The regulatory environment is continually changing in response to the COVID-19 pandemic and we’re working on keeping you as informed as possible. There may be potential discrepancies as COVID-19 regulatory changes continue to occur. If you believe there may be a discrepancy affecting you or your business, you should contact your local government and/or competent local legal counsel for further advice.
U.S. Centers for Disease Control & Prevention Updates
- NEW: NIOSH Releases Hazard Communication for Disinfectants Used Against Viruses: Health Hazards and Protective Measures
- CDC Releases Reopening Criteria for Workplaces
- CDC Releases Reopening Decision Trees for Industries
- CDC Releases Guidance on Reopening Your Workplace
- CDC Recommends Wearing Face Coverings in Certain Circumstances
- CDC Relaxes Return to Work Standards Following COVID-19 Exposure
- CDC Issues Guidance to Curb the Spread of COVID-19 from Large Gatherings
U.S. Department of Homeland Security Updates
- U.S. Citizenship and Immigration Services Temporarily Suspends Premium Processing for I-129 and I-140 Forms
- Department of Homeland Security Temporarily Relaxes I-9 Review Requirements
- Travel Restrictions Due to Coronavirus
U.S. Department of Labor (DOL) Updates
- NEW: Employee Online Tool Helps Determine Eligibility for COVID-19 Paid Sick Leave
- New Guidance on Fluctuating Workweek Overtime Rules
- DOL and IRS Extend COBRA Payment Periods
- DOL Releases USERRA Guidance For COVID-19
- DOL Specifies Which Individuals Are Covered by Pandemic Unemployment Assistance
- Department of Labor Releases Guidance on COVID-19 Related FLSA and FMLA
- Additional Guidance from the Department of Labor on Unemployment Eligibility
U.S. Department of Transportation (DOT) Updates
- Pre-Employment Substance Abuse Tests Temporarily Waived for CMV Light Drivers
- Navigating I-9 Form, E-Verify, and Expired/Extended Driver’s Licenses During COVID-19
- DOT Releases Guidance on Drug and Alcohol Testing During Pandemic
- Employers Can’t Require Antibody Tests to Return to Work
- New Guidance Cautions Against Age Discrimination As Businesses Return to Work
- Employers May Require COVID-19 Tests
- EEOC Delays 2019 EEO-1 Component 1 Data Collection to 2021
- EEOC Clarifies Impact of Coronavirus on American Disabilities Act and the Rehabilitation Act
Internal Revenue Service (IRS) Updates
- NEW: CARES Act Retirement Plan Relief
- IRS Explains Employer Tax Credits for Employee FFCRA Paid Leave
- 2020 Tax Deadlines Extended from April 15 to July 15
- High-Deductible Insurance Plans to Cover Costs of COVID-19 Testing and Treatment Before Patients Reach Deductible
U.S. Occupational Safety and Health Administration (OSHA) Updates
- Return to Work Guidance Released
- New FAQs About Face Coverings
- OSHA Updates COVID-19 Enforcement Guidance and Recordkeeping Requirements
- OSHA Releases Industry-Specific Reopening Guidance
- OSHA Relaxes N95 Mask Standards In Light of Shortage
- OSHA Publishes New Poster about Reducing Exposure to Coronavirus in the Workplace
- OSHA Specifies When Employers Must Report Presence of COVID-19
- NEW: Travel to U.S. Prohibited, Visas Suspended
- Federal Government Releases Guidelines for Reopening for Business
- President Trump Issues Declaration of National Emergency for COVID-19
NEW: NIOSH Releases Hazard Communication for Disinfectants Used Against Viruses: Health Hazards and Protective Measures
The National Institute for Occupational Safety and Health recently reviewed health hazards that could be the result of cleaning agents and the recommended respiratory protection for workers using the products.
In a new guidance document, the CDC outlined reopening criteria for workplaces.
Of particular interest to employees is the appendix (starting on page 38) that outlines reopening measures and safety protocols for 5 different workplace settings like child care centers, schools and camps, restaurants and bars, transportation, and businesses with high-risk employees.
All employers are encouraged to enforce sanitation and hygiene practices, ensure ventilation systems are in proper working order, perform daily health checks, provide flexible sick leave, and offer teleworking to employees who travel from areas with high infection rates.
***Note: This document also can be found in Vera Suite*** The COVID 19 CDC Activities and Initiatives Supporting the COVID 19 Response is located in the Policies & Documents > HR Documents > Toolkit – Guides in VeraHR.
The COVID 19 CDC Activities and Initiatives Supporting the COVID 19 Response is located in the Policies & Documents > Compliance Documents > Coronavirus Disease 2019 (COVID-19) in VeraEHS/F&I.
To help guide employers through the decision process for reopening, the CDC released industry-specific guidance for workplaces, transportation, restaurants and bars, child care, schools, and camps/youth programs.
Each decision tree includes a series of questions for employers and organizations to consider before they begin reopening and returning employees to work. Employers must ensure they’re safe to reopen and that they’ve put plans in place to protect all employees, including vulnerable populations. Each decision tree is meant to work in conjunction with state and local orders.
To help businesses navigate reopening their businesses safely, the U.S. Centers for Disease Control and Prevention (CDC) outlined a decision tree to use in accordance with state and local health departments.
The three questions employers should ask based on the decision tree are:
- Should you consider opening?
- Are recommended safety actions in place?
- Is ongoing monitoring in place?
Each question has several considerations for employers to review as they plan their reopening. The big takeaway is that reopening your business won’t be a small task, and keeping your employees and workplace safe is an ongoing process even after you reopen.
- Develop an infectious disease or pandemic preparedness plan and how your business will implement the plan and continue to monitor it.
- Check out some of KPA’s other guidance for planning your business’s reopening here.
Who: Employers with workers who have been exposed to or contracted COVID-19
When: Effective Immediately
What: Critical infrastructure workers can continue working after being exposed to COVID-19 provided they are symptom-free and the employer takes steps to keep the employee and community safe. The previous recommendation stated the employees should be sent home for up to 14 days after a confirmed or suspected case of COVID-19.
Additional precautions that employers can take with a returning employee is to monitor the employee’s health for any symptoms or to take the individual’s temperature and to disinfect and clean areas like offices, bathrooms, equipment, etc.
- If your business is considered a critical infrastructure by your state, local, or the federal government, review and update your procedures for employees with confirmed or suspected cases of COVID-19 back to work.
- Review your procedures with your legal counsel to ensure their compliance with all regulations and requirements.
Who: All employers and employees
When: Effective -April 3, 2020
What: In response to the COVID-19 pandemic, the Centers for Disease Control as issued a new recommendation to wear a face covering in settings where social distancing is difficult to maintain, such as grocery stores and public transit. This is especially true in areas where there is a significant rate of community-based transmission.
The face coverings do not protect an employee from getting the disease. The FDA has stated that, “…a face mask, by design, does not filter or block very small particles in the air that may be transmitted by coughs, sneezes, or certain medical procedures.” The masks are to help keep sick and asymptomatic people from potentially spreading the disease through droplets exhaled during talking, sneezing, or coughing when they are in close proximity to others.
Cloth face coverings are a voluntary measure. The CDC continues to stress hand-washing and social distancing measures as the primary means of preventing spread of the disease.
If employers require employees to wear face coverings at work, they could be considered personal protective equipment (PPE). Employers should consider following the applicable PPE regulations, including a hazard analysis. In addition, OSHA requires PPE equipment to “protect the affected employee from the hazards identified in the hazard assessment.”
- Consider the risk category your employees are in.
- If necessary, conduct a hazard analysis of the workplace environment to determine if face coverings should be required. If so, create a plan to provide the required equipment and training to employees.
Around the middle of March, the CDC released guidance to help stop the spread of COVID-19. Part of the recommendations included:
- Eliminating large crowds and gatherings of 50 people or more; and
- Discouraging handshakes or any hand-to-hand contact.
The CDC also provided additional information on whether to postpone or cancel events, what to consider when the pandemic ends, and how to plan for gatherings in the midst of the pandemic.
- As states start to reopen, consider how your business will address gatherings and participation in large-scale events.
U.S. Citizenship and Immigration Services Temporarily Suspends Premium Processing for I-129 and I-140 Forms
Who: Employers seeking petitions for employees using I-129 and I-140 petitions
When: March 20, 2020
What: The U.S. Citizenship and Immigration Services (USCIS) has temporarily stopped processing new requests for premium processing Form I-129, Petition for Nonimmigrant Worker, and Form I-140, Immigrant Petition for Alien Worker. USCIS will continue to process previously accepted I-907 Request for Premium Processing forms. It will refund the filing fee ($1,440) if it doesn’t fulfill a premium processing request for a previously filed Form I-129 or Form I-140 within the 15-calendar-day period.
The visa categories affected are all those included in the I-129 and I-140 premium process petitions: E-1, EB-1, EB-2, EB-3, E-2, H-1B, H-2B, H-3, L-1A, L-1B, LZ, O-1 O-2, P-1, P-1S, P-2, P-2S, P-3S, Q-1, R-1, TN-1, and TN-2.
This temporary suspension won’t affect the H-1B cap lottery, and selected registrants should be notified by March 31. However, in the absence of the premium processing, petitioners likely won’t receive petition decisions until late May at the earliest. Companies using the premium processing petition won’t be able to easily communicate with USCIS representatives about their case status or make corrections.
For employees whose status may expire or be impacted by this change, they are eligible for a 240-day extension and shouldn’t be affected by the temporary premium processing suspension.
Review and identify any premium processing petitions and inform the affected workers that the premium processing isn’t currently available.
Who: Employer who are operating remote workforces
When: Effective Immediately until May 19, 2020, or within 3 business days after the national emergency ends
Employers who are operating entirely in a remote program temporarily don’t need to review I-9 forms in-person with new workers. Employers are required to review Section 2 of the I-9 form still, whether through video conference, fax, or email, and they will need to make a note of “COVID-19” in the “additional information” field. They must also have copies of the documents within 3 business days. Employers must provide all new employees with their remote onboarding and telework policy.
When this temporary change has ended, all new employees who were onboarded during this time must report to their employer within 3 business days for the in-person verification and employment eligibility documentation. Employers will need to make a note of the date of the document’s physical examination in Section 2.
This temporary change doesn’t apply to any employees who are on-site at the employer’s location. Meaning, the I-9 review requirement still applies to those employees who are physically present at a work location.
- Review your current onboarding practices and adapt them to this temporary change. Ensure that onboarding still includes the review of the I-9 form; physical documents are obtained.
- Communicate with other hiring managers about this change and how to update their current practices.
- Be prepared to communicate with all new employees, to bring their physical documents, when regular operations resume.
Who: All foreign nationals (with limited exceptions), both immigrant and non-immigrant who were physically present in China, Iran, and European countries in the Schengen area as well as the United Kingdom and Ireland during the previous 14 days to enter.
Various travel restrictions from multiple countries into the U.S. has begun:
- March 11, 2020, for Europe
- March 16, 2020, for the United Kingdom and Ireland
Additionally, on March 21, 2020, the U.S. borders to Mexico and Canada except for “essential travel.” This restriction will be in place until April 20, 2020.
What: The United States has issued a ban preventing foreign nationals who have visited high-risk countries from entering the U.S. Foreign nationals who are lawful permanent residents, spouses, parents, or guardians of U.S. citizens or legal permanent residents and U.S. military personnel are exempt from this rule. Other exemptions are also granted for those who have received a government invitation to enter the U.S. for a reason related to the handling of COVID-19.
Essential travel between Canada and Mexico is defined as any U.S. Citizen returning to the states, anyone receiving medical attention or education in the U.S., anyone who is working in the U.S., or providing an emergency response or public health services, anyone engaged in lawful trade, military or government service.
- Ensure all employees are aware of the restrictions and requirements of the ban while it is in effect.
- Assess the impact on any employees currently out of the country on travel and advise them accordingly.
- Draft a policy to address these challenges.
The DOL launched an online tool to help workers figure out if they qualify for paid sick leave or extended FMLA to cover any time away from work resulting from COVID-19.
The tool uses the Families First Coronavirus Response Act’s paid leave provisions to determine if the employer qualifies and which type of leave the worker can use.
Determining Your Eligibility (the online tool)
To help employers navigate the COVID-19 workplace, the DOL has issued a final rule, “Fluctuating Workweek Method of Computing Overtime,” that relaxes the way that overtime is calculated for salaried, nonexempt employees who have fluctuating work schedules.
Employees who are entitled to overtime pay will receive a fixed weekly salary that divides the number of hours the employee actually worked to determine that week’s base hourly rate. The employee then received an additional 0.5 times their base rate for each hour beyond the 40-hour workweek.
Employers can continue to pay bonuses, premium payments, or other types of pay without jeopardizing the workweek method of pay.
Previously, this rule was called “Fixed Salary For Fluctuating Hours” and didn’t include employees who received bonuses or other incentivized pay, and must comply with state overtime laws. Employers should check with their state laws to ensure that they can use the fluctuating workweek. For example, Alaska, California, New Mexico, and Pennsylvania don’t allow the fluctuating workweek.
Who: All employers offering COBRA benefits
When: Effective Immediately
What: Considering the coronavirus, the U.S. Department of Labor and the Internal Revenue Service have extended the deadlines for certain employee benefits, elections, and COBRA-payment periods. With this extension, notices, elections, and pay periods will resume 60 days after the national state of emergency has ended.
Among the extensions include qualifying individuals will have up to 120 days to elect COBRA, following the end of the national state of emergency. COBRA premium payments won’t be due for 90 days after the end of the emergency.
The new model notices (on page 2) and the accompanying FAQs include information about the interaction between COBRA and Medicare. Individuals may opt to enroll in Medicare when their health insurance ends, even if they didn’t enroll during the Medicare enrollment period, there is a special 8-month enrollment period beginning a month after the termination date or the month after the group health plan (through employment) ends.
- Review the COBRA Model Notices and FAQs
- Update your current COBRA procedures based on your current business plans
- Identify any employees that you have already communicated COBRA information and deadlines too and communicate to them about the new changes.
Who: Employers with employees who serve in the National Guard or Reserves
What: The U.S. Department of Labor’s Veterans’ Employment and Training Service released a factsheet for employers about the impact of the Uniformed Services Employment and Reemployment Rights Act (USERRA) during COVID-19.
Employers should note:
- There are no new USERRA obligations to consider under COVID-19.
- Employers should remember employment protections and reemployment rights under USERRA.
- USERRA covers any employees called to active duty who are members of the National Guard or Reserves.
- Employers should address state regulations if an employee is activated through state law.
- Employees may be furloughed or laid off when returning to work from active duty. Active duty employees can be reemployed to their position if it would have been available regardless of their absence due to their service.
- Employers can’t delay reemploying a worker coming back from uniformed service if there’s concern about exposure to COVID-19.
- When making decisions about service member (accommodation, reemployment, etc.), be sure to consult with an attorney.
- If you have concerns about a reemployed worker, take reasonable actions to restore the worker to their position, including paid leave, teleworking, or placing the worker in a similar position during quarantine before restoring them to their proper position.
Who: All employers and employees
When: Guidance published April 5, 2020
What: The Department of Labor (DOL) issued the Unemployment Insurance Program Letter 16-20 to clarify which employees are covered by the Pandemic Unemployment Assistance (PUA) program authorized by the CARES Act of 2020. To be eligible for PUA, the individual must self-certify that s/he is unemployed, partially unemployed, or unable to work due to one of the specified COVID-19–related reasons. The guidance specifies that leaving a job without good cause in order to obtain benefits may be considered fraud.
Covered individuals include those who:
- Are not eligible for benefits under the regular state unemployment compensation system;
- Have exhausted all of their benefits under the Pandemic Unemployment Compensation (PUC) program;
- Are self-employed;
- Are seeking part-time employment; and
- Are lacking sufficient work history.
Individuals who have the ability to telework with pay and those receiving paid leave benefits are not eligible for PUA.
States determine the amount of unemployment or partial compensation benefits, and the individual is eligible for up to 39 weeks of pay. Eligible individuals also receive the supplemental payment of $600 for every week the worker is unemployed, partially unemployed, or unable to work (ending July 31, 2020).
- Do not promise individuals that they will receive unemployment compensation. The state will determine eligibility, compensation, and duration of compensation.
Who: Employers subject to the Family Medical Leave Act (FMLA); Employers subject to the Fair Labor Standards Act (FLSA)
When: March 9, 2020
What: The Department of Labor issued new guidance offering clarity on two vital federal regulations that may be affected during the pandemic COVID-19.
Key points of clarity for FMLA included:
- Leave taken to avoid exposure to COVID-19 is not counted as FMLA
- Eligible employees are only able to take unpaid FMLA leave for their COVID-19 or to care for a family member with COVID-19 only if the infected person suffers complications creating a “serious health condition.”
- The DOL still encourages flexible leave policies if they or a family member contract the virus to slow the spread.
For the FLSA:
- Employers do not need to pay non-exempt employees for hours they do not work, even when due to a business closure due to COVID-19.
- Salaried, exempt staff may be required by an employer to take vacation or paid time off in the case of an office closure from COVID-19. If the exempt employee does not have vacation or PTO available, the employee must still receive full guaranteed salary for a week when work is performed.
- Telework can be encouraged or required for infection control or prevention.
- Non-exempt employees can be asked to work extra hours as long as they are paid minimum wage and overtime for any hours over 40.
Assess current leave policies and Fair Labor Standards Act related policies to ensure alignment with current guidance from the Department of Labor.
Who: Employers affected by COVID-19 related employment issues
When: March 12, 2020
The U.S. Department of Labor provided specific scenarios to help states assess unemployment compensation benefits in light of the challenges faced by employers caused by COVID-19. The guidance included specific information about flexibilities under federal law for states to adjust unemployment insurance programs based on the circumstances of the global pandemic. The guidance notes that states have the option to pay unemployment benefits in cases such as:
- An employer must temporarily cease operations, preventing employees from working due to COVID-19
- When an employee is quarantined and expects to return to work after the quarantine period ends
- If an employee leaves employment to reasonably avoid exposure or infection or to care for an ill family member.
Importantly, the guidance also points out that in cases of COVID-19 related impacts, federal law does not require the employee to resign in order to receive benefits. States may also waive their unemployment waiting periods if they choose to. Finally, the guidance cites the benefits of work sharing or short-term compensation (STC) programs and encourages employers to develop short term compensation plans where STC is available (28 states). STC allows employers to avoid layoffs by reducing work hours for employees while those employees collect partial unemployment payments.
- Understand the state-administered unemployment insurance program, and how the state plans to administer that program in light of the COVID-19 pandemic.
- Inform employees of relevant COVID-19 related policies for unemployment eligibility.
Due to COVID-19, the Federal Motor Carriers Safety Administration has waived certain commercial motor vehicle pre-employment test screenings from June 5, 2020, to September 30, 2020. Employers may temporarily eliminate pre-employment testing for drivers who recently participated in a controlled substance testing program within 90 days of the hire or rehire date. The previous rule applied to drivers who had participated in a controlled substance testing program within 30 days of hire or rehire date.
Employers should still implement other applicable testing like the Drug and Alcohol Clearinghouse, background checks of controlled substance and alcohol testing history, and any other state or local orders.
Who: Employers with workers requiring I-9 forms and with job tasks that involve handling vehicles
When: Effective Immediately
What: Despite closing physical Motor Vehicle Department office locations, several states extended the expiration date of qualified driver’s licenses. A driver’s license that appears expired on its face, but is valid because of an extension, can be used as proof of identity for the Form I-9 document.
- Confirm that your state has provided automatic extensions and the length of extension.
- Inspect the employee’s document with the employee present.
- When documenting an expired license, enter the expiration date in Section 2 and enter “COVID-19 EXT” as Additional Information.
- If you’re filling out Section 3 for Reverification, add “COVID-19 EXT” in the Additional Information field or in the margin.
- If the state has extended the expiration dates, employers should enter the original expiration date on the employee’s license.
E-Verify Q&A Related to Temporary Policies for Form I-9 and E-Verify
Who: All DOT-regulated employers and employees
When: Effective March 23, 2020
What: The DOT has issued guidance to DOT-regulated employers regarding how to comply with applicable DOT training and testing requirements during the COVID-19 pandemic.
Employers should make all reasonable efforts to continue testing and training as usual. If fixed-site collection facilities are unavailable, consider mobile collection services. Document the reasons why tests or training cannot be completed due to quarantine or other COVID-19–related restrictions. Conduct the tests and complete the training at a later date when feasible.
The DOT asks employers to be sensitive to the needs of applicants and employees who are afraid to go to the testing site due to COVID-19 and verify with the collection site that it has minimized the risk of exposure to the virus.
If testing is unavailable, or if the applicant/employee refuses testing, employers must continue to follow the underlying applicable regulations. A prospective employee who must have a negative pre-employment drug test result, for example, may be hired but may not perform any DOT safety-sensitive functions until passing the drug test.
- Follow the regulations applicable to your organization.
- Revisit your back-up plan to ensure that your alternate modes of testing and training account for circumstances such as these, where collectors and collection sites may be unavailable due to a national emergency.
As part of a recent updated guidance, the EEOC clarified that employers that test for COVID-19 antibodies are in violation of the Americans with Disabilities Act. Employers may test for current cases of COVID-19.
The EEOC states that an antibody test is considered a medical evaluation under the ADA and doesn’t meet the definition of “job related and consistent with business necessity.”
Additionally, pregnant workers can’t be discriminated against when returning to work, although accommodations may be made for them as long as they are consistent and non-discriminatory.
Employers aren’t required to accommodate employees that don’t have a disability, even in the case of an employee who doesn’t want to risk exposing a family member to COVID-19 who is part of a vulnerable population. However, employers may choose to make accommodations for them as long as they are consistent and non-discriminatory.
In recent edits to the EEOC’s COVID-19 FAQs, employers are reminded to not prevent older employees ages 65 and up, from returning to work. To do so is in violation of the Age Discrimination in Employment Act (ADEA) that states employers are banned from discriminating against people aged 40 and older.
The ADEA doesn’t include reasonable accommodation like the Americans with Disabilities Act (ADA) but employers have the right under federal law to provide accommodations for employers age 65 and older, even if workers age 40 to 64 are treated differently or less favorably. Additionally, workers age 65 and older may also have medical conditions that bring them under the protections of the ADA.
Be sure to consult with legal counsel as you address employee concerns when returning to work.
Who: All employers
When: Effective Immediately
What: The Equal Employment Opportunity Commission issued guidance stating that as employers work to prevent COVID-19 from entering their facilities, they may require employees be tested before entering the workplace, regardless of symptoms.
The Americans with Disabilities Act requires that any mandatory testing must be “job related and consistent with business necessity.” The EEOC correlated this phrasing of the ADA with the risk that COVID-19 poses to the health of others in the workplace. Employers may also ask about symptoms that health authorities have stated are associated with COVID-19.
Testing isn’t meant to take the place of other hygiene and sanitation protocols that are recommended by other federal and local government agencies.
- If your business decides to test employees for COVID-19, develop and implement a testing process and procedure that isn’t discriminatory and meets all requirements for private health information. See KPA’s temperature check considerations on our return to work safely page.
- Use a COVID-19 test that is reliable and accurate. The test you use might also come with additional requirements, e.g., processing by a certified laboratory.
- Identify who will administer the tests, e.g., a nurse, a third-party vendor, etc.
- Be sure to review your plan and procedure with legal counsel to verify it meets all federal and state government requirements, and especially privacy requirements.
- Employers with 100+ employees
- Federal contractors with 50+ employees and contracts of $50,000+
When: Effective Immediately
What: The Equal Employment Opportunity Commission (EEOC) is delaying the collection of 2019 EEO-1 Component 1 information until March 2021. The decision comes as a response to the COVID-19 pandemic, in hopes that the new timing will allow filers will have a better ability to submit timely, accurate, valid, and reliable data. Employers are required by the EEOC to submit their number of employees by job category, race, ethnicity, and sex.
Although this delay still needs to be finalized by the Office of Management and Budget, impacted employers can expect to see additional notifications regarding the precise date that the surveys will open.
It should be noted that the collection of 2020 EEO-3 and EEO-5 data has also been delayed to March 2021.
- Prepare your data for submission in 2021.
Who: All employers
When: Effective Immediately
The Equal Employment Opportunity Commission (EEOC) issued clarifying guidance on how employers can navigate the issue of COVID-19 in the workplace with their employees. The guidance provided is consistent with the Commission’s previous guidance during other pandemics, including H1N1.
Without violating the American Disabilities Act or the Rehabilitation Act, employers can:
- Ask workers if they are feeling any COVID-19 symptoms, as long as the individual’s information is kept as a confidential medical record.
- Take employees’ body temperature (be advised that there may be additional state privacy regulations that are also in play when taking employees’ temperatures).
- Instruct employees who experience symptoms of COVID-19 to go home or to stay home.
- Require returning employees to obtain and provide a doctor’s note (or equivalent documentation, such as an email certification) that states they are fit to return to work.
- Screen all job candidates for COVID-19 symptoms after making a conditional job offer, provided that the practice is consistent with all incoming employees for the same type of job.
- Withdraw a job offer where a candidate has symptoms of or tests positive for COVID-19, as long as the job states it must start immediately.
- For employees that aren’t yet working from home regularly check in with them about their health.
- Remind employees that if they are experiencing any symptoms consistent with COVID-19, they should stay home.
- Review your current job offers and revise your onboarding status based to include consistent screening for COVID-19 symptoms.
Under Notice 2020-50, the IRS has expanded the number of qualified taxpayers who can access their retirement plans using provisions under the CARES Act. The intention is for retirement participants to have better access to plan loans and distributions.
Taxpayer eligibility has expanded to include those who have:
- Seen a reduction in pay, a job offer rescinded, or a delayed start date because of COVID-19.
- A spouse or other member of the household who had a reduction in pay, a job offer rescinded, a delayed start date, or has been quarantined, laid off, furloughed, or received a reduction in hours because of COVID-19, or can’t work because of a lack of child care.
- A business owned or operated by a spouse or household member that closed or had to operate on reduced hours because of COVID-19.
The loan doesn’t have to align with the direct financial impact COVID-19 has on the individual, employees don’t need to provide proof.
The Notice provides details for employers to use when reporting next year’s 1099 forms.
Who: Small and mid-sized businesses and their employees
When: FFCRA effective April 1, 2020; new IRS guidance published March 31, 2020
What: The IRS has published new guidance that explains how employers can claim the tax credits offered in the Families First Coronavirus Response Act (FFCRA) related to giving employees paid leave. Among other issues, the agency specified how to determine the amount of the credits, how to document an employee’s eligibility for the credit, and how to claim the credit.
To claim the credit, employers must obtain written requests from employees who are requesting Emergency Paid Sick Leave or Emergency FMLA leave for COVID-19–related reasons any time during the period of April 1, 2020 through December 31, 2020. Documentation must include:
- Employee documentation supporting the request for leave (see FAQ 44 through 46 of the IRS Guidance);
- How you determined the amount of qualified sick wages paid (see FAQ 20 through 24) and family leave wages you paid (see FAQ 25 through 30) to each employee, including records of work, telework, and qualified family leave;
- How you determined the amount of qualified health-plan expenses that the employer allocated to wages (see FAQ 31 through 36 for computation methods);
- Copies of any completed Forms 7200 Advance of Employer Credits Due to COVID-19 that you submit to the IRS; and
- Copies of the completed Forms 941, Employer’s Quarterly Federal Tax Return, that you submit to the IRS.
- Create your written request forms for employees who request leave under these programs. Add the statement, “Additional documentation may be required,” to your forms in case the IRS further clarifies this issue in the future.
- If your business is eligible for the credit, you may immediately begin reducing the federal employment taxes you deposit with the IRS.
- Check IRS.gov for the latest information.
High-Deductible Insurance Plans to Cover Costs of COVID-19 Testing and Treatment Before Patients Reach Deductible
Who: Employers whose employees are enrolled in high-deductible health plans
When: March 11, 2020
What: Although now required by the Families First Coronavirus Response Act, the Internal Revenue Service (IRS) initially issued guidance in response to the COVID-19 health emergency that allows designated high-deductible health plans (HDHPs) to cover the costs of testing and treatment for COVID-19 with a smaller deductible or with no deductible at all, and included the use of telehealth services. This flexibility means that COVID-19 related medical care costs can be offered at a low or no cost for insured employees, without impacting minimum deductible and out-of-pocket expense maximums for the employer.
- Contact your HDHP claims administrator or insurer to discuss options for implementation
- Work with the HDHP provider to generate a list of COVID-19 related medical expenses that will be covered by such a change
- Communicate any changes with respect to COVID-19 related medical services to employees to make sure they aren’t discouraged from seeking testing and treatment due to cost
Who: All individuals
When: July 15, 2020
What: The U.S. Treasury and Internal Revenue Service have deferred the federal income tax due date from April 15, 2020, to July 15, 2020, without incurring interest, penalty, or an additional tax based on a failure to pay. This change impacts the 2019 taxable year’s federal income tax payments and 2020 taxable year’s federal estimated income tax payments of up to $10 Million for a C corporation or a group of C corporations, and up to $1 Million in an individual’s case.
The deferral doesn’t impact state and local tax deadlines or federal non-income tax deadlines.
- If you are filing as a C corporation or a group of C corporations, review your current tax filing status and be sure to file on time.
- Research whether your state income tax filing has changed or if you must still meet the original deadline.
Who: All employers (employers with 10 or fewer employees are not required to record cases, but they must report any illness that results in death, in-patient hospitalization, amputation, or loss of an eye.)
When: May 26, 2020
What: To ensure that employers are protecting their employees, OSHA has revised its enforcement policies by increasing in-person inspections of all workplaces. OSHA is also revising its enforcement policy for recording COVID-19 cases.
As non-essential businesses begin reopening based on state and local guidance, the need for personal protective equipment is more widespread, and the risk of workplace transmission varies by categories of industry and type of workplace. Therefore, OSHA will be increasing in-person inspections to ensure compliance.
Inspections will vary by industry risk (from very high to low), the nature of a complaint(s), multiple complaints, or other reasons like a random inspection, though the latter will be less frequent in low-risk industries. Low-risk industries are businesses where employees aren’t expected or at a high risk of coming into contact with a confirmed COVID-19 case or frequent, close contact with the general public.
OSHA will be prioritizing COVID-19 inspections.
Under the new policy, OSHA will be enforcing COVID-19 illness-related recordkeeping requirements of 29 CFR § 1904. Employers must make a reasonable effort to determine if the COVID-19 case is work-related, using the evidence available to them.
A reasonable effort may include conversations with the employee about how they think they contracted the virus, about activities outside of work that may have exposed the employee, or about reviewing the work environment with them for possible areas of exposure.
- The case, as defined by the CDC, is confirmed.
- The employee was exposed to COVID-19 in the work environment as defined by 29 CFR § 1904.5.
- The case meets general OSHA recordkeeping standards, as defined by 29 CFR § 1904.7 because it resulted in death, days away from work, restricted work, job transfer, or medical treatment, or loss of consciousness.
A recorded COVID-19 case in the workplace doesn’t mean an OSHA requirement was violated. OSHA will take into consideration the information available before and after the decision about work-relatedness was made.
Factors in favor of a work-related, reportable case:
- Several confirmed cases occur among employees who work closely together, without another explanation for the cases.
- A case(s) occurs shortly after “lengthy, close” exposure to someone at the workplace, without another explanation for the case.
- A worker’s job often puts them in close contact with a public that has a significant number of cases, without another explanation for the worker’s case.
Factors that aren’t favorable of a work-related, reportable case:
- A single case occurs at the workplace, and the worker doesn’t interact with the public.
- The worker interacted with a close family member, significant other, or friend who had COVID-19 during the time the worker may have been infected.
What Should You Do:
- When you become aware of a COVID-19 case in your workplace, communicate and talk with the impacted employee about their possible exposure in the workplace
- Consult with legal counsel about the case and whether it may be recordable.
- Be sure to keep all of your internal records about incidents, training, etc. up-to-date and ready in the case of an OSHA inspection.
- Follow all applicable privacy and confidentiality laws and regulations when handling employee records and when communicating with employees.
In a 3-Stage Roadmap, OSHA outlines how non-essential businesses can begin to plan for and reopen their businesses:
- Stage 1: Teleworking and Accommodations for High-Risk Employees
- Stage 2: Easing Restrictions for Employees in the Workplace
- Stage 3: Eliminating Restrictions
The guidance recommends conducting a workplace hazard assessment to identify potential COVID-19 exposure areas for each job category and protective measures. Workplace testing, temperature checks, and health screenings are acceptable if conducted transparently with employees, confidentially, and without retaliation. The agency strongly encouraged that employees check their own temperatures at home instead of at work, and that businesses be accommodating with their sick leave policies.
Businesses don’t have to keep records of temperature checks and health screenings. If they choose to keep records, businesses must comply with the Access to Employee Exposures and Medical Records and not to violate other regulations like blood-borne pathogens standards.
Cloth face coverings are recommended by OSHA but aren’t considered personal protective equipment and aren’t subject to fit testing and training. They can’t be used in place of N95 masks.
In a new Frequently Asked Questions document, OSHA outlines the differences between cloth, respirator, and surgical mask face coverings.
Of note, OSHA clarifies cloth face coverings aren’t considered personal protective equipment and it isn’t required that employers provide face coverings, but it is an option to help control the spread of workplace-related infections. OSHA generally recommends wearing cloth face coverings in the workplace. Employers should evaluate the use of cloth face coverings for particular conditions or job tasks where it might not be appropriate, and a surgical mask or face shield should be worn.
OSHA reminds employers that they are required to meet the General Duty Clause that mandates they make reasonable and effective effort to create a safe and hazard-free environment.
Although this is OSHA’s guidance, be sure to check your state and local orders about face covering requirements that you must adhere to.
Who: Employers in Manufacturing, Construction, Retail, Restaurants, and Meatpacking
When: Effective Immediately
What: To help businesses navigate reopening workplaces, OSHA has released guidance for several industries including Manufacturing, Construction, Retail (including pharmacies and grocery stores), Restaurants. Additionally, in partnership with the CDC, OSHA also released guidance for the meatpacking and poultry industry.
There are several core recommendations for all of the industries including:
- Employees staying home if they’re sick;
- Permitting the use of face masks to prevent the spread of COVID-19;
- Promoting respiratory etiquette, like properly covering coughs and sneezes;
- Encouraging personal hygiene, like handwashing, and providing employees with antibacterial substances and soap and water;
- Using EPA-approved List N disinfectants; and
- Promoting a safety culture where employees can report health and safety concerns.
- Read through the industry-specific guidance to ensure your COVID-19 response and prevention planning aligns with OSHA’s recommendations.
- Continue to check OSHA’s website for updated COVID-19 guidance and resources.
Who: Employers with workers required to wear N95 masks
When: Effective Immediately
What: The U.S. Occupational Safety and Health Administration (OSHA) released guidance that employers may consider extending the use or reusing N95 masks, or using masks that are passed an expiration date for employees that require respiratory protection. This guidance applies to all industries and all workplaces that must adhere to 29 C.F.R. § 1910.134.
Although this is federal guidance, OSHA-approved state plans may have differing regulations, and employers should consult with their legal counsel.
N95 Mask Considerations:
- 8 hours of continuous use is acceptable, unless the structure of the mask is compromised.
- Limit reuse to 5 times or follow the N95 manufacturer’s guidelines.
- Alert employees about the use of reused or expired masks.
- Ensure employees conduct a seal check every time they put on the mask. If the mask doesn’t pass check, it shouldn’t be used.
- Train employees on what to look for in a compromised mask.
- Be sure employees are trained in how to properly don, doff, and store a reused mask to ensure it’s not compromised.
- Identify when and how a mask will be considered contaminated and discarded.
- If you’re not using an N95 mask, be sure your respiratory protection is NIOSH-approved.
- Update your respiratory protection plan to accommodate these changes and continue to manage your program and ensure it meets OSHA’s respiratory protection standards.
Who: All employees and employers
When: Effective April 6, 2020
What: The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has published a new workplace poster with advice on how to minimize workers’ risk of exposure to COVID-19. This is “the latest effort by OSHA to educate and protect America’s workers and employers during the coronavirus pandemic.”
Recommendations include encouraging sick workers to stay at home, establishing flexible work sites, limited access to essential workers when possible, and others.
- Post the new poster where it can be easily seen by all employees.
- Frequently check OSHA’s coronavirus website for updates.
10 Steps All Workplaces Can Take to Reduce Risk of Exposure to Coronavirus (English-language poster)
10 Steps All Workplaces Can Take to Reduce Risk of Exposure to Coronavirus (Spanish-language poster)
Who: All employers
When: Effective April 10, 2020
What: The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has published new, time-limited Enforcement Guidance for Recording Cases of Coronavirus Disease 2019 (COVID-19). The guidance clarifies when employers must report workplace cases of COVID-19, and how to document them. The intent is to have employers focus on implementing good workplace hygiene practices instead of, “…making difficult work-relatedness decisions in circumstances where there is community transmission.”
Employers of workers in certain industries (health care, emergency-response organizations, and correctional institutions) must continue to make work-relatedness determinations pursuant to 29 CFR § 1904. OSHA does not require other employers to make the determinations required by 29 CFR § 1904 except when there is objective evidence the case may be work-related, and the evidence was reasonably available to the employer. If your business is not covered by 29 CFR § 1904, most workplace cases of COVID-19 are not reportable.
The guidance provides these additional tips for reporting cases:
- The case must be confirmed, and it must be work-related as defined by 29 CFR § 1904.5.
- COVID-19 is a respiratory illness and should be coded as such on the OSHA Form 300.
- If an employee requests that his or her name not be entered on the log, the employer must comply.
- Follow the determination rules under 29 CFR § 1904 if yours is a covered business, or when the case meets the exceptions if yours is not a covered business.
- Direct questions to Elizabeth Grossman, Director of the Office of Statistical Analysis, at (202) 693-2225.
- Check OSHA’s website for updates.
Because of the high unemployment rate resulting from COVID-19, President Trump issued Proclamation Suspending Entry of Aliens Who Present a Risk to the U.S. Labor Market Following the Coronavirus Outbreak, to suspend foreign workers from entering the United States to work.
The Order affects the following visas for people who are outside of the U.S., don’t have a nonimmigrant visa, or don’t have an official travel document:
- H-1B visas for professional and technology workers
- H-4 visas used by spouses of H-1B holders
- H-2B visas for seasonal workers in landscaping and hospitality
- L-1 visas for executives and managers transferred within companies
- J-1 visas for interns, trainees or summer work-study programs
Visa holders already in the U.S. are exempt from the ban and may continue to apply for extensions or seek adjustments and changes. Health care workers fighting COVID-19 and food chain supply workers are exempt from the ban as well. The Proclamation takes effect on June 24, 2020, through December 31, 2020, with the possibility of extension.
Who: All employees and employers
When: Effective April 16, 2020
What: The Trump administration released Guidelines for Opening Up America Again, a phased approach based on the advice of public health experts. The plan applies to the federal government—the nation’s largest employer—but it also provides guidelines and “gating criteria” that state and local officials can follow as they make the decision to end stay-at-home orders and allow businesses to reopen.
In phase one, employers should encourage teleworking and have employees return to work in phases. Employers should have a policy of strict social distancing, limit nonessential travel, and follow current CDC guidelines on isolation after travel. Employers should also make accommodations for vulnerable employees when possible.
In phase two, schools, day care centers, and camps could reopen. Nonessential travel could resume. Employers should still allow employees to telework when possible and ask them to practice social distancing. People are to avoid public gatherings of 50 or more.
In phase three, employers can “resume unrestricted staffing.” Vulnerable people should still practice social distancing.
- Stay up to date on your state’s plan to reopen.
- Prepare a plan for employees returning to work, being mindful of the availability of school and daycare services for employees’ children.
- Allow employees to telework whenever possible.
Who: All employers and employees in the United States, especially those whose work relies on Medicare, Medicaid or SCHIP
When: March 13, 2020
Due to the widespread coronavirus, President Trump announced a National State of Emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. This will support states’ requests for federal financial aid related to the pandemic to cover up to 75% of the cost of medical supplies, vaccination, medical tests, and emergency workers.
The Declaration means COVID-19 is considered a “qualified disaster” under the Stafford Act and expands resources that businesses will be able to tap to assist employees who are impacted by the virus.
Employers will have access to additional assistance options to help their employees:
- Direct tax-free assistance: The financial assistance that employers give to workers will be tax-free and not treated as a salary or income. Employers can deduct the amount as a regular business expense. The amount of assistance should be reasonable and not a qualifying expense under the employer’s insurance.
- Employer-sponsored Emergency Funds that are classified as private foundations can be used as assistance in the same way that public charities can normally be used, without negative taxation. There are no requirements for any “pre-approval,” like a grant. If these expenses are properly documented, they would not be considered self-dealing and not taxable.
- Review your current business and employees’ needs and how your business can continue to support them. Work through different scenarios that may or may not require the use of the options the national state of emergency opens up.
- If your business has a private foundation, work with legal counsel to determine if those funds would be of additional help to employees in need of assistance. Prepare your business accordingly and communicate with impacted employees.
The U.S. Congress passed the Paycheck Protection Program Flexibility Act to amend the previous Paycheck Protection Program. The new changes increase the amount of time that employers have to spend loan funds to 24 weeks or to December 31, 2020.
Other changes include the rule regarding forgivable loan expenses that are spent on payroll. Under the changes, the ratio of payroll to non-payroll expenses changed to 60-40 (originally 75-25). Note: If businesses fail to spend 60% of the loan on payroll, they will still be eligible for some loan forgiveness, as long as 60% of the loan forgiveness amount is used for payroll.
Loan maturity was extended from 2 years to 5 years. Additionally, the deadline to restore full-time equivalent employees to levels from February 15, 2020 was extended from June 30, 2020 to December 31, 2020.
Additionally, the loan payment deferral period was changed to the date the lender receives forgiveness from the Small Business Administration or 10 months after the covered period’s final day if the recipient didn’t apply for forgiveness.
KPA, LLC and its partners/affiliates, collectively (KPA), has made reasonable efforts to ensure the accuracy of the subject matter presented. KPA makes no express or implied warranty with respect to the information presented and assumes no responsibility for errors or omission. This resource is designed to address compliance with federal laws; additional state laws and/or regulations may also apply. This resource should not be used as a substitute for professional or legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought.