Blog, Employment Law, Government Practice, News
Families First Coronavirus Response Act’s Impact on Municipalities and Government Entities
INTRODUCTION On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (the “Families First Act” or “Act”) which takes effect on April 1, 2020. The Families First Act includes two significant provisions mandating most employers to make sick leave and expanded family leave payments available to employees impacted by the coronavirus disease 2019 (“COVID-19”). Those provisions are the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act (the “EFMLEA). The Families First Act is applicable to private sector employers with less than 500 employees[1] and all local government employers[2] with one or more employee. As such, all governmental entities such as townships, counties, municipalities, school districts, fire districts and other political subdivisions are subject to the mandates under the Families First Act. The Act provides refundable payroll tax credits to private employers to ease the burden associated with these paid leave requirements. Unfortunately, these tax credits cannot be claimed by any entity, agency or instrumentality of State or local government. This memorandum briefly summarizes the impact the Families First Act will have on our governmental clients throughout the state. OVERVIEW The Emergency Paid Sick Leave Act applies to all employee leaves taken from April 1, 2020 through December 31, 2020. All governmental employers with one or more employee are required to provide two weeks (up to 80 hours) of paid sick leave for employees meeting the COVID-19 related criteria described below. Employees unable to work due to a bona fide need to care for an individual…
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Blog, Business, Government Practice, News
COVID-19: News to stay informed from Indiana Courts
Government and Business organizations have been acting fast and furious in response to COVID-19. This running blog entry identifies operational changes and helpful links. We will update this blog as more changes are made: Indiana’s Shelter in Place Order. Governor Holcomb has issued a shelter in place order that expires at 11:59 p.m. on Monday, April 6. The order applies to all businesses expect essential businesses and services. Essential businesses include but are not limited to grocery stores, pharmacies, gas stations, police stations, fire stations, hospitals, doctor’s offices, health care facilities, garbage pickup, public transit, and public service hotlines. A full list of essential businesses can be found at Essential Businesses The Executive Order can be found at Stay-at-Home Order and a FAQ sheet can be found at FAQ Sheet Employer Paid Sick Leave Act and Emergency FMLA Please see our blog post here Updated Information from the IndyBar can be found here The Indianapolis Chamber of Commerce has established a Rapid Response Hub for small businesses. The Chamber’s Hub can be found here Federal Courts Located in Indiana Northern District of Indiana The Northern District of Indiana has issued two orders, both linked below. A summary of the changes follows: March 17, 2020 Order March 23, 2020 Order All jury trials scheduled up through May 1, 2020 are continued and will be rescheduled Civil proceedings will be converted to telephonic or videoconference proceedings Criminal cases: Plea and sentencing hearings scheduled up through May 1, 2020 are continued and will be reschedule. Initial appearances, arraignments, and…
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Blog, Business, Employment Law, Government Practice
CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT (“CARES ACT”)
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). This historic economic recovery package, commonly referred to as “Phrase Three,” is intended to provide relief to the American economy in response to the coronavirus disease 2019 (“COVID-19”). The CARES Act contains numerous significant provisions impacting individual Americans and businesses of all sizes. ALL BUSINESSES Employee Retention Credit The CARES Act creates a tax credit equal to 50% of the qualified wages paid to employers during the COVID-19 outbreak. Eligible employers are those whose: (1) operations are fully or partially suspended because of a governmental COVID-19 order; and (2) gross receipts declined by more than 50% compared to the same quarter in the previous year. For employers with more than 100 full-time employees, qualified wages are those paid to employees when they are not providing services because of COVID-19. For employers with less than 100 full-time employees, qualified wages are those paid to employees whether the employer is still in operation or ordered to shut-down because of COVID-19. The credit is for the first $10,000 of compensation for each employee, including health benefits. Other Key Provisions The CARES Act permits employers and self-employed individuals to defer payment of the 6.2% social security tax on employee wages. The deferred payments must be paid over the following two years. The CARES Act also permits employers to provide a tax-free student loan repayment benefit to employees. Employers can contribute up to $5,250 annually towards employees’ student loans, and that amount…
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Blog, Business, Employment Law, News
NEW COVID-19 Employer Pay/Leave Regulations
Update April 1, 2020: At the time of our initial post, the federal government had not defined health care providers or emergency responders. In a new FAQ sheet, the Department of Labor has defined both classifications: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions FAQ 56: Who is a “health care provider” who may be excluded by their employer from paid sick leave and/or expanded family and medical leave? For the purposes of employees who may be exempted from paid sick leave or expanded family and medical leave by their employer under the FFCRA, a health care provider is anyone employed at any doctor’s office, hospital, health care center, clinic, post-secondary educational institution offering health care instruction, medical school, local health department or agency, nursing facility, retirement facility, nursing home, home health care provider, any facility that performs laboratory or medical testing, pharmacy, or any similar institution, employer, or entity. This includes any permanent or temporary institution, facility, location, or site where medical services are provided that are similar to such institutions. This definition includes any individual employed by an entity that contracts with any of the above institutions, employers, or entities institutions to provide services or to maintain the operation of the facility. This also includes anyone employed by any entity that provides medical services, produces medical products, or is otherwise involved in the making of COVID-19 related medical equipment, tests, drugs, vaccines, diagnostic vehicles, or treatments. This also includes any individual that the highest official of a state or territory, including the District of Columbia, determines is a health care provider necessary…
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