Families First Coronavirus Response Act
As noted in our March 19, 2020 Client Alert, the U.S. Department of Labor was required to provide a Model Notice of Employee Rights under the Families First Coronavirus Response Act. The DOL has now posted the Model Notice here. Private sector employers with less than 500 employees must post the notice in a conspicuous place. If you have employees working remotely, you may satisfy the posting requirement as to those employees by emailing a copy of the poster to them. The DOL also posted a Q&A about the poster, here.
Significantly, the DOL announced that the Families First Act will become effective on April 1, 2020. Prior to that announcement, employers had assumed the Act would be effective April 2, 2020, based on the 15-days-from-signing language contained therein. However, it appears the DOL has other plans, and we recommend implementing the provisions of the Act, including the paid sick leave and emergency FMLA leave, on April 1. If the employer can demonstrate that it made reasonable, good faith efforts to comply with the Act, no penalties will be imposed for violations occurring until April 17, 2020 (a so-called “non-enforcement period”). The Department will “fully enforce” the provisions of the Act beginning April 18.
Note that there is a typo on the Model Notice, which hopefully the DOL will correct. When addressing the additional 10 weeks of leave provided to care for a child, the dollar amounts stated should be $200/day and $10,000 (not $12,000 as stated in the notice) total.
The DOL has also provided a general Q&A about the Families First Act, which you may find helpful.
Alabama Unemployment Compensation
The Alabama Department of Labor has changed eligibility requirements for employees unemployed as a result of the pandemic. Individuals may now file unemployment claims if they are quarantined by a medical professional or governmental agency; laid off or sent home without pay for an extended period due to COVID-19 concerns; diagnosed with COVID-19; or caring for an immediate family member diagnosed with COVID-19. Employees with significantly reduced hours as a result of COVID-19 may also be eligible for unemployment benefits. Unlike normal unemployment compensation claims, employees who file under the COVID-19 provisions will not be required to search for work during their period of unemployment, and the one-week waiting period for benefits will be waived.
The ADOL is also offering employers an incentive to assist their employees with COVID-19-related unemployment claims. For “partial claims,” that is, claims where the employee has been laid off for a short time but is expected to return to work with the same employer, employers’ experience ratings will not be charged if they follow certain procedures. First, employers can electronically file partial claims on behalf of their employees, after obtaining the employee’s permission to do so, and indicating the claim is COVID-19-related. Alternatively, employers can waive their right to respond to the Request for Separation Information (the form sent to the employer after an employee files a claim for unemployment benefits) and verify that the separation reason is COVID-19-related, and the employer will not be charged. For additional information about COVID-19 unemployment claims generally, click here. For additional information about employer requirements to avoid charges for COVID-19 unemployment claims, click here.
The Alabama Department of Labor changed the eligibility requirements for benefits. It did not change the length of the benefit period or the maximum weekly amount of the benefit. The CARES Act, which has passed the Senate and is expected to pass the House tomorrow, contains provisions expanding the time and dollar amounts applicable to periods of unemployment arising from COVID-19.
NOTE: During this unusual period in our country’s history, there are daily, sometimes hourly, developments on new employer requirements under federal and state law. Please contact your HKH attorney for the latest guidance.
We understand these are stressful times for you, your company, and your employees. We are here to help you work through any issues that may arise or questions you may have.