Supreme Court Says DACA Stays – For Now

APPLIES TO

All Employers of DACA Recipients

EFFECTIVE

June 18, 2020

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In Dept. of Homeland Security v. Regents of the Univ. of Cal., the U.S. Supreme Court recent ruled that the Deferred Action for Childhood Arrivals (DACA) program was improperly ended by the U.S. Dept. of Homeland Security (DHS).

DACA allows certain unauthorized aliens who arrived in the United States as children to apply for a two-year forbearance of removal. Those granted relief become eligible for work authorization and various federal benefits. In June 2017, DHS announced it would no longer accept new applications, but that existing DACA recipients whose benefits were set to expire within six months could apply for a two-year renewal. For all other DACA recipients, previously issued grants of relief would expire on their own terms, with no prospect for renewal.

The Supreme Court said that required procedures were not followed when DHS ended the program, and DHS’s stated grounds for ending the program were insufficient. As a result, DACA recipients may continue to renew membership in the program, which includes work authorization in the U.S. and temporary protection from deportation. Employers should continue to look for updates on this topic should DHS attempt to end the program again.

Action Items

  1. Monitor employees’ work authorization extensions and expirations, as applicable, including updating Form I-9’s.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

COVID-19: EEOC Updates Guidance on ADA and Other EEO Laws

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All Employers

EFFECTIVE

June 11 and 17, 2020

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The Equal Employment Opportunity Commission (EEOC) continuously updates its “What You Should Know” guidance related to COVID-19. It recently provided updates on June 11th and 17th. Here are some of the key takeaways:

  • Employers may only use viral testing to verify the absence of COVID-19 as a bar to entry to return to work. Employers cannot use antibody testing for this purpose because it is an impermissible medical exam.
  • Employers must engage in the interactive process with employees who are unable to take a viral test due to a medical condition, disability, or religious belief.
  • Employers are not required to accommodate an employee without a disability based on the disability-related needs of a family member or other person with whom she is associated. “For example, an employee without a disability is not entitled under the ADA to telework as an accommodation in order to protect a family member with a disability from potential COVID-19 exposure.”
  • The EEOC warns against harassment of those who are or are perceived to be of an Asian national origin, including about the coronavirus or its origins, as is prohibited under Title VII.
  • Employers may not discriminate against pregnant employees or employees aged 65 or older because of an increased risk of infection with COVID-19.

Action Items

  1. Review testing procedures for compliance with the updated guidance.
  2. Provide discrimination and harassment prevention training to managers.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

PPP Extensions Provide Relief for Borrowers

APPLIES TO

All Employers with PPP Loans

EFFECTIVE

June 5, 2020

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HR 7010 recently extended certain provisions of the Paycheck Protection Program (PPP) Flexibility Act of 2020.

  • Borrowers can spend up to 40% (formerly 25%) on qualified non-payroll costs, such as rent and utilities costs.
  • The time for borrowers to spend loan funds and meet forgiveness requirements has been extended from June 30 to December 31, 2020.
  • Loans must now have a minimum maturity of 5 years (rather than 2 years).
  • Payments on loans can be deferred until loan forgiveness is given to the lender by the SBA, or 10 months after the end of the covered period if the borrower did not yet request loan forgiveness.
  • The time for employers to restore full-time equivalent (FTE) employees to their status and wages in order to qualify for loan forgiveness is extended from June 30 to December 31, 2020.
  • Employers who are unable to return to the same level of business activity under certain circumstances or rehire laid off or similarly qualified workers may still qualify for loan forgiveness with sufficient documentation.
  • Borrowers can now defer payroll taxes that were previously prohibited under the CARES Act.

Action Items

  1. Read the text of the bill here.
  2. Prepare for revised requirements for loan forgiveness.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

U.S. DOL Clarifies Overtime Exemption for Commissioned Employees

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All Employers

EFFECTIVE

May 19, 2020

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Under the Fair Labor Standards Act (FLSA), commission-paid employees may be exempt from overtime pay if they meet certain conditions, including a compensation test, regular rate test, and if the employer is a qualified “establishment.”  As of May 19, 2020, the U.S. Department of Labor (DOL) clarified the “establishment” test by removing prior historical, and in some cases contradictory or confusing, interpretations of the exemption.

In order to qualify for the exemption, the commissioned employee must work for a retail or service establishment.  The DOL and various courts looked at a variety of factors to identify what establishments counted for the purpose of this exemption, creating lists of establishments that were “covered” or “not covered.”

In the May 19 update, the DOL withdrew these lists, emphasizing the importance of not relying solely on labels.  In the same way that an individual’s job title alone does not determine things like FLSA classification, employers will need to undergo fact-specific analysis of a particular establishment in order to determine if the establishment is not-retail.

Action Items

  1. Review the Federal Register update here.
  2. Have pay and exemption status reviewed for commissioned employees.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

IRS Relaxes Restrictions on Making Mid-Year Health Coverage Changes

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All Employers

EFFECTIVE

May 12, 2020

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Under normal circumstances, employees are typically only able to elect health coverage during open enrollment each plan year, unless the employee experiences qualifying life events.  On May 12, 2020, the IRS issued IRS Notice 2020-29, which suspends the federal rule limiting mid-year plan changes.  Notice 2020-29 allows employers to amend Section 125 plans to permit mid-year changes to coverage for 2020.

Examples of mid-year changes employers may permit include:

  • Enrolling in the plan if coverage was previously declined.
  • Switching between higher and lower-cost health plan options.
  • Switching from coverage levels, e.g., moving from employee and family coverage to individual employee only coverage.
  • Increasing or decreasing the amount of contributions allocated to a flexible spending account.
  • Dropping health coverage if the employee has other comprehensive coverage, or may obtain coverage immediately through a spouse or marketplace.

In addition to flexibility with plan elections, Notice 2020-29 allows health FSA grace periods that expire in 2020 to be extended through December 31, 2020, providing employees more time to set aside funds for medical expenses that may have been impacted by the COVID-19 pandemic.

Action Items

  1. Review the text of Notice 2020-29 here.
  2. Review benefits plans with benefits consultant for possible modifications and allowances.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

California: CCPA Final Regulations Pending

APPLIES TO

All For-Profit Employers with CA Employees subject to the CCPA

EFFECTIVE

TBD

QUESTIONS?

Contact HR On-Call

(888) 378-2456

On July 1, 2020, the California Attorney General began enforcing the California Consumer Privacy Act (CCPA) which requires businesses to comply with certain privacy protections for consumers and employees who reside in California. However, California is still lacking guidance on compliance with the CCPA. On June 1, 2020, the California Attorney General released the final proposed regulations for the CCPA to the California Office of Administrative Law (OAL). OAL has up to 30 working days, plus an additional 60 calendar days under Executive Order N-40-20 related to the COVID-19 pandemic, to review the package for procedural compliance with the Administrative Procedure Act. Once approved by the OAL, the final regulation text will become enforceable.

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California: Cal/OSHA Publishes Guidance on Reporting Requirements for COVID-19 on Safety Logs

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All CA Employers

EFFECTIVE

June 3, 2020

QUESTIONS?

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Cal/OSHA, California’s state-specific workplace safety agency, recently published an FAQ regarding the recording and reporting requirements for COVID-19 cases.  The FAQ confirms that employers must record COVID-19 illnesses if they are work-related and meet certain criteria.

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Idaho: New Distracted Driving Law, Update to Workers’ Comp Exemption Deadline

APPLIES TO

All Employers with ID Employees

EFFECTIVE

July 1, 2020

QUESTIONS?

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July brings two new updates for Idaho employers with regard to driving and workers’ compensation coverage.

Cell Phone Use and Distracted Driving Prohibitions. Effective July 1, 2020, an individual may not operate a motor vehicle while using a mobile electronic device.  Exceptions to this new law are for public or consumer-owned utility employee or contractors acting within the scope of their employment when responding to a utility emergency. Infractions are punishable by monetary fines; however, infractions will not be issued until January 1, 2021.  Warnings may be given after July 1, 2020, with fines following infractions after the new year.

Unemployment and Workers’ Compensation.  Also effective July 1, 2020, the Idaho Code has been updated to add a “good cause” provision to the unemployment and experience rate calculation.  Situations “with good cause but for reasons not attributable to such covered employer” have been added to the list under which no charge will be made to the covered employer’s account.

Additionally, the deadline to submit forms to exempt corporate officers from workers’ compensation coverage has been changed.  Employers must submit the exemption forms by March 31st.  The forms remain in effect for at least two calendar years.

  1. Have driving policies updated to reflect lawful cell phone usage.
  2. Review workers’ compensation updates with your carrier.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

Waterloo, Iowa: Expansive Ban-the-Box Now in Effect

APPLIES TO

All Employers with 15+ Waterloo, IA Employees

EFFECTIVE

July 1, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Despite legal challenges, the City of Waterloo’s Ban-the-Box Ordinance went into effect as scheduled on July 1, 2020.  It prohibits employers from inquiring in any manner into an applicant’s criminal history prior to a conditional offer of employment, unless the applicant voluntarily discloses such information before an offer is made.  The ordinance also places limitations on when employers can make employment decisions or rescind offers of employment.

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Chicago, IL: New Amendments Expand Paid Sick Leave to More Employees

APPLIES TO

All Employers with 1+ IL Employee

EFFECTIVE

July 1, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Illinois has had a statewide paid sick leave ordinance in place since July 1, 2017, which has since been amended multiple times.  The Chicago City Council recently approved Substitute Ordinance 2020-2343, which contains anti-retaliation provisions related to COVID-19 and also revises amendments previously enacted in December 2019.  The Substitute Ordinance broadens the applicability of Chicago’s paid sick leave provisions to more classes of employees, thereby expanding employer responsibilities.

Under the original ordinance and the December 2019 amendments, certain types of employees were not covered by the paid sick leave ordinance.  This includes:

  1. Outside salespeople;
  2. Members of a religious corporation or organization;
  3. Students attending or employed by an accredited Illinois college or university; and
  4. Motor carriers regulated by the U.S. Secretary of Transportation or the State of Illinois.

Substitute Ordinance 2020-2343 now covers these employees under the paid sick leave ordinance, meaning they must be provided applicable paid sick leave and given notice of their rights alongside the first paycheck subject to the paid sick leave ordinance.

Action Items

  1. Review the text of the ordinance here.
  2. Review paid sick leave set-up and personnel list for compliance with the amended regulations.
  3. Provide employees with the required notice.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase