Coronavirus – Page 5

June 9, 2020October 7, 2021

Paycheck Protection Program Flexibility Act brings loan forgiveness changes

COVID-19, coronavirus, public health crisis

On June 5, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act of 2020. The PPPFA — as its name suggests — offers greater flexibility for employers receiving loans under the CARES Act’s Paycheck Protection Program (PPP) by extending time frames, expanding exemptions and modifying other PPP terms affecting potential loan forgiveness and repayment.

Here are the key provisions of the PPPFA:

Extended “Covered Period” for Using Loan Proceeds

Under the PPP, borrowers needed to spend PPP loan proceeds on approved expenses within a period of eight weeks to potentially qualify for loan forgiveness. The PPPFA expands this period so that borrowers may now spend their PPP loan funds (a) over a period of 24 weeks from the origination of the loan, or (b) by December 31, 2020, whichever is earlier.

Also read: How to reduce compliance risk

Borrowers are, of course, still free to use the original eight-week covered loan period in the PPP or “alternative payroll covered period” provided in the U.S. Small Business Administration (SBA) loan forgiveness guidance. (A link to the earlier client alert discussing SBA loan forgiveness guidance appears here.)

Reduced Percentage of Loan to be Spent on Payroll for Forgiveness

The PPPFA states that 60 percent of PPP loan proceeds need to be spent on payroll costs in order for a borrower to obtain forgiveness, leaving 40 percent which can be spent on qualifying non-payroll expenses.

Also read: Employers grapple with laws about work schedules

This is a reduction from the 75 percent/25 percent split which had come from the SBA guidance and should give employers some welcome flexibility to spend a greater amount of loan proceeds on rent, mortgage payments and other qualifying non-payroll expenses.

Employers should note, though, that the language of the PPPFA indicates that if an employer does not spend 60 percent of loan proceeds on payroll costs, it will not be eligible for forgiveness of any portion of the loan. As there have been questions as to whether such a significant change from the PPP was intended, Morgan, Brown & Joy will continue to monitor future developments in this area.

Expanded Exemptions from Loan Forgiveness Requirements

The PPP provided that an employer who had experienced a reduction in either employee headcount or employee salaries between February 15, 2020 and April 26, 2020 (30 days after enactment of the CARES Act) could receive forgiveness if it eliminated any reduction in headcount and salary by June 30, 2020. The PPPFA extends this June 30 date to December 31, 2020.

Employers should not, however, be lulled into thinking that they can simply restore salary levels and headcount in a single stroke on December 31 and achieve full forgiveness. The requirement of spending 60 percent of loan proceeds on payroll will require forethought about restoration of staff levels and timing of payroll costs incurred and paid.

The PPPFA also expands exemptions from the reduction to loan forgiveness corresponding to a reduction in the number of full-time equivalent employees. An employer who has experienced a reduction in FTE employees after February 15 will not see a reduction in loan forgiveness based on FTE count if it can in good faith document:

That it has been unable to rehire individuals who were employed by the business on February 15, 2020 and also unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020; or
That it is unable to return to the same level of business activity at which it was operating before February 15, 2020 due to compliance with requirements or guidance from the U.S. Secretary of Health and Human Services, CDC or OSHA between March 1 and December 31 relating to standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.

Five-Year Repayment Period for New Loans

For PPP loans made on or after the effective date of the PPPFA (June 5), borrowers will have a period of at least five years to pay off the portion of any loan which is not forgiven. For loans made before the PPPFA effective date, lenders and borrowers may, but are not required to, mutually agree to modify the terms of an existing loan to include a minimum five-year period for repayment of any unforgiven amounts.

Extension of Loan Deferral Period

The PPPFA also expands the six-month loan deferral period created by the PPP. Repayment of a PPP loan (including principal, interest and fees) is now deferred until after the SBA has determined the borrower’s loan forgiveness amount and remitted that amount to the lender. For borrowers who do not apply for forgiveness within 10 months after the last day of the covered period, repayment of the loan begins at the expiration of that 10-month window.

Finally, in addition to the above, the PPPFA allows recipients of PPP loans to participate in the deferral of certain payroll taxes as provided by the CARES Act, which PPP borrowers had previously not been eligible to do.

The changing landscape of PPP guidance is only one of the many challenges employers face as businesses reopen and a greater number of employees return to work. Employers should consult their attorneys for assistance as legal concerns arise in workplaces in the COVD-19 era.

June 8, 2020

‘I was terminated for refusing to wear a Trump 2020 face mask.’

Ohio requires that all employees wear face masks or other face coverings as a condition to any business reopening that (subject to a few limited exceptions). The only rules are that the mask cover the employee’s nose, mouth, and chin. There are no other requirements about the nature of the mask or face covering, including its design or style.

One southern Ohio business, The Village Inn restaurant in Farmersville, is testing the mask-requirement waters by requiring its employees to wear “Trump 2020” masks.

Worse, it’s firing employee who refuse.

Or at least that’s what Kris Hauser, a former waitress of the restaurant, claimed happened to her in her viral Facebook post describing her termination.

The owner then approached me again and stated I needed to wear my Trump 2020 mask. I responded and told him I would wear it, but I would wear it inside out (which a majority of employees had been doing already for the days prior).

The owner, Scott, told me “No, you will wear it with Trump 2020 facing out for people to see.”

I told him I would not do this and he said that I needed to leave.

Your first inclination might be to say, “Jon, Ohio, like every other state besides Montana, is an at-will state, meaning that an employer can fire any employee for any reason, good or bad. And just last Thursday you told us that there are only a few states that ban political opinion discrimination, and Ohio isn’t one of them. So while many will feel that Kris Hauser’s termination is morally and ethically reprehensible, I don’t see anything unlawful about it.”

While Ohio is an at-will state, it recognizes several key exceptions to employment-at-will, including a tort claim for wrongful discharge in violation of public policy. What does this mean? I’ll let the Ohio Supreme Court explain:

In order for a plaintiff to succeed on a wrongful-termination-in-violation-of-public-policy claim, a plaintiff must establish four elements: (1) that a clear public policy existed and was manifested either in a state or federal constitution, statute or administrative regulation or in the common law (“the clarity element”), (2) that dismissing employees under circumstances like those involved in the plaintiff’s dismissal would jeopardize the public policy (“the jeopardy element”), (3) the plaintiff’s dismissal was motivated by conduct related to the public policy (“the causation element”), and (4) the employer lacked an overriding legitimate business justification for the dismissal (“the overriding-justification element”).

In other words, if a termination offends a clear public policy of the state, and the employee does not have any other remedy to redress the termination, the employee can sue in tort for the wrongful discharge.

In this case, Ohio has a clear public policy against employers influencing employees’ political opinions—Ohio Revised Code section 3599.05, which criminalizes employers that make expressed or implied threats “intended to influence the political opinions or votes of his or its employees.”

That’s exactly what The Village Inn did in imposing its “Trump 2020” mask requirement under threat of termination. And it’s not too far off the mark from Kunkle v. Q-Mark, Inc. (S.D. Ohio 6/28/13), which refused to dismiss a public policy claim based on section 3599.05, after the employer allegedly threatened employees with termination if President Obama won re-election, and allegedly fired the plaintiff after she stated she voted a “straight Democratic ticket.”

I’ve never been shy about calling out an employer that has wronged an employee. The Village Inn has wronged Kris Hauser. The internet has already spoken. I hope Ms. Hauser finds a lawyer to take her case and the courts have their say as well.

June 3, 2020June 29, 2023

Do Lake of the Ozarks employees sent home from work qualify for paid sick leave under FFCRA?

Last week I discussed how to handle employees who are not social distancing outside of work.

My thoughts were spurred by videos of employees partying over the Memorial Day weekend at Lake of the Ozarks and elsewhere around the country.

I said the following:

I would also place any employee who violated social distancing rules outside of work (whether the information is volunteered on a self-assessment or discovered through a viral video) on a mandatory two-week unpaid leave of absence and require a quarantine as a condition of continued employment.

It looks like I might have a reader in Lincoln County, Missouri.

According to KSDK, employers are mandating unpaid leaves of absence and quarantines for employees who spent their holiday weekend amid the throngs at Lake of the Ozarks, The story also quotes an attorney who says that placing an employee on an unpaid leave of absence, under those circumstances, might violate the FFCRA’s requirements for paid sick leave for an employee “advised by a health care provider to self-quarantine due to concerns related to COVID-19.”

I completely disagree, and the Department of Labor has my back.

Take a look at Question 77 to the DOL’s FFCRA Questions and Answers:

May I take paid sick leave or expanded family and medical leave under the FFCRA if I am on an employer-approved leave of absence?

It depends on whether your leave of absence is voluntary or mandatory. If your leave of absence is voluntary, you may end your leave of absence and begin taking paid sick leave or expanded family and medical leave under the FFCRA if a qualifying reason prevents you from being able to work (or telework). However, you may not take paid sick leave or expanded family and medical leave under the FFCRA if your leave of absence is mandatory. This is because it is the mandatory leave of absence—and not a qualifying reason for leave—that prevents you from being able to work (or telework).

In other words, if an employee’s leave of absence is the employer’s choice, as is the case in the Lake of Ozarks example, then the employee does not qualify for FFCRA paid sick leave, because it’s not a COVID-19 medical recommendation or quarantine that’s preventing the employee from working but the leave of absence.

It’s no different from a furlough, for which employees also do not qualify for FFCRA paid leave. As long as you place an employee on leave before they tell you they’ve been advised by a health care provider to self-quarantine because of COVID-19 concerns, you shouldn’t have to worry about paying the employee for that leave under the FFCRA.

May 26, 2020June 29, 2023

When an employee isn’t social distancing outside of work

How did you spend your Memorial Day weekend? Mine was way more mundane than years past.

I watched my nephew receive his high school diploma and pre-record his valedictory address in an individual, family-only ceremony. We walked the dogs a bunch. We went to Lowe’s, masks on faces (the first store in which I’ve been inside other than a grocery store in over two months). I barbecued for my wife and kids.

Other people chose less COVID-appropriate holiday weekend activities.

Scenes like this one were repeated all over the country. Will you be surprised when COVID-19 cells spring up in two weeks linked to these mass gatherings? Because they will.

Here’s my question. What do you do if you see one of your employees in one of these social-gathering viral videos? Do you welcome him or her back into the workplace today with open arms?

I would not. I’d screen employees for risky behaviors during the holiday weekend or otherwise. Ohio already requires all businesses, as a condition to reopening, to “conduct daily health assessments by employers and employees (self-evaluation) to determine if ‘fit for duty.’” With the country reopen and summer upon us, I’d recommend adding two questions to this self-assessment

Did you take part in a social gathering in which you were within 6 feet of others? Being within 6 feet of others who do increases your chances of getting infected and infecting others.
If you attended a social gathering, was everyone around you wearing a mask or facial covering? Others within six feet of you not wearing masks increases your chances of becoming infected.

I would also place any employee who violated social distancing rules outside of work on a mandatory two-week unpaid leave of absence and require a quarantine as a condition of continued employment. (According to NBC News, the Kansas City health director has called for self-quarantine of all Lake of the Ozarks partiers.)

If an employee returns after being at one of these weekend parties and then tests positive, there is a really good chance that you will have to shut down your entire business (or at least a sizable part of it). Is this a risk you want to take? I wouldn’t, which is why I’d ask the questions and place anyone on an unpaid quarantine leave who answers “yes” or who I otherwise discover violated social distancing rules (such as if I see them on a viral video or photo.

We all have a social responsibility to help stop the spread of coronavirus. If an employee fails to play his or her part and chooses to act irresponsibly, I am not going to lose any sleep by sending them home for two weeks to protect the rest of my employees and their families, and my business and its continuing operations.

May 18, 2020June 29, 2023

House proposes significant expansions to paid leave under Families First Coronavirus Response Act

The House of Representatives on May 15 passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, H.R.6800. Among other things, it proposes significant clarifications and expansions to the Emergency Family And Medical Leave and Emergency Paid Sick Leave provisions of the Families First Coronavirus Response Act.

What are these proposed changes?

Emergency Family And Medical Leave

Expands emergency FMLA coverage to all employers, not just those with less than 500 employees.
Expands the definition of “parent” to include foster parents, adoptive parents, stepparents, parents-in-law, a parent of a domestic partner, and someone who stood in loco parentis to an employee when the employee was a child.
Provides emergency FMLA to an employee who is —
- self-isolating because of the employee’s own COVID-19 diagnosis;
- obtaining a medical diagnosis or care if the employee is experiencing the symptoms of COVID–19;
- complying with a recommendation or order by a public official with jurisdiction or a health care provider to self-isolate on the basis that the physical presence of the employee on the job would jeopardize the employee’s health, the health of other employees, or the health of an individual in the household of the employee because of the possible exposure of the employee to COVID–19 or because of the exhibiting of symptoms of COVID–19 by the employee;
- caring for or assisting a family member (also defined in the amendments) because the family member is self-isolating because of a COVID–19 diagnosis, because the family member is experiencing symptoms of COVID–19 and needs to obtain medical diagnosis or care, or because a public official or health care provider makes a recommendation or order that the presence of the family member in the community would jeopardize the health of other individuals in the community because of the possible exposure of such family member to COVID–19 or exhibiting of symptoms of COVID–19; and
- caring for a family member who is incapable of self-care because of a mental or physical disability or is a senior citizen, if the place of care for such family member is closed or the direct care provider is unavailable due to COVID–19.
Permits an employee to elect, but an employer cannot require, the substitution of paid time off for emergency FMLA.
Allows employees to take paid sick leave intermittently or on a reduced work schedule without regard to whether the employee and the employer have an agreement with respect to whether such leave may be taken intermittently or on a reduced work schedule.
Prohibits an employer from requiring certification by an employee in support of an emergency FMLA leave to not earlier than five weeks after the date on which the employee takes such leave
Extends the sunset date of emergency FMLA from 12/31/2020 until 12/31/2021.

Emergency Paid Sick Leave

Clarifies that paid sick leave under the FFCRA must be offered in addition to any paid leave offered by an employer, and prohibits an employer from changing its policies to avoid providing any additional paid leave.
Allows employees to take paid sick leave intermittently or on a reduced work schedule without regard to whether the employee and the employer have an agreement with respect to whether such leave may be taken intermittently or on a reduced work schedule.
Prohibits an employer from requiring certification by an employee for the need for paid sick leave for leaves less than three consecutive days of paid sick time, and further prohibits an employer from requiring such certification earlier than seven workdays after an employee returns to work.
Provides for a new allotment of 80 hours of paid sick leave if an employee changes employers.
Requires restoration of an employee to the same or equivalent position at the end of a period of paid sick leave.
Extends the sunset date of paid sick leave from 12/31/2020 until 12/31/2021.

Sen. Mitch McConnell has already said that this bill is DOA in the Senate in its current form but it’s unclear if this statement specifically referenced the FFCRA amendments. Stay tuned to see if any of these proposed amendments gain any traction in the Senate. I’ll keep everyone updated as this bill progresses.

May 12, 2020June 29, 2023

You have every right to be a 𝘤𝘰𝘷𝘪𝘥𝘪𝘰𝘵, and we have every right to fire you for it

termination, covidiot, workplace violence, gun, weapon

“Covidiot: A person who acts like an irresponsible idiot during the COVID-19 pandemic, ignoring common sense, decency, science, and professional advice leading to the further spread of the virus and needless deaths of thousands.”

A Dallas law firm has terminated the employment of a document services manager after it discovered his threatening, offensive, racist and very public Facebook post taking issue with mandatory face masks.

“No more masks. Any business that tells me to put on a mask (Whole Foods on Lomo Alto) in Dallas will get told to kiss my Corona ass and will lose my business forever. It’s time to stop this BULLSHIT. Do I have to show the lame security guard outside of a ghetto store my CV19 test results? I will show him my Glock 21 shooting range results. With Hornady hollow points. Pricey ammo, but worth it in this situation. They have reached the limit. I have more power than they do…..they just don’t know it yet.”

Bain’s post, which any reasonable person would interpret as just plain wrong, resulted in his termination. As my friend Eric Meyer pointed out yesterday (borrowing from a comment on the Facebook page of Bain’s former employer): “Freedom of speech doesn’t mean freedom from consequences for that speech.”

In other words, you have the right to your opinion, no matter how offensive. But once you share that opinion publicly, we have the right to fire you for it … coronavirus or no coronavirus.

COVID-19 might have temporarily upended our world, but just cause for termination is still just cause for termination. So please don’t be a covidiot. Employers don’t like firing people under the best of circumstances. We especially don’t like doing so now. But we will if we have to.

May 6, 2020June 29, 2023

How do parents return to work without available child care?

Child care is the issue that has gotten the least attention in discussions about employees returning to work.

As states begin to slowly reopen and return employees to work, working parents are left wondering who will care for their children if schools, day cares and camps are closed.

The Families First Coronavirus Response Act provides working parents with some relief with its 12 weeks of paid child care-related leave. But that law has limits.

It does not apply to businesses with 500 or more employees, and businesses with less than 50 employees can exempt themselves from the childcare-related leave provisions.
It limits an employee’s leave allotment to 12 weeks, meaning that if an employee started taking childcare-related paid leave when the FFCRA took effect on April 1, he or she will exhaust their paid leave on June 24.
It does not apply if there is anyone else available to care for an employee’s child(ren) during the employee’s working time.

And the FFCRA does not account for parents who are stretched the point of exhaustion, working their full workdays remotely, and then working another full workday managing child care-related responsibilities. Consider the following hypothetical from the New York Law Journal.

Maya is an investment banker in New York City and typically works a 10-hour day. Maya has a nanny care for her infant daughter while she is at the office. During this pandemic, Maya is forced to work at home and her nanny is unable to help. Maya now has to handle a 10-hour/day job using less-than-ideal remote access technology—her remote desktop does not operate as smoothly as her office computer; she has one screen on her home computer as opposed to three in her office; she does not have direct access to her assistant or her other staff; she does not have the full panoply of office supplies and other corporate-level printing and copying, etc. With all these hindrances, Maya must work 12 hours to accomplish the same work she previously did in 10. On top of that, she must care for her infant daughter all day, which conservatively involves approximately eight hours of direct, hands-on attention. For Maya to cover her responsibilities (minus any time for even a short break), she must work a 20-hour day. And, she must do this every day, indefinitely, until the circumstances of this pandemic change.

Or consider, for example, Ohio Gov. Mike DeWine, who on May 5 said that some K-12 schools are considering starting the 2020–21 school year on a split schedule. Half of a school’s students would attend in-person classes on Mondays and Tuesday, and the other half of Thursdays and Fridays. Students would distance learn on the days they aren’t in school in person.

This plan is great for helping schools manage social distance, but it’s terrible for working parents who are left scratching their heads figuring out who will help manage distance learning and otherwise watch their children on the days they aren’t in school, and who will provide child care after school.

What’s an employer to do?

1. Don’t discriminate. Family responsibility discrimination remains unlawful under Title VII. While federal law does not expressly include “family responsibility” as a protected class, the EEOC has long held that Title VII’s prohibits discrimination against parents as parents if you are treating some more favorably than others (e.g., dads better than moms, or men better than moms). There are also, a few states that expressly prohibit parental discrimination. If, for example, you have to make decisions about layoffs, you should be considering whether working parents are disproportionately included.

2. Consider accommodations to aid working parents. Work from home is already an accommodation, but there are others that could help here. Modified work schedules (which the Department of Labor favors in its FFCRA guidance), designated breaks, and the provision of additional work supplies such as laptops and printers could all ease the burden on parents working from home. Our goal here should be helping employees figure out solutions to get their job done, not harming employees (and the business) by erecting barriers that prevent it.

3. Finally, and most importantly, flexibility is key. Ohio’s Stay Safe Order mandates that manufacturers, distributors, construction companies, and offices allow employees to “work from home whenever possible.” If employees can work remotely, let them work remotely. Flexibility, understanding, and compassion is the best answer I can offer for the foreseeable future.

May 5, 2020June 29, 2023

The new normal: Navigating workforce challenges during and after the pandemic

The COVID-19 pandemic has catapulted workforces around the world into remote work or a different environment than what employees are used to.

Businesses are making adjustments to their operations in adherence to social distancing and in joining the fight to curb the pandemic.

As the search for a vaccine continues, it seems like flexible work will be here to stay. But what does that mean to the workforce? And what must managers do to help navigate the new normal involving remote work?

Same principles, different times

Jacob Morgan, an author, speaker and authority on leadership, employee engagement and the future of work, said in a recent blog post that more companies will embrace flexible working arrangements.

“With the current pandemic, millions of people around the world are working from home,” he said. “This will likely continue over the coming months but even after the pandemic is over, I expect we will see a dramatic rise in flexible work arrangements. However, in order for these efforts to be successful organizations need to use a new set of digital technologies and embrace a new way of working.”

Morgan also wrote about the things top companies do to succeed at implementing flexible arrangements during COVID-19 and even after the pandemic. He mentioned implementing the right kind of technology according to an organization’s unique objectives.

“Before rushing to pick that shiny new collaboration and communication platform, focus on developing a strategy which will help you understand the ‘why’ before the ‘how.’ This is crucial for the success of any collaboration initiative,” he wrote. “You don’t want to be in a position where you have deployed a technology without understanding why. Especially during this pandemic, make it clear what the desired goals are so everyone is on board.”

Aside from implementing suitable solutions, Morgan also highlighted the importance of collaboration, measuring the right metrics, leading by example and listening to the voice of the organization, among others. Morgan explained the challenges in applying them and practical ways to overcome them.

“Collaboration should never be seen as an additional task or requirement for employees,” Morgan wrote. “Instead collaboration should fit naturally into their flow of work. For example, with my virtual team of ten employees turning on Skype every morning and looking at what’s going in Asana is how we all start our day, it’s not an afterthought or something additional we do … it’s how we get things done.”

He reiterated that collaboration is an ongoing initiative and goes beyond simply rolling out initial guidelines, thinking that it will stand the test of time. It’s all about adjusting and being agile to changes.

“It’s important to remember that collaboration is perpetual,” Morgan wrote. “It’s a never ending evolution as new tools and strategies for the workplace continue to emerge. This means that it’s important for your organization to be able to adapt and evolve as things change. Keep a pulse on what’s going on in the industry and inside of your organization. This will allow you to innovate and anticipate. So many organizations were caught off guard by this pandemic because they had neither the tools, the training, the leadership, or the guidelines to help make flexible work successful.”

Clear course of action is vital

The pandemic has disrupted global workforces. Management consultancy Gallup has seen massive changes in different aspects of work and employee life, and they are seeing record levels of stress and worry among the U.S. workforce. So how are employers faring in terms of their response?

Leaders need to have a clear course of action and communicate it clearly to their employees. A survey from Gallup shows that 52 percent of employees strongly agree that their employer fared well in terms of sharing information to them about the next steps.

Technology is key to implementing action plans

Having a strategy is just half of the battle. The other half is implementing it. Technology plays a crucial role in that.

A workforce management platform is helpful in this regard as it can help you operate efficiently beyond borders, staying on top of your operations, and improving overall communication with staff. It can help you automate and customize certain processes and adjust quickly to market changes.

There’s a lot of factors at play when managing a workforce, especially so at a time like this. It’s vital to have the right solutions in place that will help you focus on enriching your people and equipping them to do their best even in this era of remote work and beyond.

May 5, 2020June 29, 2023

One state is encouraging employers to report AWOL employees to unemployment agency

technology; workplace communications; internal communications

Last week I asked how employers could encourage employees to return to work when unemployment benefits pay them more than their jobs.

One suggestion I offered was to hit employees with the stick of unemployment-benefit termination.

Employees who refuse return-to-work offers might be disqualified from collecting further unemployment benefits (unless their refusal is because of coronavirus), and you can advise employees that refuse a recall that you will be asking the state to terminate their benefits.

Late last week, the state of Ohio provided a clear reminder to employers of the validity of this threat.

According to cleveland.com, “The Ohio Department of Job and Family Services has set up a webpage – and sent emails to employers Friday night – telling them to report workers who don’t return so they can get reevaluated and potentially lose unemployment benefits.” That email says in part:

Ohio law prohibits individuals from receiving unemployment benefits if they refuse to accept offers of suitable work, or quit work, without good cause. …

If you have employees who refuse to return to work or quit work, it’s important that you let the Ohio Department of Job and Family Services (ODJFS) know so we can make accurate eligibility determinations.

Employers are then encouraged to visit https://secure.jfs.ohio.gov/covid-19-fraud/ to report their AWOL employees.

As for employees who refuse to return to work over safety concerns? ODJFS says that if a reasonable person would not feel safe returning to work to that employer, an AWOL employee still might qualify for benefits.

Non-essential businesses have begun to reopen in Ohio. Employers, you need to be 100 percent transparent about the steps you are taking and measures you are implementing to help keep your employees as safe as possible from contracting COVID-19 at work. Otherwise, you risk a mass exodus, and employees might opt for unemployment over the jobs you offer them.

May 4, 2020June 29, 2023

Labor compliance software sorts through complex legal issues

Labor compliance software is an innovative way to manage the overwhelming alphabet soup of laws, regulations and agencies that govern the workplace.

HR practitioners must recognize the regulatory distinctions of the FMLA and FLSA and navigate the nuances between the ADA and ADAAA. What are the latest regulations surrounding the ACA? Can a misstep with COBRA come back to bite them? And SOX … is that a professional baseball team or a law protecting corporate whistleblowers?

If assessing guidance from agencies including OSHA, DOL and EEOC wasn’t enough to cope with, labor compliance software is a must-have now as the coronavirus invades organizational policies. HR leaders and corporate counsel must quickly familiarize themselves and understand the implications of implementing workplace laws surrounding a new bowl of alphabet soup — PPP, FFCRA and the CARES Act.

The value of labor compliance software

Maintaining corporate compliance with government regulations isn’t easy. Besides knowing what agencies actually do and how regulations affect employers, labor laws are dense, complex and confusing. A single unintentional compliance misstep by an organization can lead to a costly and time-consuming lawsuit with the potential to disrupt or even bankrupt a small, growing organization.

Compliance solutions allow organizations to avoid a trip to court and more easily comprehend constantly changing federal, state and local legislation. Employers can disseminate policies to employees, provide guidelines for regulatory enforcement and manage confidential documents all while saving money by easing time-consuming, onerous reporting rules.

Workforce management systems typically assist with traditional compliance issues while a specialized compliance solution takes employers beyond the basics and provides expert guidance on critical regulations. It can be like having a team of legal experts at your fingertips with minimal expense.

Labor compliance software also allows businesses to communicate company and legislative policies to their employees.

Key areas for compliance software

Regulatory software helps an HR department remain in compliance across all organizational departments. According to peer-to-peer software review site G2, there are business functions and the germane laws that can be undertaken by labor compliance software:

Benefits — Affordable Care Act (ACA); Consolidated Omnibus Budget Reconciliation Act (COBRA); Health Insurance Portability and Accountability Act (HIPAA); Genetic Information Nondiscrimination Act (GINA); Fair Labor Standards Act (FLSA); Family and Medical Leave Act (FMLA).

COVID-19-related policies — Coronavirus Aid, Relief, and Economic Security Act (CARES Act); Families First Coronavirus Response Act (FFCRA) and Payment Protection Program (PPP).

Labor and employment relations — Labor union updates (AFL-CIO, AFGE, SEIU, etc.); Department of Labor (DOL); Equal Employment Opportunity Commission (EEOC); National Labor Relations Board (NLRB); Office of Federal Contract Compliance Programs (OFCCP).

Payroll — Fair Labor Standards Act (FLSA); Federal Insurance Contributions Act (FICA); Federal Unemployment Tax Act (FUTA); Sarbanes-Oxley Act (SOX).

Risk — Employee safety is a top priority for all organizations. Compliance software can manage and track guidance and enforcement by the Occupational Safety and Health Administration (OSHA).

Companies needing compliance software

No organization is immune from U.S., state and local labor laws. True, regulations often vary depending on factors including employee count. A four-person mom-and-pop shop does not face the same labor compliance regulations as a multinational company.

Yet it is crucial that company policies remain up to date and comply with changes in legislation. Despite the expense a lawsuit can present, many smaller organizations are hesitant to call on legal resources simply based on costs. Those concerns can be streamlined by compliance software.

Small companies have difficulty keeping up with changes in compliance because they lack the manpower, and HR departments are already stretched thin or responsibilities are divided among employees as collateral duty. There is no point person to track and update compliance regulations.

Compliance is particularly crucial to navigating the maze of workplace issues. Municipalities and some states have instituted fair workweek policies in the past two years with more on the horizon.

In the wake of the #MeToo movement, mandatory sexual harassment prevention training is compulsory in six states. Compliance training, employee handbooks and more can be structured and simplified with a compliance solution.

Small and midsize organizations in particular have difficulty keeping up with HR compliance regulations as new legislation is continually introduced. When the HR team is small (or even just one person), their bandwidth quickly becomes strained.

Sorting through the alphabet soup of labor regulations can be an eye-glazing exercise for employers. Labor compliance software helps them to spell out attractive cost-savings, easy-to-use solutions and avoid unintentional noncompliance.