employees Archives - Lake Effect HR

employees

Coaching Employees Through Interpersonal Differences

Since the pandemic, many employers have experienced a rise in the number of interpersonal disputes among employees. These conflicts may reflect long-standing friction that went dormant during COVID, employees out-of-practice at making small talk by the proverbial water cooler, or employees no longer willing to tolerate an aggravating co-worker or demanding boss. Lake Effect has helped many organizations address these employee relations issues quickly and effectively using the Everything DiSC® methodology.

Everything DiSC is a versatile tool that can be used in employee and executive coaching sessions, mediation, and group training to break down friction among coworkers, strengthen teams, and professionally develop individuals. The personalized Everything DiSC Workplace Profile® that each employee receives provides a great starting point to coach employees through challenging situations, transitions, and pivots. Even in the face of conflict and stress, employees who know their own DiSC style and those of their co-workers can modify their behavior and approach to communicate more effectively and productively with others. Very quickly, the DiSC framework helps your employees improve teamwork, communication, and productivity by developing a common communication language in the workplace.

In the post-COVID world, employees are returning to the workplace with new expectations and aspirations. By providing them with Everything DiSC assessment and training, you are providing them with the resources to improve their workplace interactions and overall experience. You also demonstrate your commitment to their future and professional development. Contact your partners at Lake Effect to help you maximize your workplace potential.

Lake Effect can assist with all of your employee relations issues and answer your questions about federal and state employment laws and HR best practices. We continue to monitor important legal and HR developments that affect employers. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Human Resources - 03/28/2023

Employers Face New Challenges Under Colorado’s Revised Non-Compete Law

Effective August 10, 2022, employers who aim to protect business interests by requiring employees in Colorado to sign non-compete and customer non-solicit agreements will face new challenges under amendments to Colorado's restrictive covenant law. Key provisions include the following:

Post-employment non-compete agreements, including customer non-solicitation agreements, are presumed void unless all of the following are established:
- For a non-compete agreement, the employee is “highly compensated” at the time of signing and termination, with annual earnings at or above the Colorado Department of Labor and Employment’s highly compensated worker threshold (currently $101,250 per year, to be increased each year);
- For a customer non-solicit agreement, the employee earns at least 60% of the highly compensated worker threshold (currently $60,750 per year, to increase each year);
- The agreement is for the purpose of protecting trade secrets; and
- The agreement is no broader than reasonably necessary to protect the employer’s interest in protecting its trade secrets.
Employers must provide a separate written notice of the terms of a non-compete and/or customer non-solicitation agreement:
- For a prospective employee, the notice must be given before the individual accepts a job offer.
- For current employees, notice must be given at least 14 days prior to the effective date of the agreement or the effective date of additional compensation or other change in conditions of employment that provides consideration for the agreement, whichever is earlier.
- Notices must be signed by prospective and current employees.
Non-compete and/or customer non-solicitation agreement with employees who primarily work or live in Colorado at the time of termination will be governed by Colorado law, and employers may not require employees to adjudicate them outside of Colorado.
The amendments apply to agreements entered into on or after August 10, 2022, but they do not apply retroactively to agreements signed before that date.
Violations of the amended law can result in penalties up to $5,000 per employee or prospective employee. The amendments also provide a private right of action to individuals, who may recover actual damages, declaratory/injunctive relief, and attorneys’ fees and costs.
The amendments do not affect employee non-solicitation agreements, restrictive covenants related to the sale of a business, agreements for the recovery of training and educational expenses, and “reasonable” confidentiality agreements, as defined by the statute.

If your organization has or plans to hire employees in Colorado, please reach out to your partners at Lake Effect to ensure you comply with the amended non-compete and customer non-solicitation agreement requirements.

Lake Effect is here to answer your questions about restrictive covenants and applicable state laws. We continue to monitor important legal and HR pments that affect employers. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Human Resources / Legal - 10/06/2022

Share the Love with Your Employees

It’s Valentine’s Day, the day we show a little extra love to those who are special to us. After the last two years, we all need a few more candy conversation hearts. Take a few moments today to take care of yourself and encourage your team to do the same. As we move through 2022, continue to practice self-care and provide your staff with resources to support their mental wellness, engagement, and professional development.

Take time for self-care. Leaders, we see you taking care of your staff, customers, and families. Thank you for all you do! Please keep your tank filled and battery charged so you can continue to take care of others. Take a moment for you!

Tell your staff you appreciate them. Everyone wants to be seen and appreciated. A heartfelt thank you can go a long way. You know your staff the best, so make the message meaningful to each recipient.

Provide your team members with the resources they need. More than ever before, employees are seeking flexible work schedules, hybrid work environments, professional growth, a supportive workplace culture, and relevant benefits. Ask your employees what they need to be successful in their roles while balancing their personal responsibilities. Here are a few ideas to bring that to life:

Remind your team members to take time for self-care – and remind them again
Lead by example by taking care of yourself
Implement a flexible work schedule
Consider a 4-day work week or reduced schedule
Review workloads, including the leaders within your organization
Develop a buddy system to check in on each other, especially in a remote or hybrid work environment
Create an environment where it feels safe to say “I need help on a project” or “I need a break to step away for an hour”
Encourage staff to volunteer in the community to support causes that are important to them
Post your Employee Assistance Plan (EAP) access information so it is easily accessible
Remind your employees about some of the hidden perks within your benefits plans: discounts on massage, credits for workouts, wellness resources and apps, and the like
Partner with local nonprofits to provide mental wellness resources to your staff
Implement or expand a coaching and development program to help employees align their professional development goals with your organization’s strategic initiatives
Practice empathic leadership, fostering a sense of meaningful connection and belonging

During the past two years, the Lake Effect team has been doing something together every month. We have done virtual 5K’s, laughed while attempting to do virtual workouts together, shared reading suggestions, and even tried cooking the same recipe together via Zoom. This month, we are challenging ourselves to do three things every day and we would LOVE you to join us in the challenge: do something each day for yourself physically, mentally, and professionally.

As we close on this Valentine’s Day, Jane is supporting a local restaurant, Sheila is heading out for a run, Holly is making memories with her kids, Leann is taking a vacation with her family, Jenn is volunteering her time delivering flowers, and Tricia is playing outside soaking up the sunshine. Tell us how you are taking care of yourself this month.

Human Resources - 02/14/2022

Update on OSHA’s Vaccination and Testing Emergency Temporary Standard

On December 17, 2021, the U.S. Court of Appeals for the Sixth Circuit lifted the stay placed by the Fifth Circuit and cleared the way for OSHA’s Emergency Temporary Standard (ETS) to proceed. A coalition of trade groups quickly appealed the decision to the U.S. Supreme Court for final determination.

Almost immediately, OSHA updated its site as follows:

Litigation Update
OSHA is gratified the U.S. Court of Appeals for the Sixth Circuit dissolved the Fifth Circuit’s stay of the Vaccination and Testing Emergency Temporary Standard. OSHA can now once again implement this vital workplace health standard, which will protect the health of workers by mitigating the spread of the unprecedented virus in the workplace.

To account for any uncertainty created by the stay, OSHA is exercising enforcement discretion with respect to the compliance dates of the ETS. To provide employers with sufficient time to come into compliance, OSHA will not issue citations for noncompliance with any requirements of the ETS before January 10 and will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard. OSHA will work closely with the regulated community to provide compliance assistance.

Per OSHA’s statement, employers will now have until January 10, 2022 to develop compliant policies and until February 9, 2022 to begin testing programs. Additionally, OSHA noted that no enforcement will start before January 10, 2022.

Lake Effect recommends that all covered employers (defined as those with at least 100 employees firm or corporate-wide at any time the ETS is in effect) proceed as if the ETS will be implemented, but recognize there may be further delays pending a decision from the U.S. Supreme Court. Please see Lake Effect’s prior blogs on OSHA’s ETS for more complete information about the provisions of the standard.

Lake Effect is here to answer your questions about COVID-19 compliance and will continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

COVID-19 Resources / Legal - 12/20/2021

Maintaining a Respectful Workplace Post-COVID

While some organizations have been on site through the pandemic, others have returned in recent months. Many others are planning a more robust employee return to office in the coming weeks. As more employees return to work in the office, employers may need to reestablish and remind employees about expectations of workplace conduct to foster and maintain a respectful workplace.

While employees have been working virtually, it is likely that their work clothes have become more casual, morning routines have become less regimented, and communications with coworkers have become more informal as they connected from their homes. Employers may want to review, revise, and remind employees about dress code and attendance policies. Further, employers should grant grace during the return, as employees navigate at-home responsibilities, commute times, new health and safety changes to their work environment, and their own well-being.

While the return may be welcome for some, others may struggle. Employees may experience micro-rejections and awkward moments deciding whether to hug, shake hands, or maintain social distancing with coworkers and others. Office banter may become more casual now that video calls introduced us to our coworkers’ personal lives outside the workplace. At the same time, in-person interactions may be stilted after months of virtual exchanges. This is the time for managers – and coworkers – to refine their empathic leadership and listening skills to understand the needs of others, and be sensitive to their feelings and thoughts.

There may also be times employees become upset with one another, feel hurt, over-share, delve into personal information (including vaccination status and health conditions), or even pass judgment on mask wearing or vaccination status. At its worst, there is a risk that these interactions may be perceived as harassment or discrimination. Consider scheduling your annual respectful workplace training to remind employees of appropriate workplace conduct to prevent harassment and discrimination. Keep in mind that the EEOC recommends employers provide such training on an annual basis, in person, and provided by an experienced trainer.

Lake Effect is here to answer your questions about empathic leadership and respectful workplace training. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

COVID-19 Resources / Human Resources - 07/27/2021

Twelve Months Later: How Has Your Organization Evolved?

The past 12 months have been a time like no other, forcing organizations to pivot quickly to accommodate a new reality. Now is the time to review handbook policies and internal processes that may have been revised on the fly in response to changing circumstances.

You can start by reviewing the ways your organization has changed since the start of the pandemic in terms of policy and process changes:

Did employees’ transition to work remotely?
Will they continue to do so? Did they start or expand use of personal devices for business purposes?
Have schedules or reporting relationships changed to adapt to new circumstances?
Have employees performed remote work from other states? (If they intend to remain there, you may need to register for general business, payroll, and/or unemployment tax purposes in that state. You may also need to review your current benefits offerings, as well specific employment laws for that state or local area. See our blog on state employment laws to consider with remote employees.)
Has your brand or business model changed in response to the pandemic? Do you need to update position descriptions or organizational charts?

As you identify changes that have occurred and adjustments that will be necessary, review your employee handbook and update relevant policies to reflect your decisions. (Note: We do not recommend changing the handbook for policies that are temporary in nature, such as allowing employees to work remotely only until worksites open again. Temporary policies can be freestanding.)

In addition, consider the impact that the past year had on your employees and your organization’s culture:

Some employees may have been working onsite throughout the pandemic. Others may be excited to return to the workplace, and still others may be cautious to return. This can result in actual or potential conflicts between employees who may judge or simply not understand another’s perspective.
Some employees may be experiencing mental health issues resulting from isolation or other challenges encountered over the past year, while others are thrilled to be out of the house and back in the office.
Some employees may feel the stress of changing family routines and expectations, and they may need additional time to adapt or help family members adapt.
Some employees may be grieving the loss of a loved one during the pandemic, while others have experienced minimal personal impact.
Some employees may need more time than others to reacclimate to their commute and former schedule at a worksite.

As your employees and you address these difficult issues, you can reaffirm a culture of inclusion, acceptance, and respect with effective planning, clear communication, flexibility, and empathy.

Lake Effect is here to answer your questions about how to handle these important workplace transitions and evolution, while maintaining your culture and supporting your mission and vision. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

COVID-19 Resources / Human Resources - 03/10/2021

Learning To Build A Stronger Teams In A Virtual World

Their positive attitudes carry an edge of lighthearted humor that paints the HR field with a ‘can do’ attitude for tackling challenges and employment law changes.

Andrea Conrad, Numbers 4 Nonprofits Inc

Many of us are starting to think about what our workspaces will look like when we are able to return more consistently or completely to the workplace. These options include returning full time to the office, continuing to work remotely, or a blend of the two. No matter which option your organization chooses for its new normal, leaders will need to focus time on retaining talent by nurturing workplace culture and offering professional development opportunities to team members.

As you nurture your workplace culture, consider surveying your team members to learn what helped them be successful in their work and connect with their coworkers while working remotely. When considering professional development, evaluate your current practices and how they can be adjusted to fit and support your new work environment. If your team members will be working virtually – fully or partly – consider how you can offer them virtual coaching and professional development. Employees have proven that they can work, grow, and learn successfully in a virtual world.

Life-long learning is important to all of us at Lake Effect, so we have adapted our in-person workshops to engage with a virtual audience. We love training in-person, but we have found that we also connect, engage, and share knowledge as effectively over Zoom or Microsoft Teams. We realize that Zoom fatigue is real, so we have shortened our workshops to 1-2 hour sessions. To continue to support our clients, partners, and their employees, we offer a variety of in-person and virtual workshops in the following areas:

Aligning Strategic Plan & HR
Coaching
Communication
Conflict Resolution
Crisis Management

Culture Building
Employee Development
Legal Compliance
HR Compliance

Management Training
Performance Management
Respectful Workplace
Team Engagement

Download Workshop Brochure

Human Resources - 03/08/2021

State Employment Laws to Consider with Remote Workers

Employers across the country – from small nonprofits to multi-national corporations – are grappling with whether and how to maintain a remote workforce with employees in multiple states. There are distinct advantages to allowing employees to work from their home, wherever that may be, and opening the applicant pool to a remote workforce. (See our previous blog on how to sustain company culture with a remote workforce.)

When evaluating remote employment plans, it is critical for employers to review the state and local laws that apply to workers outside of Wisconsin. Many of those laws apply even if an employer has only one part-time employee working in the remote location. Below are some of the important legal issues to consider:

Paid Sick Leave. States and municipalities across the country have enacted mandatory paid sick leave laws, most of which apply to all employees working in the particular state, county, or city. An employer’s PTO policy generally will comply with the paid sick leave law if the PTO provides a specified minimum level of benefits. However, employers should review the specifics of any relevant paid sick leave laws, including the laws’ required notices to employees. Those notices may need to be included in a handbook and/or with paystubs.
Paid Family and Medical Leave. At least nine states and the District of Columbia have also enacted mandatory paid family and medical leave laws that apply to all part-time and full-time employees working in the state or district. The leave programs differ in the amount of leave that must be provided, benefits, eligibility requirements, required notices, and how the programs are funded. Employers should review these laws if applicable and ensure their leave policies comply.
Employee agreements. State laws vary dramatically as to the enforceability of non-competition and non-solicitation agreements. Most states require these agreements to include limitations on their geographic scope and length of restriction. Some states also require employers to give the employee something, such as a bonus or promotion, in exchange for signing a non-compete or non-solicitation agreement while others require specific language be included in these agreements. Some states prohibit all non-competes (D.C. is currently considering such legislation) while some prohibit non-competes with employees who are paid below a specified wage threshold. To reduce the risk of an employee agreement being struck down by a court, it is important to review the applicable state laws and incorporate all requirements.
Pay history and criminal background checks. When recruiting nationwide, employers should ensure they are complying with the growing number of laws limiting or prohibiting inquiries into an applicant’s pay history or criminal background. These laws were largely enacted to create more opportunities for women and people of color. They also reflect HR best practices. Inquiring into pay history and/or criminal background may unnecessarily limit the applicant pool and hinder efforts to create a more inclusive workplace culture.
Anti-harassment training. At least six states, including Illinois, require employers to provide anti-harassment training to employees and supervisors working in their state. Other states encourage, but do not require, anti-harassment training. Even if not legally required or encouraged, we recommend employers provide anti-harassment training at least every other year.
Business Expenses. As more employees are working from home, employers should review their business expense policies for compliance with the laws of the state in which employees work. For example, California and Illinois have specific laws on what business expenses must be reimbursed by an employer.
Drug testing. Drug testing laws vary from states such as Minnesota, with strict policy and process requirements to states such as Wisconsin where the laws are more lenient. Employers who require drug tests also should take into consideration whether the recreational and/or medicinal use of marijuana has been legalized in the state where the employee works. Over 30 states and municipalities have legalized marijuana in some form.
General employment laws. Each state has enacted its own general employment laws covering, for example, minimum wage, other wage and hour requirements, workplace safety, workers’ compensation, unemployment insurance, and anti-discrimination. Employers should review these laws and ensure their employee handbook, policies, trainings, and practices are in compliance.

Lake Effect is here to answer your state and federal employment law and HR questions related to a remote workforce. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Legal - 01/14/2021

DOL Issues Timely Wage and Hour Rule and Guidance

***Update, January 27, 2021***

UPDATED BY EXECUTIVE ORDER – CLICK HERE FOR UPDATED INFORMATION

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Over the last few weeks, the Department of Labor (DOL) has been busy ticking items off its to-do list. We have seen action on everything from tip pooling to employee notices to travel time.

Tip Pooling and Tip Credits
In October, 2019, Lake Effect blogged on the Department of Labor’s (DOL) proposed new Fair Labor Standards Act (FLSA) regulations on tip pooling, tip credit, and payments to tipped employees. The DOL published the Final Rule on December 22, 2020, implementing most of the changes to tip pooling and tip payments that were proposed in 2019. See also a helpful summary and FAQ provided by the DOL. The Final Rule is effective March 1, 2021.

This new rule will be helpful for restaurant, bar, and hospitality employers making plans to expand or resume operations in the coming months. Many hospitality employers have implemented – or may now consider implementing – tip pools to supplement employee compensation, improve morale, and incentivize all workers to maximize performance. In short, tip pooling can be a useful tool to enhance employee recruitment and retention.

The new tip credit and tip pooling regulations include the following:

No tips for managers, supervisors, or employers: The regulations expressly prohibit employers from keeping employees’ tips and likewise prohibit managers and supervisors from sharing any employee tips, regardless of whether the employer takes a tip credit and regardless of the type of tip pool implemented. Employers who retain pooled tips or share them with managers or supervisors will be subject to civil penalties under the new regulations.
- Relying on the FLSA duties test, a manager or supervisor is defined as “any employee (1) whose primary duty is managing the enterprise or a customarily recognized department or subdivision of the enterprise; (2) who customarily and regularly directs the work of at least two or more other full-time employees or their equivalent; and (3) who has the authority to hire or fire other employees, or whose suggestions and recommendations as to the hiring or firing are given particular weight.” This also includes any workers “who own at least a bona fide 20 percent equity interest in the enterprise in which they are employed and who are actively engaged in its management.”
No 80/20 rule for tip credits: The regulations remove the long-standing 80/20 rule that required employers who take a tip credit (see our prior blog for an overview of tip credits) to carefully track the amount and timing of non-tipped work that employees perform. Under the new regulations, employers may take the tip credit regardless of the amount of non-tipped work an employee is performing provided the normally non-tipped work is performed “contemporaneously with” or “for a reasonable time immediately before or after” their normally tipped work duties.
Employers who take a tip credit are limited to a traditional tip pool: Employers who take a tip credit may create only a “traditional tip pool,” which is limited to employees who “customarily and regularly” receive tips.
Employers who do not take a tip credit have two tip pool options: Employers who do not take a tip credit now have two options for tip pooling. Employers may create a “traditional tip pool” and/or a “nontraditional tip pool,” which includes employees who do not regularly receive tips, such as cooks and dishwashers.
Record-keeping of tip credit and tip pool: Employers who take a tip credit or create tip pools must identify on their payroll records each employee who receives tips and maintain records of the weekly or monthly amount of tips received by employees, as reported by the employee to the employer. Employers can rely on employees’ information tracked on IRS Form 4070.
Timing of payment of tip pool tips: Employers must pay their employees the pooled tips no later than the date on which regular wages are paid to employees and, for credit card based tips, “as soon as practicable after the regular payday.” This further supports the requirement that employers must not retain tips.

Electronic Posting of Required Labor Law Posters
Acknowledging that telework will likely continue for the foreseeable future in many workplaces, the DOL provided new guidance regarding labor law posters. In a field assistance bulletin issued on December 29, 2020, the DOL confirmed that employers can satisfy applicable employee notice obligations by providing required labor law postings to employees on the internet or an intranet. Employers also must display hard copies of the posters in the actual workplace for applicants and employees who are unable to telework.

Compensation for Personal Activity Travel Time
Again acknowledging the continuation of telework, the DOL issued a wage and hour opinion letter on December 31, 2020 addressing the issue of travel time to/from work and home when an employee works part of the day remotely and part of the day in the worksite, and engages in personal activities during their travel time. The DOL reiterated that a non-exempt employee does not need to be paid for time the employee is off duty and is not working, nor for commuting time. The DOL also reinforced that the continuous workday doctrine would not apply to the fact patterns presented by the employer because, during the travel time for personal activities, the employee was clearly off duty, could use their time for their own purposes, and could choose when they would resume work at home or at the worksite. Likewise, the employee’s commuting time to and from work, during which time the employee performed no work duties, was not compensable commuting time.

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For additional information and discussion of DOL rule making, rules, and guidance, please see Lake Effect’s prior blogs on wage and hour issues. We will continue to closely monitor all developments in this area and provide you with important updates.

Lake Effect is here to answer your questions about federal and state issues affecting employers. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Lake Effect HR & Law is in business to maximize each client’s workplace potential with a commitment to kindness, true partnership, and exceptional service.

Legal - 01/05/2021

President Trump Signs COVID-19 Emergency Relief Bill

After an unexpected delay during which he strongly criticized the stimulus legislation passed by Congress on December 21, President Trump signed the $900 billion COVID-19 emergency relief bill into law on December 27, 2020. The new legislation aims to help individuals, businesses, and organizations across the country to offset the devastating economic effects of the COVID-19 pandemic.

Key provisions of the Emergency Relief bill include:

Direct payments to individuals: provides a one-time payment of $600 to individuals earning up to $75,000 per year. Couples earning up to $150,000 per year will receive $1,200. Caregivers will receive an additional $600 for each dependent child.
Additional Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and other small business support: provides additional funds for first and second PPP loans to eligible recipients, with dedicated funds for small and minority-owned businesses, as well as additional small business and EIDL grants.
- Most new provisions apply to PPP loans made before, on, or after date of enactment of current stimulus bill.
- PPP loan eligibility is expanded to include housing cooperatives, news organizations and 501(c)(6) nonprofit organizations, but publicly traded companies are specifically excluded from new PPP loan eligibility.
- Forgivable PPP loans may be used to cover operations expenses (e.g., software, cloud computing, accounting needs), property damage due to public disturbances, supplier costs, and PPE expenditures; employer-provided group insurance benefits are included in payroll costs (e.g., group life, disability, health, vision, dental insurance).
- Certain organizations with fewer than 300 employees may receive a second PPP loan of up to $2 million. The 60/40 cost allocation between payroll and non-payroll costs for full forgiveness will continue to apply.
- Eligible organizations must have experienced a 25% drop in gross receipts in 2020 compared to a comparable quarter in 2019.
- The covered period (whether an employer elects an 8-week or 24-week period) for all PPP loans is extended through 3/31/21.
- Deductions are allowed for otherwise deductible business expenses paid for with proceeds of a PPP loan that is forgiven.
- Recipients of PPP loans under $150,000 may utilize a simplified forgiveness request process.
- Organizations that receive both an EIDL grant and a PPP loan need not deduct forgiven amount of EIDL grant from the forgivable amount of their PPP loan.
- SBA is authorized to award grants to eligible live venue operators, theaters, performing arts organizations, museums, motion picture theaters, etc. to be used for payroll costs, rent, utilities, and Personal Protective Equipment (PPE).
- Additional targeted EIDL grant funding is provided for low-income communities, and the covered period for Emergency EIDL grants is extended through 12/31/21.
Unemployment Assistance: provides for supplemental federal unemployment benefits and extends time periods for receiving unemployment benefits under state and federal pandemic programs.
- Federal Pandemic Unemployment Compensation (FPUC) program will provide a supplement of $300 a week to all state and federal unemployment benefits recipients from 12/26/20 until 3/14/21.Because the legislation was not signed until 12/27/20, recipients may experience a one-week gap in benefits.
- Pandemic Unemployment Assistance (PUA) is extended until 3/14/21, and recipients getting benefits as of that date may continue to do so through 4/5/21; maximum number of weeks of PUA benefits is increased from 39 to 50.
- Pandemic Emergency Unemployment Compensation (PEUC) program is extended until 3/14/21, and recipients getting benefits as of that date may continue to do so through 4/5/21; maximum number of weeks of PEUC benefits is increased from 13 to 24.
- States must develop methods to address situations in which unemployment compensation recipients refuse to accept offers of suitable work without good cause, including a method for employers to notify the state when an individual refuses employment.
Employee Retention Credit extended, and eligibility expanded: extends Employee Retention Tax Credit under the CARES Act through 6/30/21.
- Tax credit rate is increased from 50% to 70% of qualified wages, and the limit on per-employee creditable wages is increased from $10,000 per year to $10,000 per quarter.
- Eligible criteria are expanded to include employers experiencing a 20% (vs. 50%) reduction in year-over-year gross receipts and employers receiving PPP loans.
Payroll tax credits for FFCRA leaves extended: guarantees that employers who continue to provide paid sick and family leaves in accordance with prior FFCRA requirements will continue to receive payroll tax credits through 3/31/21. Tax credits apply as if the corresponding employer mandates were extended through 3/31/21.Note that employers are no longer required to provide FFCRA paid leaves, but the continuing tax credits provide an incentive for them to do so.
- Employers who want to take advantage of these tax credits must follow the FFCRA leave requirements set forth in the original Act. See our prior blogs on this issue and consult with experienced HR and legal advisors to ensure FFCRA compliance and receipt of the tax credits.
Extension of deferred payroll taxes: extends the repayment deadline until 12/31/21 for employers who deferred withholding of employees’ share of social security taxes. Penalties and interest on deferred unpaid tax liability will not begin to accrue until 1/1/22.
Extension of time for distribution of CARES Act funds: extends for one year, or until 12/31/21, the time for states and local governments to distribute Coronavirus Relief Funds previously allocated under the CARES Act.
Relief for transportation industry: provides funds to support transit industry including airlines, airline contractors, airports, state departments of transportation, Amtrak, and the motorcoach, school bus and ferry industries. In order to receive funds, airlines must recall involuntarily furloughed employees, provide backpay to returning employees, and guarantee minimum air transportation service.
COVID-19 vaccines, testing, tracing, and mitigation efforts: provides dedicated funds to procure and distribute vaccines and direct financial aid to states for testing, tracing, and COVID-19 mitigation programs, including grants designated for underserved communities; provides additional funds to support mental health, health care providers, COVID-19 research, and the Indian Health Service.
Emergency rental assistance: provides $25 billion for a federal emergency rental assistance program to be administered by state and local governments. Funds will be used to help eligible families struggling to pay rent, utilities, and other housing-related expenses. The CDC’s previous eviction moratorium is extended through 1/31/2021.
Broadband and telehealth: provides funds to increase broadband access for low-income families, tribal communities, and rural communities, and appropriates additional funding for telehealth programs.

Please note that this is not an exhaustive list of all provisions included in the Emergency Relief Bill. We encourage you to consult with your business and tax advisors about the Emergency Relief Bill and its impact on your organization and employees.

For additional and information and discussion of FFCRA and PPP loans, please see Lake Effect’s prior blogs on those topics. We will continue to closely monitor all developments in this area and provide you with important updates.

Lake Effect is here to answer your questions about federal and state pandemic relief packages affecting employers. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Lake Effect HR & Law is in business to maximize each client’s workplace potential with a commitment to kindness, true partnership, and exceptional service.

COVID-19 Resources / Legal - 12/28/2020

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employees

Their positive attitudes carry an edge of lighthearted humor that paints the HR field with a ‘can do’ attitude for tackling challenges and employment law changes.

Andrea Conrad, Numbers 4 Nonprofits Inc

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