Governor Evers Recommends Continued COVID Mitigation Efforts

On November 10, 2020, Governor Evers presented a public address and signed Executive Order #94, strongly advising that all residents and businesses continue following stringent COVID-mitigation efforts. While this order has no enforcement capability, it serves as a reminder to minimize interactions outside of households. For businesses, it provides no new restrictions, but it reiterates the importance of permitting employees to work from home wherever feasible and maintaining preventive measures in the workplace for employees and customers alike.

Lake Effect is here to answer your questions about protecting your employees and complying with state and local public health orders. We continue to monitor important legal and HR developments, including 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.

Employees Must Notify Their Employers of Positive COVID-19 Result

According to a November 4, 2020 blog post, Public Health Madison & Dane County (PHMDC) will no longer notify employers that an employee has tested positive for COVID-19 unless the employee works for a school, or a childcare, healthcare, or congregate living facility. Instead, employees are responsible for notifying their employer if they tested positive, and working with their employer to identify other employees, customers, or clients who have been in close contact with the employee who tested positive. This is a significant shift in Dane County’s contact tracing due to the high number of positive tests in the community.

Dane County employers should follow guidance from PHMDC if an employee tests positive. Employers should then, to the best of their ability, notify other employees, customers, or clients who had close contact with the affected employee. As a reminder, see our prior blog for the new “6-15-24-48 analysis” in determining who has had “close contact.”

Lake Effect is here to answer your questions about protecting your employees and complying with state and local public health orders. We continue to monitor important legal and HR developments, including 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.

UI Notice Required at Time of Separation of Employment

Beginning November 2, 2020, Wisconsin employers must notify employees at the time of separation from employment of the availability of Unemployment Insurance (UI) benefits. Notice of unemployment rights can be given to employees by email, text message, letter, or by providing the DWD printed poster in person or by mail.

The content of the notice should include when and how an employee can file for unemployment, unemployment resources, and UI contact information. The DWD provides suggested language to include in end of employment communications to employees, including the digital poster. We encourage employers to use the suggested language and the customizable digital poster. This poster needs to be posted at all times in your workplace or electronically in the case of remote workers.

Note that providing the notice does not necessarily mean that employees will meet the requirements of the Wisconsin UI eligibility laws and/or receive benefits.

Lake Effect is here to answer your questions about employee onboarding, offboarding, or compliance with applicable state and federal employment laws. We continue to monitor important legal and HR developments, as well as COVID-related updated from federal, state, and local authorities. Please keep watching our blogs and emails from us for important legal updates and HR best practices. Contact us at info@le-hrlaw.com or 1-844-333-5253.

Career Coaching Services

In response to continuing financial challenges caused by the COVID-19 pandemic, employers may be compelled to consider layoffs, furloughs, or terminations. Even when faced with such difficult decisions, employers can take steps to care for their workers and help them transition to new opportunities. Organizations might consider offering career coaching and outplacement advisory services to affected staff. These services provide support, help and guidance to workers as they initiate new job searches or contemplate career changes.

Lake Effect can be a valuable partner in these efforts. Our experienced HR advisors and coaches can assist by meeting individually with staff, reviewing their skills, interests, and goals, and rebuilding confidence to explore new opportunities. Lake Effect’s coaches can also help displaced employees develop or update a resume and cover letter, improve interview techniques, or apply the most effective job search methods best suited to the employees’ desired career path. By applying DiSC training to the tailored coaching, employees receive personalized insights that deepen their understanding of their own preferences and tendencies in the workplace. These personalized insights can help workers be more effective interviewers and strengthen future workplace interactions.

At Lake Effect, we are committed to helping organizations maximize their workplace potential with a commitment to kindness, true partnership, and exceptional service. During challenging times, this means supporting clients as they strive to boost morale, maintain a positive culture, and help current and former employees achieve success. Our career coaching and outplacement advisory services may provide one way to help outgoing employees secure a bright future.

Your partners at Lake Effect HR & Law are ready to answer your questions about career coaching and outplacement advisory services. Contact us at info@le-hrlaw.com or 1-844-333-5253.We are also closely monitoring the impact of COVID-19 on all aspects of the workplace. Keep watching for blogs and emails for important legal updates and HR best practices.

DOL Announces Proposed Rule on Independent Contractor Status under the FLSA

On September 22, 2020, the US Department of Labor proposed a new rule to clarify whether a worker will be classified as an independent contractor or an employee under the Fair Labor Standards Act (“FLSA”). The proposed rule will be available for review and public comments for 30 days after it is published in the Federal Register.

The proposed rule adopts an “economic reality” test to determine a worker’s status. That test focuses on whether a worker is economically dependent upon an employer for work or is truly in business for themselves . Economic dependence is the ultimate inquiry. In applying this test, the two most important factors are:

  • Who exercises substantial control over key aspects of work performance? Where the worker sets their own schedule, selects projects, and retains the ability to work for an employer’s competitors, this factor will weigh in favor of independent contractor status. In contrast, where the employer sets the schedule, controls the workload, and requires the worker to perform work exclusively for that employer, this factor will weigh in favor of employee status.
  • Does the worker have an opportunity for profit or loss (i.e. an ability to affect their earnings by the exercise of their own management and initiative)? If the worker can earn more or lose profits based upon their own managerial skills or business acumen, for example by hiring helpers or choosing particular equipment or materials, this factor will weigh in favor of independent contract status. If the worker is unable to affect their earnings or is only able to do so by working more hours or working more efficiently, this factor will weigh in favor of employee status.

Other factors to be considered in assessing independent contractor vs. employee status under the FLSA include the amount of skill required for the work, the permanence of the working relationship between the parties, and whether the work performed by the individual is a component of the employer’s integrated production process for a good or service.

The DOL’s proposed rule emphasizes that the parties’ actual practice is key to the assessment of independent contractor status. What the parties state in a contract or what may be theoretically possible under a work arrangement is of little relevance if it differs from the reality of their working relationship.

Employers should keep in mind that many states have adopted their own tests for independent contractor status under their respective state wage and hour laws; these tests can differ from state-to-state. The tests may also vary based upon the state law issue being addressed, i.e. unemployment compensation eligibility, workers’ compensation coverage, employment tax liability, etc.

The issue of independent contractor versus employee status continues to challenge employers across all sectors throughout the U.S. We will continue to closely monitor the DOL’s proposed rule and other state-based developments in this area. In the meantime, it might be a good time to review your independent contractor agreements and work relationships within your organization. Your partners at Lake Effect HR & Law can help you ensure compliance while retaining the flexible and dynamic workforce that your organization needs. Contact us at info@le-hrlaw.com or 1-844-333-5253.

CARES Act Signed Into Law

On March 28, 2020, President Trump signed into law the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’’ or the ‘‘CARES Act.’’ The Act is part of a continuing effort to help businesses and American workers confronting the devastating effects of the COVID-19 pandemic. Key provisions of the Act are included here.

Lake Effect HR & Law, LLC
(844) 333-5253 (LAKE)
info@le-hrlaw.com

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