as defined in the Ordinance) or healthcare providers (as defined under CFRA)

Applies to employers with either:

  1. 500 or more employees within the City of Los Angeles; or
  2.   2,000 or more employees within the United States*

Excludes:

  • Employers of emergency personnel as defined in the April 1 ‘Safer At Home’ Emergency Order
  • Healthcare providers as defined under CFRA or individuals, including contract workers, working at a health facility licensed under HSC §1250;
  • Global parcel delivery services
  • Businesses that started in or relocated to the city between 9/4/19 and 3/4/20 (exceptions apply for construction companies and film producers)
  • Businesses closed for a period of 14 days due to official COVID-19 emergency order, or that provided at least 14 days of leave*
Eligible Employees Employed by the same employer from February 3, 2020, through March 4, 2020, and perform any work within the geographical boundaries of Los Angeles

Employer must be able to prove an individual is an independent contractor and not an employee

No change; however, reference to independent contractors is not included.*

Excludes “employees of government agencies working within the course and scope of their public service employment”

Collective Bargaining Agreements The Ordinance’s provisions may be waived in a CBA, but only if the waiver is expressly stated and the agreement is bilaterally modified. A CBA in place on the effective date of the Order may supersede the Order’s provisions if the CBA includes COVID-19-related sick leave provisions.  If it does not, the employer must comply with the Order’s requirements unless and until the CBA is amended to expressly waive them. Requirements may also be (expressly) waived upon the CBA’s expiration or renegotiation.
Leave Entitlement Employees who work 40h/week or are classified as Full-Time: 80 hours

Employees who work less than 40h/week and not classified as Full-Time: average two-week pay between February 3 and March 4, 2020

Employees of joint Employers are only entitled to the total aggregate amount of leave specified for Employees of one Employer.

With the exception of FFCRA, leave under Supplemental Paid Sick Leave is in addition to other leave available to the employee.

No change*, though Order specifies “employee is unable to work or telework”
Pay Calculated based on average 2-week pay between February 3 and March 4, 2020

Maximum $511/day, $5,110 total

No change*
Employer Offset An employer’s obligation to provide 80 hours of Supplemental Paid Sick Leave is reduced for every hour an employer allowed an employee to take paid leave in an amount equal to or greater than the ordinance’s requirements, not including previously accrued hours, on or after March 4, 2020, for the reasons outlined below. An employer’s obligation to provide 80 hours of Supplemental Paid Sick Leave is reduced for every hour an employer allowed an employee to take paid leave in an amount equal to or greater than the ordinance’s requirements, not including previously accrued hours, on or after March 4, 2020, for the reasons outlined below or in response to an employee’s ability to work due to COVID-19.*

In addition: If an Employer has a paid leave or paid time off policy that provides a minimum of 160 hours of paid leave annually, the Employer is exempt from any obligation to provide supplemental leave pursuant to this Order for the Employee that received the more generous paid leave.*

Reasons for Leave
  1. Because a public official or healthcare provider recommends the Employee to quarantine to prevent the spread of COVID-19
  2. Employee is least 65 years old or has an underlying health condition
  3. To care for a family member who is not sick but who has been advised to quarantine
  4. To care for a child under 18 or other family member whose school or care provider has closed in accordance with a public official’s recommendation
  1. Due to Employee’s COVID-19 infection or because a public official or healthcare provider recommends the Employee to quarantine to prevent the spread of COVID-19
  2. No change
  3. No change
  4. Applies only if the employee is unable to secure a “reasonable alternative” caregiver
Documentation Employer may not require documentation No change*
Enforcement Legal action for violation of the Ordinance may result in an award requiring an employee’s reinstatement, back pay or “other legal or equitable relief”, including payment of legal fees No change

* The information above reflects text appearing in the original Ordinance and in the mayor’s Executive Order; additional information and guidance may be found in the Rules and Regulations document posted by the Office of Wage Standards (OWS) on April 11.

San Jose, CA COVID-19 Paid Sick Leave

San Jose’s City Council unanimously adopted the COVID-19 Paid Sick Leave Ordinance (Ordinance No. 30390) effective April 7, 2020.

Eligible employees are those who have worked at least two hours within the boundaries of San Jose and must leave their homes to perform “essential work.” “Essential” work activities and services were originally defined in a March 16 Order issued by the Santa Clara County Public Health Officer announcing the closure of non-essential services, which was superseded by a March 31 Order (see #13).

    • Employee status will be determined in accordance with CLC §2750.3, and applicability to workers in the construction industry will be determined under CLC §245.5(a)(2).
    • Excludes employees who are able to work from home.

Covered Employers are:

      • as defined under the city’s Minimum Wage Ordinance (Municipal Code §4.100.030); and 
      • not subject “in whole or in part” to the paid sick leave requirements under the Families First Coronavirus Response Act (FFCRA) (i.e., the San Jose Ordinance applies to employers with 500 or more employees, as well as to employers with fewer than 50 employees who may qualify for FFCRA exemption).
    • Excludes employers who, as of April 7, provide their employees with some combination of paid personal leave at least equivalent to leave required by the Ordinance.  If leave provided by an employer is in some way less than what the Ordinance requires, the employer is required to make up the difference.
    • Employers operating hospitals may delay compliance with the Ordinance for two weeks following enactment on April 7.

Leave Entitlement:

    • Full-Time employees are eligible for 80 hours of sick leave benefit.
    • Part-Time employees are eligible for sick leave hours equal to the number of hours they work on average over a two-week period.
        • The amount of paid sick leave for Part-Time employees is calculated based on the average number of hours the employee worked per day during the 6 months prior to April 7, 2020. If the employee has been employed for less than 6 months, the calculation should be based on the average hours the employee was expected to work at the time of hire.
    • Unused sick time will not carry over from one year to the next, will not be paid out under any circumstances and will not be available after the sunset of the Ordinance.

Reasons for Use include:

    • The employee is subject by a COVID-19 quarantine order issued by a local official, or is caring for someone who is under such quarantine;
    • The employee has been advised by a healthcare professional to self-quarantine due to COVID-19 or is caring for someone who has been so advised;
    • The employee is experiencing symptoms of COVID-19 and is seeking medical diagnosis;
    • The employee is caring for a minor child whose school or care provider is closed due to COVID-19.

Pay:

      • An employee using sick leave for his or her own needs will be paid his or her full regular rate of pay up to $511 per day, not to exceed $5,110.
      • An employee using sick leave to care for another person will be paid 2/3 his or her regular rate of pay up to $200 per day, not to exceed $2,000.
    • The city’s Office of Equality Assurance is authorized to establish, implement and enforce the Ordinance’s requirements, which may include a notice posting requirement.
    • The Ordinance does not provide economic relief for or tax credits to employers who are obligated to provide leave.
    • The Ordinance is set to sunset on December 31, 2020.

Note: San Francisco’s Board of Supervisors passed a Public Health Emergency Leave Ordinance (“PHELO”) similar to the Los Angeles and San Jose ordinances, which has been submitted to the mayor for approval and signature. Oakland may also enact emergency paid sick leave requirements. We will continue to monitor and provide updates.

District of Columbia COVID-19 Response Supplemental Emergency Amendment Act

On April 10, 2020, Washington D.C. enacted the COVID-19 Response Supplemental Emergency Amendment Act (D.C. Act 23-886), effective retroactively to March 11. While the provisions of the Act cover a number of topics, the information here is limited to its impact on the District’s Accrued Sick and Safe Leave Act (ASSLA).

The Act temporarily amends ASSLA by creating “declared emergency paid leave” for reasons associated with the COVID-19 emergency*, via the addition of §32-531.02a

During the COVID-19 emergency, employers with 50-499 employees** that are not healthcare providers (as defined) must provide declared emergency paid leave for an absence from work for any reason covered under the Families First Coronavirus Response Act (FFCRA)s Emergency Paid Sick Leave Act (EPSLA):

    1. the employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
    2. the employee has been advised by a healthcare provider to self-quarantine due to concerns related to COVID-19;
    3. the employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis;
    4. the employee is caring for an individual who is subject to an order as described in #1 or has been advised as described in #2;
    5.  the employee is caring for a son or daughter of such employee if the school or place of care of the son or daughter has been closed, or the child care provider of such son or daughter is unavailable, due to COVID-19 precautions;
    6. the employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

*Emergencies declared via Mayor’s Orders 2020-045 and 2020-046 on March 11, including any extensions.

** The Act does not specify if this number is overall or only employees in the District; future regulations may clarify.

 Employees who have been employed at least 15 days prior to the request for leave are eligible.

Leave Entitlement:

        • Full-Time employees: 80 hours
        • Part-Time employees: the usual number of hours the employee works in a two-week period
        • An employer may require that an employee exhaust any available leave under federal or District law or the employer’s own policies prior to using declared emergency paid leave.
        • If the employee exhausts declared emergency paid leave and informs the employer of the continued need to be absent from work, the employer must inform the employee of other paid or unpaid leave available by law or under the employer’s policies.

Pay: Employees must be compensated at their regular rate of pay. If the employee does not have a regular rate of pay, his or her rate should be determined by dividing the employee’s total gross earnings (including tips, commissions, piecework, or other earnings) during his or her most recent two-week period by the number of hours worked during that period. The employee’s rate may be no less than the District’s minimum wage.

Notification: Employers may not require more than 48 hours’ notice of the need for leave; in an emergency, the employer must accept “reasonable” notice.

Certification: Employers may request “reasonable” certification for absences of three or more consecutive working days – however, employers that do not contribute towards an employee’s health insurance premiums may not require certification for absence under declared emergency paid leave. 

        • When certification is requested, the employee is not required to provide it until one week after returning to work. (see §32-531.04(a-1))

Recordkeeping requirements follow existing requirements under ASSLA: record of hours worked and leave taken must be retained for three years.

The amendment expires in 90 days (July 9, 2020), unless extended.

Michigan COVID-19 Leave and Job Protection

On April 3 the governor of Michigan issued Executive Order 2020-36, requiring employers to provide leave and job protection for employees exposed to or diagnosed with COVID-19.

Employees who test positive for COVID-19, or who display one or more of the principal symptoms of COVID-19, should remain in their home or place of residence, even if they are otherwise permitted to leave under Executive Order 2020-21 or any executive order that may follow it (note: on April 9 Executive Order 2020-21 was rescinded and replaced by Executive Order 2020-42), until:

    • Three days have passed since their symptoms have resolved, and
    • Seven days have passed since symptoms first appeared or since the test yielding a positive result was administered.

These requirements cease to apply to anyone who, after showing symptoms, receives a negative COVID-19 test.

Employees who have been in close contact with someone who tests positive for COVID-19 are instructed to remain home until 14 days have passed since contact, or the symptomatic person receives a negative COVID-19 test. 

    • This excludes healthcare professionals, health facility workers, first responders, child protective services employees, employees of child caring institutions, and correctional facility workers,

Employers are prohibited from terminating or otherwise penalizing employees who stay home from work under the terms of the Order, unless the employee returns to work before the time periods specified above have lapsed.

Employers must treat employees as if they were taking leave under Michigan’s Paid Medical Leave Act (PMLA) (MCL §408.961 et seq). Leave must be allowed for the duration of the employee’s need as defined under the Order. The employer may decrement the employee’s PMLA hours or, if the employee has exhausted time, provide unpaid leave. (Note that the Order applies to all employers, even those with fewer than 50 employees who are not required to provide accrued time under PMLA.)

Nothing in the Order prohibits an employer from disciplining or discharging an employee who is allowed to return to work under the Order but refuses to do so.

The Order is in effect until the end of the declared states of emergency and disaster.

Seattle, WA Paid Sick and Safe Time Emergency Rule

On April 8, 2020, Seattle’s Office of Labor Standards (OLS) issued an Emergency Rule (SHRR 70-080) indicating that employers may not require a doctor’s note or other healthcare provider certification during the COVID-19 outbreak, citing that it poses an “unreasonable burden” on employees. Employers are instructed to accept alternative methods of verification such as an oral or written statement from the employee, or documentation from other individuals such as service providers, social workers, case managers or legal advocates stating that, to their knowledge, the employee is using PSST for a covered purpose.  The Rule is in effect through June 7, 2020.

More COVID-19 information and resources may be found on MMA’s Coronavirus Outbreak Resource Page. 

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved.

Statutory Update – Federal and State COVID-19 Legislation Updates, MA PFML, Dallas Paid Sick Time

April 8, 2020

Federal Legislation

DOL Issues Temporary Rules for Paid Leave under the Families First Coronavirus Response Act (FFCRA)

On April 6, 2020, the Department of Labor’s (DOL) Wage and Hour Division (WHD) published rules to provide direction for administering the Emergency Paid Sick Leave Act (EPSLA) and Emergency Family and Medical Leave Expansion Act (EFMLEA) contained in the Families First Coronavirus Response Act (FFCRA). These leave requirements apply to employers with fewer than 500 employees and are effective April 1, 2020.

The following includes guidance provided by the WHD temporary rule (FFCRA rules will ultimately appear as Part 826 of CFR Title 29) and the DOL FAQ (#60-79 are new), and supplements information provided by MMA ADL in previous Statutory Update releases on March 20, March 25 and March 30:

Defined terms:

  • “Subject to quarantine or isolation order”: Quarantine, isolation, containment, shelter-in-place, or stay-at-home orders issued by any Federal, State, or local government authority that cause an employee (or category of employees such as by age range or medical condition) to be unable to work even though his or her employer has work that the employee could otherwise perform.
  • “Telework”: Work an employer permits or allows an employee to perform while the employee is at home or at a location other than his or her normal workplace. An employee is able to telework if his or her employer has work available, the employer permits the employee to work from the employee’s location, and there are no extenuating circumstances (such as serious COVID-19 symptoms) that prevent the employee from performing that work. Telework may be performed during normal hours or at other times agreed by the Employer and Employee. Telework is work for which wages must be paid as required by applicable law and is not compensated as paid leave under the EPSLA or the EFMLEA.
  •  “Substantially similar condition” for use of Emergency Paid Sick Leave has not yet been defined (DOL FAQ #73)

Employers should calculate business size each time an employee needs to take leave, which means availability of Emergency Paid Sick Leave (EPSL) or Emergency Family and Medical Leave (EFML) could vary from one week to another.  Per the example in the temporary rules:

If an employer has 450 employees on April 20, 2020, and an employee is unable to work starting on that date because a health care provider has advised that employee to self-quarantine because of concerns related to COVID-19, the employer must provide paid sick leave to that employee. If, however, the employer hires 75 new employees between April 21, 2020, and August 3, 2020, such that the employer employs 525 employees as of August 3, 2020, the employer would not be required to provide paid sick leave to a different employee who is unable to work for the same reason beginning on August 3, 2020.

  • An employer’s count should include all employees working in the United States, including full-time and part-time employees, employees on leave, temporary employees who are jointly employed by the employer and another employer, and day laborers supplied by a temporary placement agency.  Independent contractors and employees who are laid off or furloughed need not be counted. Businesses comprised of multiple entities are instructed to follow FLSA joint employer rules and the FMLA integrated employer test in determining size. (DOL FAQ #2)
  • Small employers with fewer than 50 employees may qualify for an exemption from the requirement to provide paid leave due to school, place of care, or child care provider closings or unavailability, if the leave payments would jeopardize the viability of their business as a going concern. Employers electing this exemption should document their determination based on the criteria set forth in the rules and retain these records. Note that display/distribution of the mandatory Employee Rights Notice is still required. (DOL FAQ #4, #58-59; rules §826.40)

Employer notice to employees:

  • The Employee Rights Notice must be displayed by April 1, 2020, in a conspicuous place accessible to all employees. Per the posted FAQ, the notice may be distributed to all current employees working remotely via mail or email and/or posted on a website available to all employees. Although the FFCRA does not require employers to provide a translated notice to employees, the Department has issued the notice in other languages.
  • Notices for Emergency Family and Medical Leave: FFCRA does not require employers to respond to employees who request EFMLEA leave with “traditional FMLA” notices of eligibility, rights and responsibilities, or written designations that EFML leave use counts against employees’ FMLA leave allowances. However, an employer that has established practices for providing individual employees with specific notices compliant with the FMLA regulatory guidance (29 CFR 825.300) may prefer to apply its existing practices to EFML users.

Employee eligibility:

  • EPSL: All employees, effective immediately
  • EFML: Employees on payroll for the 30 calendar days preceding leave.  The CARES Act expanded this to include rehired employees who were laid off March 1, 2020, or later and had worked for the employer for at least 30 of the 60 calendar days prior to the layoff. (Sec. 3605)
  • Exceptions:
      • An employer may exclude health care providers and emergency responders from EPSL and EFML eligibility (see definitions in rules §826.30 and DOL FAQ #56-57). However, an employer’s exercise of this option does not authorize an employer to prevent an employee who is a health care provider or emergency responder from taking earned or accrued leave in accordance with established employer policies.
      • Employees subject to reduced hours, worksite closure or furlough are not entitled to EPSL or EFML, but may be eligible for unemployment benefits. If an employer later reopens the worksite, employees would be eligible for FFCRA paid sick leave or paid FMLA as warranted. (DOL FAQ #23-28 #77)
      • Federal employees covered under FMLA Title II are also excluded. In addition, under the CARES Act, the Director of the Office of Management and Budget (OMB) has the authority to exclude certain Federal employees from EPSL and EFML.

Use:

  • An employee may take EPSL if he or she becomes ill with COVID-19 symptoms and needs to seek a medical diagnosis, or if a health care provider directs him or her to self-quarantine because the provider believes the employee may have COVID-19 or is particularly vulnerable to COVID-19. EPSL is not available for an employee who decides to self-quarantine for an illness without medical advice, even if symptoms are present. (DOL FAQ #61-62)
  • EPSL may be taken for an employee to care for an individual who, as a result of a quarantine or isolation order, is unable to care for him- or herself, and providing that care prevents the employee from working (or teleworking). An “individual” is described as an immediate family member, someone who regularly resides in the employee’s home, or someone whose relationship with the employee creates an expectation of care (DOL FAQ #63-66, #71). EFML is available only to care for the employee’s son or daughter (#72).
  • ESPL and EFML may be taken intermittently under certain circumstances (see DOL FAQ #20-22; rules §826.50)
  • Leave for more than one parent or guardian: Generally speaking, an employee should not need to take EPSL or EFML if a co-parent, co-guardian or the child’s usual care provider is available. (DOL FAQ #69; see also IRS FAQ #44)
  • Employees receiving workers’ compensation or state-provided temporary disability benefits are generally not eligible for EPSL or EFML. (DOL FAQ #76)

Interplay with Other Leave Types (note: some changes were made to DOL FAQ #31-33 from the previous version; see also #77):

  • Leave under EPSLA is in addition to, and not a substitute for, other sources of leave which the employee had already accrued, was already entitled to, or had already used, before the EPSLA became operational on April 1, 2020. Therefore, neither eligibility for, nor use of, EPSL may count against an employee’s balance or accrual of any other source or type of leave.
  • An employer may not deny EPSL or EFML on the grounds that the employee has already taken another type of leave or taken leave from another source, including leave taken for reasons related to COVID-19 (this does not apply to the 12-week maximum under FMLA, as leave under EFML is included in that maximum).
  • Section 5107(1) of the FFCRA law text states that, “Nothing in this Act shall be construed to in any way diminish the rights or benefits that an employee is entitled to under any (A) other Federal, State or Local law, (B) collective bargaining agreement, or (C) existing employer policy.” Existing employer policy as it is used here is defined in the temporary rules as a COVID-19-related paid leave that an employer may have voluntarily provided prior to April 1, 2020, which offered more paid leave than under the employer’s standard or current policies. FFCRA still requires these employers to provide the entirety of the paid leave to which its employees are eligible under EPSLA and EFMLEA.
      • However, an employer may prospectively terminate such a voluntary additional paid leave offering as of April 1, 2020, or thereafter, as long as the employer had not already amended its leave policy to reflect the voluntary offering. This means that the employer must pay employees for leave already taken under such an offering before it is terminated, but the employer need not continue the offering in light of FFCRA taking effect.
  • An employer may not require, coerce, or unduly influence an employee to use unpaid or paid leave before taking EPSL or EFML.
  • Supplementing EPSL or EFML benefits:
      • An employee may choose to use EPSL prior to using any other type of paid leave to which he or she is entitled under any other Federal, State, or local law, collective bargaining agreement, or employer policy that existed prior to April 1, 2020. An employer may allow, but not require, an employee to supplement EPSL with company paid leave, up to the employee’s regular earnings.*
      • For EFML:
        • During the first two weeks of unpaid EFML, the employee can elect to use, or the employer can require the employee to use, paid time available through an employer’s policy. If the employee elects to use EPSL during this period he or she may choose to supplement EPSL pay with company paid leave, up to the his or her regular earnings.*
        • For the remaining EFML weeks, leave the employee has available under the employer’s policies to care for a child, such as vacation, personal leave or paid time off, may be used concurrently with EFML to supplement the EFML benefit, if the employee and the employer agree. If EFML is used concurrently with another source of paid leave, the employer must pay the employee the full amount to which the employee is entitled under the employer’s preexisting policy for the period of leave taken.*
        • * Any tax credit entitlement is limited to FFCRA benefit maximums.
  • Employees have no right or entitlement to EPSL or EFML for any unpaid or partially paid leave taken before April 1, 2020.

Documentation:

  • Employees must provide a signed statement requesting leave, which should include the employee’s name, requested leave dates, the COVID-19 qualifying reason for leave, and a statement that the employee is unable to work or telework due to the COVID-19 reason.
      • Supporting documentation must also be provided; this documentation may be in the form of:
        • The name of the government entity that issued the quarantine or isolation order to which the employee or the individual for which the employee is caring is subject.
        • The name of the health care provider who advised the employee or the individual for which the employee is caring to self-quarantine for COVID-19 related reasons.
        • For leave needed due to closure of school or place of care, documentation should include the child’s name, the name of the facility that closed or the care provider that became unavailable due to COVID-19 reasons, and a statement that no other suitable person is available to care for the child during the period of requested leave. Additional information may be needed to substantiate leave to care for a child over age 14. (IRS FAQ #44)
        • For leave taken under the Family and Medical Leave Act of 1993 (i.e., “traditional” FMLA) for an employee’s own or a covered family member’s serious health condition related to COVID-19, the normal FMLA certification requirements still apply.
  • Documentation, including record of oral statements and criteria for denial under the small business exception, must be retained for a period of four years.
      • Guidance for employers as to what documentation should be retained in order to qualify for tax credit can be found under #4 of the IRS FAQ.

Employees who take EPSL or EFML are entitled to continued coverage under the employer’s group health plan on the same terms as if such leave was not taken, provided plan contributions are maintained.

  • For unpaid leave, or where EPSL or EFML pay is insufficient to cover the employee’s contributions, employers are directed to FMLA regulations (29 CFR 825.210(c)).
  • If an employee chooses not to retain group health plan coverage during EPSL or EFML, the employee is entitled upon returning from leave to be reinstated in coverage on the same terms as prior to taking the leave, including family member coverage.

Job ProtectionIn most instances, an employee is entitled to be restored to the same or an equivalent position upon return from EPSL or EFML in the same manner that he or she would be returned to work after FMLA leave.  Note that this requirement does not apply in the event of an employment action, such as layoff, that would have affected the employee regardless of whether the leave was taken: the employer must be able to demonstrate that the employee would have been laid off even if he or she had not taken leave. Additional exceptions may apply for “key” employees and for employers with fewer than 25 employees. (DOL FAQ #43).

Enforcement:

  • The DOL will not bring enforcement actions against any employer for violations of the Act occurring within 30 days of the FFCRA’s enactment (i.e., March 18 through April 17, 2020), provided that the employer has made reasonable, good faith efforts to comply with the Act. After April 17, 2020, the DOL will fully enforce violations of the Act, as appropriate and consistent with the law. (DOL FAQ #78-79)
  • The FMLA’s general prohibitions on interference with rights and discrimination (29 U.S.C. 2615), as well as the FMLA’s enforcement provisions (29 U.S.C. 2617), apply for purposes of the EFMLEA, except that an employee’s right to file a lawsuit directly against an employer does not extend to employers who were not previously covered by the FMLA

Employers are directed to the IRS for information on claiming tax credits for EPSL and EFML:

Additional Resources

FFCRA

Department of Labor

Americans with Disabilities Act (ADA/ADAAA)

Equal Employment Opportunity Commission (EEOC)

Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and Unemployment Insurance

Department of Labor (DOL)

State Legislation

State Disability and/or Paid Family Leave Program Responses to COVID-19

Updates from our previous version are in bold type:

 

Program / Change

Helpful Links

California State Disability Insurance (SDI):

  • Benefits may be available with medical provider’s certification or written order from a public official
  • 1-week waiting period waived

Paid Family Leave (PFL): Benefits may be available with medical provider’s certification or written order from a public official

Paid Sick Leave: self-quarantine may be considered “preventive care”

EDD – COVID-19 information and state programs

EDD – COVID-19 FAQ

DILR Guidance on CA Paid Sick Leave

Summary of Programs for Workers

Hawaii Temporary Disability Insurance: no changes to law, however, benefits may be available during quarantine with healthcare provider certification COVID-19: Labor Benefits Fact Sheet

TDI FAQ

Hawaii Department of Labor

Hawaii Employers Council

New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI): The definition of “serious health condition” has been expanded to include reasons associated with communicable disease; the one week waiting period for TDI is waived for leave for this reason.*

Earned Sick Leave: law as written enables employees to take time off from work for public health emergencies; this was expanded to specify reasons associated with a state of emergency declaration.*

NJ DOL – State Benefits and COVID-19

NJ State Benefit Scenarios

New York Disability Benefits (DBL): no changes to the law itself, however some benefit may be available in coordination with Emergency Paid Sick Leave (see our March 20 release for details)

Paid Family Leave (PFL): The definition of “serious health condition” has been expanded to include a family member’s COVID-19 diagnosis.**

Emergency Paid Sick Leave: leave for quarantined workers effective March 16; separate accrued paid sick leave requirements begin later this year***

Attorney General’s Guidance

New Paid Leave for COVID-19

Puerto Rico Temporary Disability (SINOT): no announced changes

Paid Sick Leave:

  • If enacted as currently written, House Bill 2428 (available only in Spanish) will amend the current paid sick leave law (Law 180-1998) to provide non-exempt employees five days of emergency paid sick leave after other leaves have been exhausted.
  • On March 13 Puerto Rico’s Department of Labor issued guidance that included instruction that employees be entitled to use their sick leave for any true need associated with COVID-19 (Opinion 2020-01, available only in Spanish).
Rhode Island Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI): 7-day waiting period waived; self-attestation accepted temporarily for individuals under quarantine

Sick and Safe Leave: no changes; law as written enables employees to take time off from work to care for themselves or family members affected by COVID-19

Workplace Fact Sheet
Washington Paid Family and Medical Leave (PFML): no COVID-19 changes

Paid Sick Leave: no changes; law as written enables employees to take time off from work for public health emergencies

ESD – COVID-19 Information for Workers and Businesses

WA PFML COVID-19 FAQ

Paid Sick Leave COVID-19 FAQ

WA State Benefit Scenarios

* As originally presented in our March 30 release, these changes are permanent as a result of Senate Bill 2304 (P.L.2020, c.17), signed by the governor of New Jersey on March 25, 2020. The law also similarly amends the definition of “serious health condition” under the New Jersey Family Leave Act.

** Emergency amendment to the NY PFL law announced by NY Workers Compensation Board (WCB) on March 27, 2020, which expires in 90 days (approximately June 25, unless extended). This is separate from Emergency Paid Sick Leave and “fast tracking” to NY DBL and PFL benefits covered in our March 20 release.

*** NY WCB has clarified that the breakdown of employers by size for Emergency Paid Sick Leave obligations is based on an employer’s national employee count. Additional note: Emergency Paid Sick Leave was ultimately passed as S8091, with no changes in provisions. Comprehensive paid sick leave was passed April 3 as part of the state budget (S7506); the law is effective September 30 with leave entitlement beginning January 1, 2021. See our March 20 and March 25 releases for more details.

Los Angeles, CA COVID-19 Supplemental Paid Sick Leave

*Please see updated information in our April 17 release*

On April 7, 2020 the mayor of Los Angeles approved “COVID-19 Supplemental Paid Sick Leave” (Ordinance No. 186590), which requires employers to provide paid sick leave to employees working in Los Angeles. 

The provisions of the Ordinance are as follows:

  • Effective Date: April 10, 2020, until December 31, 2020
  • Applies to:
      • Employers with 500 or more employees nationally (i.e., employers not impacted by FFCRA) who have employees performing work in Los Angeles
          • Employers of a first responder (as defined under the ordinance) or a health care professional (as defined under the California Family Rights Act) are exempt.
      • Employees who have been employed by the same employer from February 3, 2020, through March 4, 2020, and perform any work within the geographical boundaries of Los Angeles
          • Independent contractors are excluded, but the employer must be able to demonstrate that an individual is an independent contractor.
          • Will not apply to employees covered by a Collective Bargaining Agreement if the CBA expressly waives its provisions and is bilaterally modified.
  • Leave Entitlement
      • Employees working at least 40 hours per week or classified as full-time by the employer are eligible for 80 hours of Supplemental Paid Sick Leave.  Leave is calculated based on the employee’s average two-week pay between February 3 and March 4, 2020.
      • Employees working less than 40 hours per week and not classified as full-time by the employer are eligible for Supplemental Paid Sick Leave in an amount no greater than the employee’s average two-week pay between February 3 and March 4, 2020.
      • The maximum amount payable is $511 per day, $5,110 in total.
          • Employees of joint employers are limited to the total aggregate amount of leave specified for one employer.

Important Note: Supplemental Paid Sick Leave is in addition to paid sick leave required by any other law.  However, an employer’s obligation to provide Supplemental Paid Sick Leave is reduced for every hour an employer allowed an employee to take paid leave in an amount equal to or greater than the ordinance’s requirements, not including previously accrued hours, on or after March 4, 2020, for any of the reasons listed below.

  • Reasons for Use: An employee may take leave:
      • Under recommendation by a public official or healthcare provider to prevent the spread of COVID-19
      • If he or she is at least 65 years old or has a health condition such as heart disease, asthma, lung disease, kidney disease or a weakened immune system
      • To care for a family member who is not sick but who has been advised by a public official or healthcare provider to quarantine or isolate
      • To provide care for a family member whose school or care provider has closed in accordance with a public official’s recommendation.  Care providers include senior care facilities. Eligible children are those under the age of 18.
  • Request for Supplemental Paid Sick Leave may be given verbally or in writing.  Employers may not require documentation of the need for this leave; however, it is recommended that employers maintain records of use.
  • Legal action for violation of the Ordinance may result in an award requiring an employee’s reinstatement, back pay or “other legal or equitable relief”.
  • While the LA Ordinance shares some similarities with requirements for businesses with fewer than 500 employees under FFCRA, it should be noted that it does not provide economic relief or tax credits to employers who are obligated to provide leave.
Colorado Health Emergency Leave with Pay

MMA ADL previously reported on the issuance of Colorado’s Health Emergency Leave with Pay (“Colorado HELP”), which requires employers in certain industries to provide paid sick leave to their employees. The Colorado Department of Labor and Employment published updates to the rules, adding retail stores that sell groceries and food and beverage manufacturers as covered industries, effective on March 26 and April 3, respectively. The March 26 changes also expand eligibility from only employees with flu-like symptoms who are awaiting COVID-19 testing, but also those who are under instruction from a health care provider to quarantine or isolate due to a risk of having COVID-19. The rule amendments are not to be applied retroactively.

In addition, the duration of Colorado HELP was updated to 30 days beginning April 3, 2020 (expiring on or around May 2), but could be extended again if the State of Emergency continues past that date.

New Jersey Passes Temporary Job Protection Act

On March 20, 2020, the governor of New Jersey signed A3848 which, during the Public Health Emergency and State of Emergency declared on March 9, 2020, prohibits employers from terminating or otherwise penalizing an employee who takes time off of work because he or she has or is likely to have an infectious disease, as certified by a healthcare provider. Following the certification period, the employee must be reinstated to his or her position held prior to leave with no reduction in status, seniority, pay or benefits.

More information and resources may be found on MMA’s Coronavirus Outbreak Resource Page.

Other Leave News

Massachusetts Paid Family and Medical Leave (PFML)

On April 3, 2020, the Massachusetts Department of Insurance (DOI) released Notice 2020-A, which provides guidance to insurance carriers developing insured products compliant with MA PFML private plan requirements. Carriers are required to file their product(s) with the DOI by June 3, 2020.

The DOI’s Notice also includes a policy template. The template, along with the DOI’s policy checklist, are intended to help ensure the carriers’ submitted policies are compliant. These pieces may also prove useful to employers who plan to self-insure their private plan in writing their policy document.

Employers who filed a Declaration of Insurance along with their private plan application were instructed at the time to submit a policy form to the Department of Family and Medical Leave (DFML) once available from their insurance carrier. The DOI’s Notice indicates that, rather than having the employer submit the policy form prior to their exemption renewal, the policy form number will be requested at the time of renewal. The DFML will update its website to outline this procedure.

Dallas, TX Paid Sick Time Ordinance Postponed

Dallas’ Earned Paid Sick Time Ordinance, which went into effect on August 1, 2019 but was not set to be enforced until April 1, 2020, was halted via court injunction on March 30, 2020. The ordinance has been postponed until further notice, as reflected on the city’s Paid Sick Time webpage. With this ruling, Dallas joins Austin and San Antonio as Texas cities with paid sick leave currently “on hold”. Employers are encouraged to seek legal counsel before reversing any policy put in place to comply with the Dallas ordinance. 

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved.

Statutory Update – Developments in Federal and State COVID-19 Legislation, WA PFML Amendment

March 30, 2020

Federal Legislation

Guidance on Paid Leave under the Families First Coronavirus Response Act (FFCRA)

The Department of Labor (DOL) released additional guidance around the emergency paid sick leave and expanded FMLA benefits required of employers with fewer than 500 employees under FFCRA effective April 1, 2020. The newest guidance falls under #15-59 of the DOL’s posted Q&A (MMA ADL reported on the release of #1-14 on March 25) and includes the following:

  • Employees are required to provide their employers with documentation supporting the need for paid sick and/or expanded FMLA leave.  Employers who intend to claim a tax credit under FFCRA should retain this documentation. (#15-16)
  • Inability to work and intermittent leave: (#17-22)
      • An employee will be considered unable to work if one of the COVID-19 qualifying reasons outlined under FFCRA prevents him or her from being able to perform work under normal circumstances at the employee’s regular worksite or via telework, and for the employee’s normal number of hours.
      •  Employees who are teleworking: An employer and an employee may agree on intermittent FFCRA paid sick or expanded FMLA leave if the employee is unable to telework his or her normal number of hours due to a COVID-19 qualifying reason. The increment is as agreed upon by the employer and the employee.
      • Employees who are not teleworking (i.e., working at usual worksite):
        • Paid sick leave must be taken in full day increments. Note, however, that once FFCRA paid sick leave for official quarantine order, employee’s own illness, or care for an ill family member begins, leave must continue until time is exhausted or there is no longer a qualifying reason; days used to stay home with a child whose school or place of care has closed need not be consecutive.
        • An employee who no longer has a qualifying reason for taking FFCRA paid sick leave before such leave is exhausted may take any remaining leave at a later time if another qualifying reason occurs, up until December 31, 2020.
        • Expanded FMLA may be taken intermittently as agreed upon between the employee and his or her employer.
  • Employees subject to reduced hours, worksite closure or furlough are not entitled to FFCRA paid sick leave or expanded FMLA, but may be eligible for unemployment benefits. If an employer later reopens, employees would be eligible for FFCRA paid sick leave or paid FMLA as warranted. (#23-28)
  • FFCRA paid sick leave and expanded FMLA benefits may not be received at the same time as unemployment benefits. Employees are encouraged to contact state unemployment agencies with specific questions regarding eligibility. (#29)
  • Employers must continue health benefits for employees on FFCRA paid sick or expanded FMLA leave; employees may still be required to remit contributions. (#30)
      • Health plan requirements for eligibility, including any requirement to complete a waiting period, would apply in the same way as if an employee continued to work, including that the days an employee is on FFCRA paid sick leave count towards completion of the waiting period. (#51)
  • Other leave entitlement:
      • Leave taken under FFCRA paid sick leave and/or expanded FMLA cannot be taken simultaneously with a company’s leave policy.  Employers may allow, but not require, employees to supplement the amount an employee receives from FFCRA paid sick leave or expanded FMLA, up to normal earnings, with an existing company leave policy. (#31-34)
      • FFCRA paid sick leave is in addition to other leave provided under Federal, State, or local law, an applicable collective bargaining agreement, or an employer’s existing company policy. (#46)
  • Employers that are part of a multiemployer collective bargaining agreement may satisfy FFCRA paid sick leave and expanded FMLA obligations by making contributions to a multiemployer fund, plan, or other program in accordance with existing collective bargaining obligations. (#35-37)
  • Eligible employees are those as defined under the Fair Labor Standards Act (FLSA).  Eligible employees are entitled to FFCRA paid sick leave regardless of length of employment, however only those who have been employed for 30 days or more at the time of leave are eligible for expanded FMLA. (#38)
      • For purposes of FFCRA paid sick leave, a full-time employee is one who is normally scheduled to work 40 hours or more per week; there is no distinction between full-time and part-time employees under expanded FMLA. (#48-49; see also #5-6)
      • Public sector employees are generally eligible for FFCRA paid sick and expanded FMLA leave; some exceptions for federal employees exist. (#52-54)
      • Employers may exclude health care providers and emergency responders on a case-by-case basis (#38, #56-57)
  • Certain small businesses may be exempt from providing paid leave for the purpose of caring for a child whose school or place of care has closed if the leave would jeopardize the viability of the company. (#4, #58-59)
  • Under FFCRA, the definition of a child will include an adult son or daughter (i.e., one who is 18 years of age or older), who (1) has a mental or physical disability, and (2) is incapable of self-care because of that disability. (#40)
  • Employees returning from FFCRA paid sick leave or expanded FMLA leave are entitled to be restored to the same or equivalent position (there are exceptions for “key” employees and for smaller employers).  Leave taken under FFCRA does not protect employees from employment action that may have occurred regardless of leave, such as layoff. (#43)
  • Leave taken under expanded FMLA is included in the 12-week entitlement of an otherwise-FMLA-eligible employee, not in addition to. (#44-45)
      • Note: FFCRA paid sick leave is not a form of FMLA leave and therefore does not count toward the FMLA maximum entitlement of 12 workweeks in a 12-month period. However, if an employee takes paid sick leave concurrently with the first two weeks of expanded FMLA, which would otherwise be unpaid, then those two weeks do count towards the 12 workweeks.
  • A health care provider, as used to determine individuals whose advice to self-quarantine due to concerns related to COVID-19 can be relied on as a qualifying reason for paid sick leave, means a licensed doctor of medicine, nurse practitioner, or other health care provider permitted to issue a certification for purposes of the FMLA. (#55)
Additional Resources

The DOL has posted additional information on its COVID-19 and the American Workplace webpage, including:

    • The Employee Rights Notice, which must be displayed by April 1, 2020, in a conspicuous place accessible to all employees. Per the posted FAQ the notice may be distributed to all current employees working remotely via mail or email and/or posted on a website available to all employees.
    • FFCRA Fact Sheets for employees and employers
    • Q&A addressing COVID-19, FLSA and FMLA

With regard to the Americans with Disabilities Act (ADA), the Equal Employment Opportunity Commission (EEOC) has posted a recorded webinar supplementing previously released information: What You Should Know About the ADA, the Rehabilitation Act, and COVID-19 and Pandemic Preparedness in the Workplace and the Americans with Disabilities Act.

The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”)

On March 27, 2020, the President signed H.R.748, or The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), into law.  The CARES Act does not make any adjustments to leave provided under the Families First Coronavirus Responses Act (FFCRA), but mainly cites changes to existing law text (see Sections 3601-3611). 

    • One such change is the addition of rehire verbiage with regard to the 30-day employee eligibility for expanded FMLA leave under FFCRA: “the term ‘employed for at least 30 calendar days’, used with respect to an employee and an employer described in [FFCRA FMLA eligibility], includes an employee who was laid off by that employer not earlier than March 1, 2020, had worked for the employer for not less than 30 of the last 60 calendar days prior to the employee’s layoff, and was rehired by the employer.
    • Section 3606 addresses law text amendments with regard to FFCRA paid sick leave and expanded FMLA tax credits.

State Legislation

State Disability and/or Paid Family Leave Program Responses to COVID-19

Updates from our previous version are in bold type:

  Program / Change Helpful Links
California State Disability Insurance (SDI):

  • 1-week waiting period waived
  • medical certification or written order from a state or local health office is required*

Paid Family Leave (PFL): medical certification or written order from a state or local health office is required*

Paid Sick Leave: self-quarantine may be considered “preventive care”

EDD – COVID-19 information and state programs

EDD – COVID-19 FAQ

DILR Guidance on CA Paid Sick Leave

Summary of Programs for Workers

Hawaii Hawaii has not addressed the Temporary Disability Insurance (TDI) program directly, though this may change. MMA ADL will continue to monitor COVID-19 information released by the Hawaii Department of Labor and the Hawaii Employers Council.
New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI): The definition of “serious health condition” has been expanded to include illness, exposure to, or effort to prevent the spread of a communicable disease, by determination of a health care provider or public health authority. The one week waiting period for TDI is waived for leave for this reason.**

Earned Sick Leave: law as written enables employees to take time off from work for public health emergencies; this was expanded to specify state of emergency situations, resulting work/school closures, and directed quarantine due to suspected exposure to a communicable disease.**

NJ DOL – State Benefits and COVID-19

NJ State Benefit Scenarios

New York Disability Benefits (DBL) and Paid Family Leave (PFL):  no changes to the laws themselves, however claims may be “fast-tracked” for workers under official quarantine and unable to work remotely

Paid Sick Leave: emergency leave for quarantined workers effective March 16; separate accrued paid sick leave requirements begin later this year  (see our March 20 and March 25 releases for details)

Attorney General’s Guidance

(content recently added)

New Paid Leave for COVID-19

Puerto Rico Temporary Disability (SINOT): no announced changes

Paid Sick Leave:

  • If enacted as currently written, House Bill 2428 will amend the current paid sick leave law (Law 180-1998) to provide non-exempt employees five days of emergency paid sick leave after other leaves have been exhausted.
  • On March 13 Puerto Rico’s Department of Labor issued guidance that included instruction that employees be entitled to use their sick leave for any true need associated with COVID-19 (Opinion 2020-01, available only in Spanish).
Rhode Island Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI): 7-day waiting period waived; self-attestation accepted temporarily for individuals under quarantine

Sick and Safe Leave: no changes; law as written enables employees to take time off from work to care for themselves or family members affected by COVID-19

Workplace Fact Sheet
Washington Paid Family and Medical Leave (PFML): no announced changes

Paid Sick Leave: no changes; law as written enables employees to take time off from work for public health emergencies

ESD – COVID-19 Information for Workers and Businesses

WA PFML COVID-19 FAQ

Paid Sick Leave COVID-19 FAQ

WA State Benefit Scenarios

* CA EDD has clarified certification requirements for COVID-19-related SDI and PFL claims. Per the online FAQ, “This requirement can be met by a medical certification signed by a treating physician or a practitioner that includes a diagnosis and ICD-10 code, or if no diagnosis has been obtained, a statement of symptoms; the start date of the condition; its probable duration; and the treating physician’s or practitioner’s license number or facility information. This requirement can also be met by a written order from a state or local health officer that is specific to you. Telehealth and virtual appointments are acceptable for a physical examination, but medical certifications are still required.”

** These changes are permanent as a result of Senate Bill 2304 (P.L.2020, c.17), signed by the governor of New Jersey on March 25, 2020. The law also similarly amends the definition of “serious health condition” under the New Jersey Family Leave Act.

MMA ADL will continue to research and monitor developments.

More information and resources may be found on MMA’s Coronavirus Outbreak Resource Page.

Other Leave News

Washington Paid Family and Medical Leave (WA PFML)

On March 25, 2020, the governor of Washington signed HB 2614, which makes several clarifications on and amendments to the WA PFML law, including:

  • Excludes “casual labor” from the definition of employment and, thus, from quarterly reporting and premium payments.  Casual labor is defined as work that is performed 12 or fewer times per calendar quarter, and on an inconsistent basis. Someone who performs casual labor cannot use those hours or wages toward their eligibility for WA PFML.
  • Expands the definition of a covered family member to include a child’s spouse.
  • Includes “Paid Time Off” and “Supplemental Benefit Payments” in the list of defined terms:*
      • “Paid Time Off includes vacation leave, personal leave, medical leave, sick leave, compensatory leave, or any other paid leave offered by an employer under the employer’s established policy.”  Added text specifies that an eligible employee may receive paid time off while satisfying the waiting period.
      • “Supplemental Benefit Payments means payments made by an employer to an employee as salary continuation or as paid time off.  Such payments must be in addition to any paid family or medical benefits the employee is receiving.”
      • * Please see our February 24 Statutory Update for more information around Supplemental Benefit Payments  
  • Waives the seven calendar day waiting period for leave taken due to qualifying exigency.
  • Adds language around WA PFML benefits and child support obligations.
  • Clarifies that an employer who has an approved Voluntary Plan for medical leave or family leave, but not both, must remit premium for the portion the Voluntary Plan does not cover.

The Employment Security Department (ESD) has posted an updated version of the Employer Toolkit on the WA PFML website.

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved.

Statutory Update – Developments in Coronavirus (COVID-19) Legislation

March 25, 2020

Federal Legislation

Guidance on Paid Leave under the Families First Coronavirus Response Act

On March 24, 2020, the U.S. Department of Labor (DOL) released initial guidance for employers around leave provided under the Families First Coronavirus Response Act (FFCRA) passed last week (requirements were summarized in MMA ADL’s March 20 release). The full text of the DOL’s guidance is available here; below are a few items of note:

Effective Date: FFCRA’s Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act provisions apply to leave taken between April 1, 2020 and December 31, 2020. The effective date was previously communicated as April 2.

      • The guidance confirms that leave provided under FFCRA is in addition to any leave provided by the employer before or after the FFCRA effective date of April 1, even if the employer’s leave is intended for the same purposes.

Employer size:

      • An employer’s size will be based on all full-time and part-time employees in any U.S. state, territory or possession, at the time of each employee’s need for leave. The count should include employees currently on leave, temporary employees and day laborers, but exclude individuals classified as independent contractors under the Fair Labor Standards Act (FLSA).
      • Businesses comprised of multiple entities are instructed to follow FLSA joint employer rules and the FMLA integrated employer test in determining size (#2 in Q&A).

Possible exemptions for businesses with fewer than 50 employees will be addressed in future regulations.

Pay:

      • The total number of hours paid under Emergency Paid Sick Leave is capped at 80 over a two-week period.
      • Calculation of pay for Emergency Family and Medical Leave must include all hours the employee would normally have been scheduled to work.  This includes overtime, however a premium is not required on overtime hours.
          • Examples for calculating pay for part-time or variable hour employees is included (#5 & 6 in Q&A).
      • Rate of pay is based on the definition under FLSA over a period of 6 months prior to the date of leave.

Formal regulations are expected shortly.

The DOL has posted additional information on its COVID-19 and the American Workplace webpage, including:

    • The Required Notice*, which must be displayed in a conspicuous place accessible to all employees. Per the posted FAQ the notice may be distributed to all current employees working remotely via mail or email and/or posted on a website available to all employees.

 *Please note: the version of the notice posted as of today includes some slight errors with regard to leave due to school/daycare closure, including omission from the reasons for paid sick leave and an incorrect aggregate limit for the 10-week paid FMLA portion. For this reason, a direct link to the document is not included here; please visit the DOL website directly, as it is expected an updated version will be posted.  

The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”)

A third phase of legislation in response to the COVID-19 crisis is currently underway: The Coronavirus Aid, Relief and Economic Security Act proposes further aid to businesses, workers, state and local governments, and the healthcare system. While the current bill does not appear to include leave requirements similar to those under FFCRA, this is subject to change as it moves through the judicial system. It is expected that the Senate will approve the bill within the next day or so, at which point it will move on to the House for consideration.  

State Legislation

Recap of State Disability and/or Paid Family Leave Program Responses to COVID-19
  Program / Change Helpful Links
California State Disability Insurance (SDI):

  • 1-week waiting period waived
  • self-attestation or written order from a state or local health office may be accepted as medical certification

Paid Family Leave (PFL): self-attestation or written order from a state or local health office may be accepted as medical certification

Paid Sick Leave: self-quarantine may be considered “preventive care”

EDD – COVID-19 information and state programs

EDD – COVID-19 FAQ

DILR Guidance on CA Paid Sick Leave

Hawaii Hawaii has not addressed the Temporary Disability Insurance (TDI) program directly, though this may change. MMA ADL will continue to monitor COVID-19 information released by the Hawaii Department of Labor and the Hawaii Employers Council.
New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI): no announced changes

Earned Sick Leave: no changes; law as written enables employees to take time off from work for public health emergencies

NJ DOL – State Benefits and COVID-19

NJ State Benefit Scenarios

New York Disability Benefits (DBL) and Paid Family Leave (PFL):  no changes to the laws themselves, however claims may be “fast-tracked” for workers under official quarantine and unable to work remotely

Paid Sick Leave: emergency leave for quarantined workers effective March 16; separate accrued paid sick leave requirements begin later this year (see below and our March 20 release for details)

Attorney General’s Guidance

(content recently added)

New Paid Leave for COVID-19

Puerto Rico Temporary Disability (SINOT): no announced changes

Paid Sick Leave:

  • If enacted as currently written, House Bill 2428 will amend the current paid sick leave law (Law 180-1998) to provide non-exempt employees five days of emergency paid sick leave after other leaves have been exhausted.
  • On March 13 Puerto Rico’s Department of Labor issued guidance that included instruction that employees be entitled to use their sick leave for any true need associated with COVID-19 (Opinion 2020-01, available only in Spanish).
Rhode Island Temporary Disability Insurance (TDI): 7-day waiting period waived; self-attestation accepted

Temporary Caregiver Insurance (TCI): 7-day waiting period waived; self-attestation accepted

Sick and Safe Leave: no changes; law as written enables employees to take time off from work to care for themselves or family members affected by COVID-19

Workplace Fact Sheet
Washington Paid Family and Medical Leave (PFML): no announced changes

Paid Sick Leave: no changes; law as written enables employees to take time off from work for public health emergencies

ESD – COVID-19 Information for Workers and Businesses

WA PFML COVID-19 FAQ

Paid Sick Leave COVID-19 FAQ

WA State Benefit Scenarios

Paid Sick Time Law Updates

Below are recent COVID-19-related changes to paid sick and leave legislation. Note that these are in addition to changes reported in our March 20 release.

  • San Francisco, CA Paid Sick Leave: San Francisco’s Office of Labor Standards Enforcement (OLSE) has issued guidance regarding the use of San Francisco paid sick leave, which adds needs associated with a public health emergency as reasons for use. The guidance also indicates that employers may not require doctor’s notes or other documentation for the duration of the current COVID-19 health emergency.
  • Minnesota:
      • Duluth Earned Sick and Safe Time:  Duluth’s Earned Sick and Safe Time (ESST) ordinance does not specifically list public health emergency as a reason for use of accrued time.  However, FAQ posted on the (ESST) website instruct that ESST may be used for needs associated with COVID-19, including screening, providing or receiving care for symptoms and quarantine with suspected exposure.
      • Minneapolis, MN Sick and Safe Time: The city’s Department of Civil Rights has posted FAQ on the Sick and Safe Time website addressing the use of accrued time for COVID-19-related reasons.  While the ordinance currently includes public health emergency as a covered reason for use, the guidance outlines specific reasons such as quarantine due to suspected exposure to COVID-19, care for the employee or a family member with symptoms of the virus, school and place-of-care closures, and closure of the employee’s workplace by a public official.  
  • Nevada Earned Paid Leave: The law allows for the use of accrued paid time for any reason, which would include needs associated with COVID-19. The Office of the Labor Commissioner has issued guidance stating that use of accrued paid leave due to a mandatory government quarantine should not be counted against an employee’s leave balance.
  • New York Paid Sick Leave: Our March 20 update included mention that, along with emergency paid sick leave in response to COVID-19, the governor of New York also announced comprehensive paid sick leave requirements expected to be effective on or around September 15, 2020.
    • Applies to essentially all private employers and employees, as defined under NYLL Section 190. Government agencies and their employees are excluded.
    • Accrual: 1 hour per 30 hours worked, beginning the later of the law’s effective date or the employee’s date of hire, with the following maximums:
      • Employers with four or fewer employees in a calendar year: 40 hours
        • Employers of this size with net income of $1 million or less in the previous tax year must provide up to 40 hours of unpaid leave  
      • Employers with five to 99 employees in a calendar year: 40 hours
      • Employers with 100 or more employees in a calendar year: 56 hours
    • Employers may also “frontload” the annual maximum amounts above at the beginning of each year.
    • Leave entitlement begins January 1, 2021:
      • Reasons for leave: (1) Diagnosis, care or treatment of an employee’s or covered family member’s physical or mental illness, including preventive care; (2) The employee’s or a covered family member’s needs associated with domestic violence or stalking.
      • Covered Family Members: Employee’s spouse, domestic partner, child, parent, sibling, grandparent or grandchild; also includes spouse’s or domestic partner’s child or parent. Parent and child relationships include biological, foster, step, adoptive, legal guardianship and in loco parentis.
      • Employers may set a minimum increment for use, not to exceed four hours.
    • Accrued but unused time will carry over to the following year; however, employers may impose annual use limits in accordance with the accrual limits outlined above.
    • Employers are not required to pay out accrued but unused time upon the employee’s separation of employment
    • Employers who currently provide time off that meets or exceeds the requirements of the new law are not required to provide additional time.
    • All records must be retained for six years. In addition, an employer must provide an employee with an accounting of accrued, used and available time upon request.
    • The new law does not impact similar laws currently in force in New York City and Westchester County.
  • Oregon Paid Sick Time: Oregon’s Paid Sick Time Law includes needs associated with a public health in its reasons for use.  The Bureau of Labor and Industries has posted FAQ around the availability of paid sick time during the COVID-19 outbreak, which include the suggestion that employers be flexible in the portion of the law that allows a request for medical certification for absences exceeding three days. The FAQ also make note of the recent change to the Oregon Family Leave Act (OFLA), which was covered in our March 20 update.
  • Seattle, WA Paid Sick and Safe Time (PSST): Effective March 18 the law is amended to allow employees to use accrued time upon closure of an employee’s family member’s school or place of care. The amendments also require an employer with 250 or more full-time equivalent employees to allow their employees to take time under the law when their workplace has reduced operations or closes for any health or safety reason. The Office of Labor Standards has noted the changes on its PSST webpage.

MMA ADL will continue to research and monitor developments.

More information and resources may be found on MMA’s Coronavirus Outbreak Resource Page.

 

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved.

Statutory Update – The Families First Coronavirus Response Act Becomes Law

March 20, 2020

On March 18, 2020, the President signed H.R.6201 into law.  Now known as the Families First Coronavirus Response Act (FFCRA), this law is the second to be passed in an effort to provide relief to businesses and workers impacted by the coronavirus (COVID-19) pandemic (the first was H.R.6074, or the Coronavirus Preparedness and Response Act, passed on March 6). While the law is quite broad in scope, this update focuses on the provisions for paid leave.

  Emergency Paid Sick Leave FMLA Expansion
Effective Date 15 days after enactment (April 2, 2020); sunsets December 31, 2020
Impacted Employers

Private employers with fewer than 500 employees*, and public agencies of any size

Special provisions for multi-employer bargaining agreements

Employee Eligibility
  • All employees
  • Note: The Department of Labor may issue regulations allowing employers to exempt certain health care providers and emergency responders.
  • Employed at least 30 calendar days*
  • Exception: Employers may exclude health care providers and emergency responders
Reasons for Use The employee is unable to work (or telework) because:

  1. Employee is subject to a federal, state or local COVID-19 quarantine or isolation order
  2. Employee has been advised by a medical provider to self-quarantine due to COVID-19 concerns
  3. Employee is experiencing symptoms of COVID-19 and seeking medical diagnosis
  4. Employee is caring for an individual who falls under numbers 1 or 2 above
  5. Employee is caring for a son or daughter whose school has been closed, or whose care provider is unavailable, due to COVID-19 concerns
  6. Employee is experiencing other substantially similar condition specified by the Secretary of Health and Human Services
Need related to an emergency with respect to COVID-19 declared by federal, state or local authority: the employee is unable to work (or telework) due to a need for leave to care for his or her child under the age of 18 in the event of school closure or unavailability of childcare
Entitlement
  • Full Time Employees: 80 hours
  • Part-Time Employees: Number of hours that employee works on average over a 2-week period (calculation provided for variable work schedules)
  • Leave is available immediately, regardless of the employee’s length of service
  • Paid Sick Leave is in addition to the employer’s existing policies
  • Employer may not require an employee to use other paid leave provided by the employer before the employee uses Emergency Paid Sick Leave
  • Entitlement ends with the employee’s first scheduled work shift immediately following the termination of the need for leave
  • Paid Sick Leave does not carry over to the following year and is not paid out upon termination of employment

12 weeks

Part of overall FMLA entitlement for eligible employees

Pay
  • Reasons 1, 2 & 3 above: greatest of the employee’s regular rate of pay, federal minimum wage, state minimum wage, or local minimum wage
    • Maximum: $511 per day, up to $5,110 total
  • Reasons 4, 5 & 6 above: 2/3 the employee’s regular rate of pay
    • Maximum: $200 per day, up to $2,000 total
  • Day 1-10 (weeks 1-2): Unpaid; employee can substitute accrued paid leave or Emergency Paid Sick Leave
  • Days 11+ (week 3+): 2/3 the employee’s regular rate of pay for the number of hours the employee would otherwise have been expected to work
  • Maximum: $200 per day, up to $10,000 total
Notice to Employee Employers will be required to post a notice (model to be provided by the Secretary of Labor within the next week) Notice at time of need for leave in accordance with FMLA requirements
Notice to Employer Employer may require “reasonable notice procedures” As soon as practicable
Job Protection Not specified in the law text
  • Employer must restore employee to same or equivalent position upon return to work.
  • Exception: employers with fewer than 25 employees will not be held to this if the employee’s position no longer exists due to business changes resulting from the public health emergency. In this event, the employer is obligated to notify the employee if equivalent employment becomes available within 1 year.
Employer Assistance Tax credit equal to 100% of qualified Paid Sick Leave wages paid by the employer per calendar quarter.  The credit is taken against the employer portion of Social Security taxes (IRC 3111(a) and 3221(a)).

Self-employed individuals may also be eligible.

Tax credit equal to 100% of qualified family leave wages paid by the employer per calendar quarter.  The credit is taken against the employer portion of Social Security taxes (IRC 3111(a) and 3221(a)).

Self-employed individuals may also be eligible.

* Differs from current FMLA definitions of Employee (Sec. 101(2)(A) and (B)(ii)) and Employer (Sec. 101(4)(A)(i)), but only for leave provided under FFCRA

The law does not specify how the 500 employee threshold is calculated, though it is reasonable to believe the Department of Labor would borrow the integrated employer test used from the FLSA and/or FMLA (see September 11, 2000 DOL opinion letter for reference). Also, for both Emergency Paid Sick Leave and FMLA Expansion FFCRA states that “The Secretary of Labor shall have the authority to issue regulations for good cause … to exempt small businesses with fewer than 50 employees … when the imposition of such requirements would jeopardize the viability of the business as a going concern”.

What About Larger Employers?

FFCRA does not impose paid leave requirements on employers with 500 or more employees.  The Senate is currently reviewing proposals for a third “phase” of legislation and, while main focus seems to be on economic “stimulus and relief”, it does appear as though what is ultimately passed will have some component related to paid leave.

In our March 6 release we outlined practical and compliance items to consider in designing a policy to address employee needs that may not be met by existing company benefits during a public health emergency.  Since then we have been working with our customers and vendor partners to help shape best practice recommendations.  Below are a few positions resulting from those discussions:

Short Term Disability (STD)

At this time, it is not recommended that employers adjust their disability programs, either in the way of altering benefits, removing waiting/elimination periods or providing benefits for conditions that may not normally meet the plan’s definition of disability.  In fact, many insurance carriers will not permit such changes on insured policies. Employers with self-funded plans considering alterations of this sort are strongly advised to consult with counsel.

Family and Medical Leave Act of 1993 (FMLA)

We have been in contact with legal resources and the predominant opinion on FMLA is, as the law stands now and FFCRA requirements aside, FMLA does not come into play unless and until an employee and/or a covered family member experiences symptoms. Per the Department of Labor, “leave taken by an employee for the purpose of avoiding exposure to the flu would not be protected under the FMLA”. It is recommended that the FMLA process be initiated after three consecutive days of missed work with reported symptoms.  Employers may wish to consider being flexible with requirements around deadlines and what may be accepted for medical certification.

Americans with Disabilities Act (ADA/ADAAA)

Currently COVID-19 on its own isn’t being considered a disability under ADA, so direct accommodations will likely not apply.  However, employers are encouraged to consider accommodations requested by individuals with medical conditions that could be further compromised by COVID-19.  Guidance on how the ADA may apply during a pandemic situation can be found on the U.S. Equal Employment Opportunity Commission (EEOC)’s Pandemic Preparedness in the Workplace and the Americans With Disabilities Act, which was updated on March 19.

Additional Protections for Employees
State Laws

In our March 13 release we discussed how some of the states with mandated disability and/or family leave programs have been responding to workers’ needs around COVID-19.  Below is a reiteration of some of those changes, plus a few developments on these and other legislation since then.

Statutory Disability and Family Leave Laws

      • California: The governor’s March 12 Executive Order waived the one-week waiting period for State Disability Insurance (SDI)
      • New York: Quarantined employees covered by SB8090, passed on March 16, could be fast-tracked for Disability Benefits (DBL) and Paid Family Leave (PFL) benefits while under official quarantine.  Details are under new paid sick leave legislation below.
      • Rhode Island: The recently posted Workplace Fact Sheet includes “emergency regulations” affecting state programs as part of the State of Emergency declared on March 9.  The regulations waive the seven-day waiting period for Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI) benefits; they also waive medical certification requirements for individuals under COVID-19 quarantine.
      • New Jersey and Washington have released user-friendly scenario infographics to help explain which state benefits apply when. (While there is no PFML law in place, Oregon has released a similar piece)

Paid Sick Leave Laws

Existing Laws

        • Currently, 19 Paid Sick Leave Laws include specific language allowing use of accrued time for public health emergency and/or school closure.  Similar laws in Maine (eff. 1/1/21), Nevada (eff. 1/1/20) and Bernalillo County, NM (eff. 7/1/20) allow leave to be taken for any reason.
States Localities
Arizona
Michigan
New Jersey
Oregon
Rhode Island
Vermont
Washington
San Diego, CA
Chicago, IL
Cook County, IL
Montgomery County, MD
Minneapolis, MN
St. Paul, MN
New York City, NY
Westchester County, NY
Pittsburgh, PA*
Seattle, WA
SeaTac, WA
Tacoma, WA

* Pittsburgh’s Paid Sick Days Act just became effective on March 15, however employers may allow use in advance of accrual if they choose.

Some of those that do not specifically call out public emergency as a qualifying reason for use have issued guidance that accrued time may be used for this purpose.  These include California, Emeryville, CA, and Santa Monica, CA (which follows the state’s guidance for use).

New Legislation:

        • San Francisco, CA: On March 16 the mayor of San Francisco announced the Workers and Families First program, which allocates $10 million of public funding to help businesses provide an additional five days of sick leave pay to workers above and beyond their existing policies. All San Francisco businesses will be eligible, with up to 20% of funds reserved for employers with 50 or fewer employees. The City will contribute up to one week (40 hours) at $15.59 per hour (current minimum wage) per employee, or $623 per employee. The employer will pay the difference between the minimum wage and an employee’s full hourly wage.
        • Colorado: On March 11 the Colorado Department of Labor published Colorado Health Emergency Leave with Pay Rules (“Colorado HELP”).  The rules require employers in certain industries to provide paid sick leave to employees with flu-like symptoms while awaiting COVID-19 testing. Industries covered include leisure and hospitality, food services, child care, education (including transportation, food service, and related work), home health care, nursing homes, and community living facilities.  The maximum amount of entitlement is four calendar days, during which the individual is only paid for the days he or she would have worked. Leave ends upon receipt of a negative test before the four-day period ends. Employers who already provide paid leave that meets the rules’ requirements do not need to provide additional leave.  The rules are set to expire in 30 days, but there is the possibility this timeframe could be extended.
        • New York: On March 16 the governor announced an agreement with the legislature on SB8090 which, effective immediately, provides job protection and pay for employees during an official mandatory or precautionary order of quarantine or isolation due to COVID-19.  Note that the provisions outlined do not apply if an employee is asymptomatic and is able to work remotely.
              • Employers with 10 or fewer employees nationally and a net income less than $1 million will provide job protection for the duration of the quarantine order. Employees will immediately qualify for Paid Family Leave and temporary disability benefits*. These benefits may provide wage replacement up to a maximum combined total of $2,884.62 per week.
              • Employers with 11-99 employees nationally and employers with 10 or fewer employees nationally and a net income greater than $1 million will provide at least five days of paid sick leave, and job protection for the duration of the quarantine order. Employees will then immediately qualify for Paid Family Leave and temporary disability benefits*. These benefits may provide wage replacement up to a maximum combined total of $2,884.62 per week.
              • Employers with 100 or more employees nationally, as well as all public employers, will provide at least 14 days of paid sick leave and guarantee job protection for the duration of the quarantine order.

* For the purposes of this act, “disability” means an employee is unable to perform his or her work duties from home and has exhausted all paid sick leave provided by their employer under this act.

Sick time provided is in addition to any sick time the employee may have accrued.

Working parents whose minor dependent child is subject to a mandatory or precautionary order of quarantine may also qualify for Paid Family Leave.

More information can be found on the Paid Family Leave and Emergency COVID-10 Paid Sick Leave websites.

The bill also includes an accrued paid sick leave component, which is set to become effective 180 days after passing (around September 12, 2020):

              • Employers with four or fewer employees and a net income less than $1 million will provide at least five days of unpaid sick leave each year.
              • Employers with 5-99 employees and employers with four or fewer employees and a net income greater than $1 million will provide at least five days of paid sick leave each year.
              • Employers with 100 or more employees will provide at least seven days of paid sick leave each year.
        • Philadelphia, PA: On March 16 the Office of Labor announced that the City’s “Promoting Healthy Families and Workplaces Act” has been expanded so that covered workers can use accrued leave for COVID-19 related business closures, quarantine, and to stay home with their children during school closures.

Proposed Changes:

        • Los Angeles, CA: which has a Paid Sick Leave law in place, is considering an emergency program that would provide at least 14 days of paid sick leave during a public health crisis or major disaster.
        • Puerto Rico: HB2428 was proposed to amend the current sick leave law (Law 180-1998) by replacing the current provision of 20 days of unpaid emergency leave due to diagnosis of a pandemic illness with five days of paid emergency leave
        • Vermont:  Changes to the Earned Sick Time Law that would ensure that employees forced to take COVID-19 related leave are eligible for benefits, as well as provide businesses relief for some of the cost related to paid leave were submitted as amendments to H.681.  As of March 13 the bill has been passed by the House and on to the Senate.

State Family and Medical Leave Laws (Unpaid)

Many states currently have “FMLA-like” laws that provide protection that extends beyond FMLA in one respect or another. These laws typically do not specifically cover absences due to a public health emergency; however, states are beginning to make amendments:

      •  On March 17, the Washington D.C.’s mayor signed the “COVID-10 Emergency Amendment Act of 2020”, which amends the District of Columbia Family and Medical Leave Act (DC FMLA) to provide “Declaration of Emergency” leave for circumstances associated with a declared public health emergency, including quarantine or isolation advised by a public agency or a medical provider. The Act waives employer size and eligibility requirements for other DC FMLA leaves, and allows leave for the duration of the period in which the emergency declaration is in effect (versus the limitation of 16 weeks in a 24-month period for other leave types). As written, the Act will be in effect for 90 days, but may be extended if necessary.
      • On March 18 Oregon’s Secretary of State issued a Temporary Administrative Order that expands qualifying reasons for leave under the Oregon Family Leave Act (OFLA) to include care for an employee’s child whose school or place of care has been closed in conjunction with a statewide public health emergency declared by a public health official.
Unemployment Insurance Laws

Under certain circumstances such as reduction in hours, unavailability of work, site closure, or even inability to work due to a child’s school closure, employees may find assistance through state Unemployment Insurance (UI). In addition to the paid leave provisions outlined above, FFCRA includes direction of funds to support state unemployment programs.  Conditions of the emergency grants include a requirement that each state demonstrates steps to ease eligibility requirements and access to compensation for claimants, including waiving benefit waiting periods and work search requirements. The law also recommends leniency with the experience ratings of employers directly impacted by COVID-19 illnesses in the workplace or quarantine requirements imposed by health officials.

Many states have independently made changes to their UI requirements in response to COVID-19 and the extraordinary increase in claims:

    • States such as California, Connecticut, Minnesota, Rhode Island and New York are waiving the one-week waiting period, allowing claimants impacted by COVID-19 to be paid from day one if eligible.
    • Many states such as California, Connecticut and Rhode Island are waiving the usual requirement that the claimant be actively looking for work.
    • Washington D.C. made several amendments, including allowing employees to receive UI benefits if they voluntarily leave their jobs “for good cause” (as defined).
    • Delaware, New Jersey, Ohio and Washington will provide claimants with benefits if their employer temporarily closes or is shut down due to State of Emergency.
    •  Pennsylvania, Oregon and Vermont may pay claimants if they have temporarily reduced hours and expect to return to work.
    • Some states are communicating that claimants may be eligible for benefits if they must stay home with a family member who has been diagnosed with COVID-19. Colorado appears to be the most generous with their definition of “family member”, citing that a claimant may receive benefits to take care of a domestic partner, parent, child, brother or sister.
    • Many States such as North Carolina, New Hampshire and Ohio may pay the claimant if their healthcare provider orders them to “avoid contact” with others during this time.

Employers are advised to consult with their benefit program carriers to see if and how benefits continue in the event of furlough, temporary layoff and/or reduction in hours.

MMA ADL will continue to research and monitor developments.

More information and resources may be found on MMA’s Coronavirus Outbreak Resource Page.

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved.

Statutory Update – Coronavirus’ Impact on State Disability and Family Leave Programs

March 13, 2020

Below is information on how the states with disability and/or paid family leave laws are addressing these programs as they relate to current COVID-19 (coronavirus) concerns. It is worth noting that some of the rules/guidance may impact the interplay of the state program with a company’s Short Term Disability policy (see specifically CA FAQ and RI emergency regulations).

  Programs News and Resources
California • State Disability Insurance (SDI)

• Paid Family Leave (PFL)

• Unemployment Insurance (UI)

• Paid Sick Leave

EDD – COVID-19 information and state programs

EDD – COVID-19 FAQ

DILR Guidance on CA Paid Sick Leave

Hawaii • Temporary Disability Insurance (TDI)

• Unemployment Insurance (UI)

Hawaii has not addressed the TDI or Unemployment Programs directly, though this may change. MMA ADL will continue to monitor COVID-19 information released by the Hawaii Department of Health and the Hawaii Employers Council.
New Jersey • Temporary Disability Insurance (TDI)

• Family Leave Insurance (FLI)

• Unemployment Insurance (UI)

• Paid Sick Leave

NJ DOL – State Benefits and COVID-19
New York • Disability Benefits (DBL)

• Paid Family Leave (PFL)

•  Unemployment Insurance (UI)

Attorney General’s Guidance

Also:

Governor Cuomo has called for paid-leave provisions in his 2020 Executive Budget; voting on the proposal could be conducted as early as next week.

• New York City and Westchester County also have mandatory paid sick time

Puerto Rico • Temporary Disability (SINOT)

• Unemployment Insurance (UI)

Puerto Rico has not addressed the SINOT or Unemployment Programs directly, though this may change following the State of Emergency declaration on March 12, 2020.
Rhode Island • Temporary Disability Insurance (TDI)

• Temporary Caregiver Insurance (TCI)

• Unemployment Insurance (UI)

• Paid Sick Leave

Workplace Fact Sheet includes “emergency regulations” affecting state programs as part of the State of Emergency declared on March 9:

1. Waiver of 7-day waiting period for  COVID-19 related TDI and TCI claims;

2. Waiver of required medical certification for individuals under COVID-19 quarantine;

3. Waiver of the 7-day waiting period for COVID-related Unemployment Insurance claims.

The Fact Sheet also includes a reminder that RI’s Sick and Safe Leave law enables employees to take time off from work to care for themselves or family members affected by COVID-19.

Washington • Paid Family and Medical Leave (PFML)

• Unemployment Insurance (UI)

• Paid Sick Leave

ESD – COVID-19 Information for Workers and Businesses

ESD – COVID-19 Program Comparison Guide

Emergency Unemployment Insurance Rules

COVID-19 Legislation

In addition to the New York proposal mentioned above, other states, including (but not limited to) Alabama, Hawaii, Illinois, Kentucky, Maryland, Michigan, Minnesota, Tennessee, Utah and Washington have introduced legislation aimed at protecting the public interest.  Federal legislation has also emerged in response to the needs of businesses and their employees in the wake of this national health threat:

•   House Bill 6074: Public Law No. 116-123, or the “Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020”, was signed into law on March 6, 2020.  The Act provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak. The funds will be directed toward needs associated with the development and distribution of vaccinations and other medical supplies, grants for public health agencies, small business assistance, emergency preparedness, humanitarian support and promoting telehealth services under Medicare.

        House Bill 6201: If passed, the “Family First Coronavirus Response Act” would provide individuals affected by COVID-19 with paid leave, food assistance and coverage for virus testing; it would also expand benefits under unemployment insurance and increase states’ funding for Medicaid.  The bill was introduced in the House on March 11, 2020 and referred to committee.  Due to the broad scope and potential cost of the bill, it is likely to face considerable opposition.

        House Bill 6207, introduced on March 11, 2020, focuses on unemployment benefits for workers affected by COVID-19.

        Senate Bill 3370 and House Bill 6019 propose means and direction for research and development of a coronavirus vaccine.  Both were introduced in the past few weeks and referred to committee.

MMA ADL will continue to research and monitor developments.

More information and resources may be found on MMA’s Coronavirus Outbreak Resource Page.

 

Please contact your MMA ADL Account Team members for specific questions about these or other updates.

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved.

Coronavirus (COVID-19) Leave of Absence Considerations

March 6, 2020
Introduction

The emergence and spread of the coronavirus disease (COVID-19) has elicited myriad reactions on all fronts. While companies are struggling to forecast the economic impact, they must also manage immediate business needs and at the same time demonstrate care for the well-being of their employees. We have all seen the first-level precautionary advice on reducing the spread of the virus such as amplified hygiene and cleaning practices, limited contact with large groups of people, and travel restrictions, but employers must also prepare for employee absences that may be a necessary component of any business continuity plan.

Developing a “Coronavirus Leave” Policy

MMA ADL’s Absence, Disability and Life (ADL) practice has been in close contact with our customers to see how they are responding to this issue and provide assistance where possible. This collaboration, in conjunction with advice from legal counsel, has resulted in the following points to consider in developing a “quarantine” policy focused on coronavirus or other infectious disease.

Policy Design

Keeping in mind that a company’s industry or business needs may warrant adjustments in approach, the basic outline of a quarantine policy may be as follows:

    1. Employees should be informed around when and how to notify management of potential or confirmed exposure. Managers should be provided with guidance on next steps in either scenario.
    2. If an employee has been exposed, or fears they may have been exposed, to someone with coronavirus, the employee will be required to work from home for a 14-day period to monitor whether symptoms develop.
        • This could be extended to include employees returning from international travel.
        • Special consideration may need to be given for essential personnel who cannot work from home, such as an alternative work location.
        • Additional considerations should be made for non-essential employees that do not have the option to work from home.
    1. If no symptoms develop the employee should follow the employer’s normal return to work process.
    2. If symptoms develop the employee should follow the employer’s process to apply for Short Term Disability (STD), FMLA and/or any applicable company leave.
        • Note that the diagnosis may or may not qualify under STD; normal plan rules and requirements would apply.
        • If the virus was communicated in the course of the employee’s regular job, the absence could fall under Workers’ Compensation. If the employee contracted the virus at work, but incidentally, Workers’ Compensation likely would not apply.
        • The U.S. Equal Employment Opportunity Commission (EEOC) has stated in recent guidance (see below under ADA/ADAAA) that employers are justified in requesting return to work certification from a doctor before permitting employees to return to the workplace. In addition, due to demand that may result from an increased need for health care providers it is suggested that employers may attempt a “new approach” for this certification. Employers will want to engage their disability insurers and leave administrators in determining what will satisfy the requirement (e.g., certification from a telemedicine provider, etc.).
Quarantine – to Pay or Not to Pay?

If an employer’s existing leave policies do not provide for paid leave under these circumstances, the employer can require employees to use accrued sick time, vacation or PTO for the days they must stay home, and may require exempt employees to make up lost work time. Employers may want to consider adjusting existing time off or leave programs, or creating a separate paid policy, to support employees who must stay at home.

Be Conscious of Compliance

Employers should take care that any policy developed complies with the requirements of various employment laws:

Family and Medical Leave Act of 1993 (FMLA): Coronavirus would qualify as a “serious health condition” under FMLA, so FMLA procedures should be followed for eligible employees who have been diagnosed. Leave for an employee without an actual coronavirus or severe flu diagnosis should not be designated FMLA. Comparable state laws may provide additional leave benefits.

Americans with Disabilities Act (ADA/ADAAA): Leave or work schedule changes could be considered reasonable accommodations to alleviate physical or mental health impacts of the coronavirus threat. The U.S. Equal Employment Opportunity Commission (EEOC) has released a “preparedness” document to assist employers in identifying how and when the ADA might apply under pandemic circumstances; the document addresses:

    • Medical inquiries and requiring medical examination
    • The definition of “direct threat”
    • Requiring symptomatic employees to stay home
    • ADA-compliant practices prior to and in the event of pandemic:

   What is ok and not ok to ask and require of employees

   Requiring symptomatic employees to stay home

   Providing new and maintaining existing accommodations

   Requiring a doctor’s note to return to work

Fair Labor Standards Act (FLSA): Generally speaking, the FLSA does not require employers who are unable to provide work to non-exempt employees to pay them for hours they otherwise would have worked (note that a CBA or other contract may alter this). Salaried exempt employees must receive their full salary in any week in which they perform any work, with limited exceptions.

The Department of Labor’s webpage dedicated to Pandemic Flu and the Fair Labor Standards Act further clarifies that the FLSA and its implementing regulations do not prevent employers from implementing telework or other flexible work arrangements. If these arrangements are allowed, employers must pay non-exempt employees no less than the minimum wage for all hours worked and to pay at least one and one-half times the employee’s regular rate of pay for all hours worked over 40 in a workweek.

HIPAA: Circumstances surrounding a pandemic do not excuse employers from their responsibility to protect their employees’ privacy under HIPAA. However, a recent bulletin released by the Department of Health and Human Services (HHS) states that “appropriate uses and disclosures of the information still may be made when necessary to treat a patient, to protect the nation’s public health, and for other critical purposes”. The full guidance, which features additional resources for information, can be found on the HHS’ Emergency Situations webpage.

Inform Your Workforce

Employers are required under the Occupational Safety and Health Act’s (OSHA) general duty clause to provide their employees a place of employment “free from recognized hazards that are causing or are likely to cause death or serious physical harm”.  It is imperative that employers develop a solid action plan to protect their employees from the spread of infectious disease. Available resources and benefits, plus what is expected of employees themselves, must be clearly communicated.  It is recommended that established policies be posted in accessible areas and distributed to each employee as possible.

Additional Considerations

Employers are also advised to:

    • Work with all benefit plan carriers and vendors to ensure that any “actively at work” requirement included in a contract or agreement features an exception for employees on quarantine leave, thereby maintaining employees’ active status and benefits eligibility during this period.
    • Contact vendors who manage Business Travel Accident and travel assistance programs to see what may be available to employees who are away from home including evacuation support and get clarification/confirmation on what exclusions may exist so you can plan accordingly.
    • Remind employees of and encourage them to utilize existing resources to help them navigate a situation that is (or may become) challenging, such as Employee Assistance Programs (EAP), programs available through their medical carrier and even how to leverage telemedicine.
    • Consult the following resources for additional information and developments:
Conclusion

As the full impact of this current threat is yet unknown, employers are strongly advised not to take a “wait and see”’ approach, but to put policies and processes in place to help their organizations weather this, and potentially any future, storm. These decisions should include multiple disciplines within your organization as it relates to broader risk and talent management strategies.

For additional information, please visit MarshMMA.com Coronavirus Outbreak Information

We’re here to help. MMA ADL’s absence, disability and life experts are constantly developing innovative employee-benefit solutions to maximize workforce productivity, ensure compliance and enhance the employee experience.

To learn more:

Email: [email protected] or visit www.trionadl.com

No part of this document may be reproduced, quoted, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or by any information storage and retrieval system), without express, prior permission, in writing from Marsh & McLennan Agency, LLC.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. MMA ADL Group, a Marsh & McLennan Agency, LLC Company shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change. Copyright © 2020 MMA ADL Group, a Marsh & McLennan Agency, LLC Company. All rights reserved.

Statutory Update – Washington Paid Family and Medical Leave

February 24, 2020
Washington Paid Family and Medical Leave (WA PFML) is Here!

WA PFML went live on January 1 and, to assist workers in preparing for and submitting leave applications, ESD has updated the Employee page of the PFML website with a new look and feel.  Here employees can find general information about the program, plus access additional resources such as a benefit estimator, checklists, guides and forms on the Get Ready to Apply page.  Employer resources, including the updated Employer Toolkit, can be found on the Employer page.

Model Notice Available

On December 24, 2019, Washington’s Employment Security Department (ESD) posted the model Poster and Statement of Employee Rights, which can both be found on the WA PFML Employer Page.  As of January 1, 2020, employers are required to display the poster in a conspicuous place, plus provide the Statement of Employee Rights within 5 business days of the later of an employee’s (1) 7th consecutive day of absence, or (2) notice to the employer that absence is due to medical or family leave.

Interplay of WA PFML and Company Leaves

MMA ADL has received a number of questions from our clients about how WA PFML will work with their existing benefit programs.  Given the complexity of the topic we engaged our legal counsel to assist with interpretation.

Does WA PFML run concurrently with FMLA?

FMLA and WA PFML will run concurrently where possible. However, given the restriction that employers may not dictate when an individual takes leave under WA PFML, the potential exists for them to run separately, or “stack”, thereby providing the employee with leave and job protection exceeding each individual law’s maximum duration.

Does WA PFML run concurrently with an Employer’s Short Term Disability and/or Paid Leave benefits?

Nothing in the WA PFML law prohibits an employee from receiving WA PFML and company benefits such as Short Term Disability, Paid Family Leave and Paid Parental Leave at the same time.  However, as employers may not restrict an employee’s access to WA PFML leave or benefits in any way, there is the potential for employees to wait to apply for WA PFML leave until after company benefits have been exhausted.

To reduce the opportunity for this “stacking” of benefits, employers may want to consider amending their policies to make eligibility for receipt of company benefits contingent upon an employee’s application for WA PFML benefits. Thus, an employee is not required to access the employer’s benefits, but if he wishes to do so, he must first apply for WA PFML.

In order to accomplish this, however, the employer must first designate specific company benefits as ‘Supplemental Benefits’…

What are Supplemental Benefits?

The regulations define a “Supplemental Benefit Payment” as “a payment offered by an employer to an employee who is taking leave under [WA PFML]”, and state that “employers may, but are not required to, designate certain benefits including, but not limited to, salary continuation, vacation leave, sick leave, or other paid time off as a supplemental benefit” (WAC 192-500-180).

Any payment that the employer designates as a Supplemental Benefit will, at the time of a WA PFML claim, be “ignored” by the state for the purposes of paying the WA PFML benefit.  The employer will want to make sure that their policies limit the company-provided benefit to a “top-off” of the employee’s WA PFML benefit.  This will take the form of benefit offsets that employers are used to seeing with other statutory benefits.  For example, if an employee is receiving company Paid Family Leave and WA PFML benefits concurrently, the company leave benefit would be reduced, or “offset”, by the amount of the WA PFML benefit; this results in the employee receiving the greater of the two benefits, not both.

Payments not designated as Supplemental Benefits are paid instead of WA PFML benefits for a particular period; they do not run concurrently and do not “top off”.

As noted in the sections above, employers should amend their policies as needed in order to clearly outline how their leave and paid time off benefits will work with WA PFML.

Other Impacts of Supplemental Benefits

As stated in the regulations:

    1. Supplemental benefits are excluded from the definition of wages in the WA PFML law
    2. Employers should not report supplemental benefit payments or associated hours to the department during quarterly reporting to ESD for WA PFML purposes*
    3. Employees should not report hours of paid time off that have been offered as supplemental benefit payments by the employer to the department on the weekly application for benefits*.

ESD has clarified that only the portion of the supplemental benefits paid at the time WA PFML is taken is non-reportable.

Which Benefits Should Be Designated as Supplemental Benefits?

Since it is permissible for WA PFML benefits to run concurrently with and offset Supplemental Benefits, likely choices are a company’s paid leave benefits such as those for maternity, parental and family care.  The regulations include salary continuation, sick time, vacation time and “other paid time off” in the list of payments that may be designated as Supplemental Benefits, however employers may want to take care when considering this for banks of time that may be used to comply with Washington’s Paid Sick Leave (PSL) ordinance.  Since the PSL allows employees to decide when to use accrued time for qualifying reasons and requires payment at a set rate, there is concern that an employer could be in violation of the PSL law if an employee sought to use a full day of PSL and the employer attempted to offset the full day of PSL with the WA PFML benefit.  Employers are encouraged to consult with an attorney in making this decision.

Notes:

    • Most company disability program benefits are excluded from the definition of wages and are therefore ignored by ESD in the payment of benefits. With that, STD may not need to be specifically designated as a Supplemental Benefit, but it is suggested that employers do so in order to be clear to employees that the two are treated the same way.
    • A benefit’s designation as “Supplemental” is irrelevant during the WA PFML waiting period. That is, it does not matter what type of paid time the employee elects to use during the waiting period, it does not impact WA PFML benefits paid after that time.
    • Employers with Voluntary Plans are not required to designate Supplemental Benefits.  However, the employer’s disability and leave policies should clearly outline how company benefits work in conjunction with WA PFML.

How Does an Employer Designate Supplemental Benefits?

There is no explanation in the law text or regulations as to how an employer identifies Supplemental Benefits for its employees, though the first step may be during preparation of the Statement of Employee Rights that must be provided to the employee at the time of need for leave, as described above.  The model provided by ESD includes the following text:

This employer offers supplemental benefits: Y ______ N _______

Note: Except during the waiting week, employees cannot use employer provided paid time off at the same time as Paid Family and Medical Leave, unless the employer chooses to offer a “supplemental benefit.” Supplemental benefits can be used along with Paid Family and Medical Leave to provide additional pay while an employee receives partial wage replacement through Paid Leave benefits. Employees may accept or reject supplemental benefit payments.

Rather than simply indicating Yes or No, employers may want to list which of the company’s benefits have been designated as “Supplemental”.  This may help avoid confusion as well as temporarily bridge the gap while formal policies are being updated.

 Note: The Statement of Employee Rights also includes a spot for the employer’s Unique Business Identifier (UBI) number, the company’s 8-digit WA tax registration number issued by the state.  Employees of employers participating in the State program will need the company’s UBI in order to file a WA PFML claim online.

Please contact your MMA ADL Account Team members for specific questions about these or other updates.