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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Eleventh Amendment Prevents Suit Against Indiana For FLSA
The Seventh Circuit Court of Appeals recently held in Nunez v. Indiana Department of Child Services that Indiana may not be sued for alleged violations of the Fair Labor Standards Act (“FLSA”). Two employees of Indiana Department of Child Services (the “Department”) sued the Department for violation of FLSA alleging that the employees had not been paid for overtime they were required to work. The trial court dismissed the lawsuit, holding that Indiana was immune from suit pursuant to the Eleventh Amendment (which provides “The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State”). In short, the Eleventh Amendment prevents private suits against states in federal court. The United States Supreme Court held in 1999 that the FLSA did not abrogate immunity, but that states could consent to suits for violation of the FLSA. Alden v. Maine, 527 U.S. 706 (1999). A waiver of immunity can occur in any of 3 circumstances: When a plaintiff seeks prospective equitable relief against a state official, when Congress abrogates immunity through legislative enactment (which did not occur with FLSA per Alden), or when a state waives immunity and consents to suit. The plaintiffs claimed that Indiana had waived immunity and consented to suit. First they claimed a waiver within the Indiana Code which contains a statute of limitations for contract claims against the state. However, the Seventh…
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Indiana Political Subdivisions Must Adopt New Policies by July 1, 2016
Beginning July 1, 2016, Indiana Code § 5-11-1-27 (HEA 1264-2015) imposes a number of new requirements on all political subdivisions in Indiana that will significantly change the manner in which these entities operate. It is critical that each unit of local government takes action prior to July 1, 2016 to ensure that it will remain in compliance and receive budget approval from the Indiana Department of Local Government Finance (DLGF) later this year. Specifically, the new law requires, among other items, the following: (1) The legislative body of a political subdivision must develop and adopt a “system of internal controls” and ensure appropriate training of all personnel concerning the internal control system. (2) The fiscal officer of a political subdivision must certify annually that required and procedures are in place and that all personnel with access to funds have received training on the procedures. (3) The state board of accounts (SBOA) must issue a comment in its examination report if internal controls and procedures are not adopted or personnel have not received training. (4) The governing board of the entity must self-report uncorrected violations to the DLGF. (5) The DLGF may not approve the political subdivision’s budget or supplemental appropriations if the political subdivision has failed to adopt internal controls and procedures or train personnel. (6) Additional reporting and follow up requirements are required upon the discovery of the misappropriation of political subdivision funds. While the new law makes other changes to the operations of local units of government, the above will have the most immediate…
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