Mask mandates end, but employers have options

With mask orders lifting around the country, many employers are left wondering what to do in their own workplace. In most communities, employers have several options, including the following:

  • Remove all masking requirements in your workplace or place of business
  • Require all employees and visitors to wear masks at all times
  • Allow fully vaccinated employees and visitors to be maskless, but require unvaccinated employees and visitors to wear masks
  • Allow employees and visitors to report their vaccination status using the honor system
  • Require employees and visitors to provide proof of vaccination status, cautioning them to provide only vaccination documentation, not other medical information

After making such decisions, employers should communicate expectations clearly to all staff and visitors. Employers should also be mindful of treating all employees fairly and with kindness and respect regardless of their masking decisions or vaccination status.

Lake Effect is here to answer your questions about preventive measures, vaccinations, and safely reopening your workplace. We 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.

Wisconsin Communities’ Face Covering Requirements Expiring

Outagamie County, Dane County, and the city of Milwaukee have joined the growing list of communities across the country that are lifting their mask and other COVID-related public health orders. Outagamie County lifted its face mask requirements on May 13, 2021. Public Health Madison & Dane County (PHMDC) announced on May 18, 2021 that its public health orders and mask requirements will expire on June 2. On the same day, Mayor Tom Barrett announced that the City of Milwaukee will lift its public health orders and mask requirements on June 1.

These announcements follow the guidance released by the Center for Disease Control (CDC) that fully vaccinated individuals can safely stop wearing masks outdoors and in most public indoor settings. The federal Occupational Safety & Health Administration (OSHA) has indicated that it will release updated workplace safety requirements for employers based on CDC’s guidance. We will keep you informed with updates from OSHA.

Without a mask mandate, employers have several options. Employers may lift all mask requirements; require masks only for individuals who are not fully vaccinated; or require masks for all employees, customers, clients, and/or others on-site. As employers grapple with the best decision for their organization, they should work with HR professionals and employment attorneys to address issues such as:

  • What is your organizational culture?
  • How do your employees feel about returning to the workplace with or without masks?
  • Are you requiring vaccines?
    • If so, have you set up a legally compliant infrastructure to address, among many other things, reasonable accommodations for disabilities and sincerely held religious beliefs, confidentiality, and consistency among your workforce?
    • If you have employees in multiple states, have you checked the laws, including local or state health orders, to ensure vaccinations can be required?
  • If you will allow vaccinated employees to work without masks, are you asking for proof of vaccination or relying on an attestation from employees?
    • Have you set up a legally compliant process for checking vaccination status?
  • If you will not require masks at all, have you adopted cleaning and hygiene protocols to ensure you can satisfy your duty to provide a safe workplace for your employees?

Lake Effect is here to collaborate with you on questions about workplace safety, employees returning to work, and employee vaccinations.

DOL Withdraws Final Rule on Independent Contractor Status under FLSA

On May 5, 2021, the Department of Labor (“DOL”) announced a new final rule withdrawing the “Independent Contractor Status Under the Fair Labor Standards Act” final rule (Independent Contractor Rule) that had been published on January 7, 2021, to take effect on March 8, 2021. Of note, the DOL is not issuing new federal guidance on independent contractor status with this new rule. The DOL indicated that the January 2021 rule “is inconsistent with the FLSA’s text and purpose, and would have a confusing and disruptive effect on workers and businesses alike. . . .” The new Rule will be published on May 6, 2021.

Employers should keep in mind that many states, including Wisconsin, have adopted their own tests for independent contractor status. These state laws can vary widely from state-to-state, and even within a state, depending upon the issue being addressed (i.e., unemployment eligibility, wage and hour, tax liability). Lake Effect continues to monitor federal and state laws and guidance relating to independent contractor status, and we will keep you apprised of developments in this area.

Lake Effect is here to answer your questions about independent contractors, FLSA, and labor laws. 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.

Major Provisions of Final Tip Pool Rule Become Effective April 30, 2021

Three main provisions of the US Department of Labor’s final tip pool rule take effect April 30, 2021. Other parts of the rule are delayed and could be further revised by the Biden Administration. For a complete discussion of the final rule, issued on December 22, 2020, please see Lake Effect's prior blog on this topic.

The following provisions of the final tip pool rule take effect April 30, 2021:

  • Employers, managers, and supervisors are prohibited from sharing or keeping any portion of tips received by employees; this prohibition applies regardless of whether the employer takes a tip credit and regardless of the type of tip pool implemented.
  • Employers who do not take a tip credit 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. Employers who take a tip credit can only create a traditional tip pool.
  • An employer who takes a tip credit or creates either type of tip pool must identify on its payroll records each employee who receives tips and maintain records of the weekly or monthly amount of tips reported by each employee.

The effective date of the remaining provisions of the final tip pool rule has been delayed until December 31, 2021. Those delayed provisions address:

  • The assessment of civil monetary penalties against employers who “willfully” or otherwise violate the FLSA’s prohibition against keeping employee tips.
  • The application of the FLSA tip credit to tipped employees who perform tipped and non-tipped duties. The effective date of these provisions is delayed until December 31, 2021.

Lake Effect is here to answer your questions about federal and state wage and hour laws that impact employers across all industries.  We 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.

IRS Issues Guidance on ARPA Tax Credits and COVID-19 Vaccinations

On April 21, 2021, the IRS and the US Treasury Department published a fact sheet on the tax credits available under American Rescue Plan Act (ARPA) to employers who provide paid leave to employees who get COVID-19 vaccinations. ARPA extends tax credits previously established under the Families First Coronavirus Response Act (FFCRA) to reimburse employers for the cost of voluntarily providing paid sick and family leave to employees due to COVID-19. For a complete discussion of the ARPA and FFCRA leaves, please see Lake Effect's prior blog. The new fact sheet confirms the following:

  • Employers eligible for the tax credits are those with fewer than 500 employees, including governmental employers, other than the federal government and federal agencies.
  • Eligible employers may receive tax credits for wages paid for leave taken by employees to receive COVID-19 vaccinations or recover from any illness or condition related to such vaccinations.
  • As set forth in Lake Effect’s prior blog on FFCRA tax credits, the credits cover 100% of the costs of qualified sick and family leave wages, the employer’s share of social security and Medicare taxes on those wages, and any qualified health plan expenses allocable to those wages.
  • Eligible employers may claim tax credits for sick and family leave paid to employees to receive or recover from COVID-19 vaccinations from April 1, 2021 to September 30, 2021.
  • Employers may use IRS Form 941 to claim the tax credits and can keep the federal employment taxes that they otherwise would have deposited up to the full amount of the credit for which they are eligible. Employers may also request an advance of the credits by filing IRS Form 7200.
  • Self-employed individuals may claim comparable tax credits on their Individual IRS Form 1040.

Employers should work closely with their tax advisors to understand the tax implications of COVID-related paid sick and family leaves, including those covering vaccinations. We are closely monitoring developments relating to COVID-19 and the workplace. Keep watching for blogs and emails from your Lake Effect team for important legal updates and HR best practices. The attorneys and HR professionals at Lake Effect HR & Law are ready and willing to help. Contact us at info@le-hrlaw.com or 1-844-333-5253.

Call to Action: New COBRA Notices Due Soon

On April 12, 2021, Lake Effect HR & Law posted a blog notifying our readers about new COBRA provisions under the American Rescue Plan Act of 2021 (ARPA). We encourage employers who are federal or state COBRA covered employers to take prompt action, as deadlines for notices are upon us.

  • Starting April 1, 2021, employers are required to send a new ARPA COBRA summary fact sheet and new required COBRA notice to covered employees and their dependents who have had qualifying events.
  • By May 31, 2021, employers are required to send a new ARPA COBRA summary fact sheet and new extended COBRA election notice to covered employees and their dependents who had certain qualifying events between October 1, 2019 and April 1, 2021.

Please see our prior blog for live links to the required ARPA COBRA summary fact sheet and new COBRA notices. As always, if you need assistance or advice on administering these new COBRA notices, please reach out to the HR professionals and attorneys at Lake Effect HR & Law. Please know that employers and plans may be subject to an excise tax under the IRS Code for failing to satisfy the new COBRA requirements. The tax may be as much as $100 per qualified beneficiary.

We continue to monitor developments and guidance relating to the American Rescue Plan Act of 2021 and other legislative efforts to address the continuing impact of the COVID-19 pandemic. We will provide you with employment-related updates on these topics as they arise.

American Rescue Plan Act Extends and Expands Voluntary Employer-Provided FFCRA Leaves

Under the American Rescue Plan Act of 2021 (ARPA), employers who opt to continue paid leaves originally required under the Families First Coronavirus Response Act (FFCRA) can provide a greater amount of paid leave for a broader range of reasons and still receive tax credits to cover 100% of costs related to those leaves.

FFCRA originally required employers with fewer than 500 employees to provide employees with 2 weeks of Emergency Paid Sick Leave (EPSL) and up to 12 weeks Emergency Family and Medical Leave (EFML) (if employees satisfied one of the reasons set forth under FFCRA. For a complete review of FFCRA leaves and requirements, see Lake Effect's prior blogs on this topic. These mandatory leaves expired December 31, 2020. The stimulus bill passed on December 22, 2020, permitted employers to voluntarily allow employees to use any remaining EPSL or EFML by March 31, 2021 and still receive the related tax credits.

The ARPA further extends and expands original FFCRA leave allowances and related employer tax credit provisions as follows:

  • Time period extended: Covered employers can continue to provide employees with EPSL and EFML through September 30, 2021 and receive tax credits to cover 100% of costs associated with such leaves. Covered employers can decide to offer both EPSL and EFML, only one of them, or neither.
  • Additional 10 days of EPSL: Covered employers may provide employees with an additional 10 days of EPSL between April 1, 2021 and September 30, 2021 and receive tax credits to cover 100% of related costs.
  • New reasons for EPSL: In addition to the previous qualifying reasons set forth in FFCRA, employers may provide employees EPSL for time spent awaiting COVID-19 test results, obtaining a COVID-19 vaccine, or recovering from “any injury, disability, illness or condition related to such” vaccine. Pay for these new leave reasons will be at 100% (up to a max of $511/day or $5,110 for 10 days).
  • Additional 12 weeks of EFML: Covered employers may provide employees with an additional 12 weeks of EFML (all at 2/3 pay, up to a maximum of $12,000) between April 1, 2021 and September 30, 2021. Note this is an increase from 10 to 12 weeks of paid leave, and from $10,000 to $12,000 in maximum pay per employee.
  • New reasons for EFML: Employers may provide employees EFML for all the qualifying reasons permitted for use of EPSL, including time spent awaiting COVID-19 test results, obtaining a COVID-19 vaccine, or recovering from the effects of such vaccine.
  • New non-discrimination requirement: Employers will not receive tax credits for costs associated with voluntary EPSL or EFML if it discriminates in favor of highly compensated employees, full-time employees, or longer-tenured employees in providing leaves.

We continue to monitor developments and guidance relating to the American Rescue Plan Act of 2021  and other Biden Administration efforts to address the continuing impact of the COVID-19 pandemic. We will provide you with employment-related updates on these topics as they arise.

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 workplaceand still others may be cautious to returnThis 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 froisolation 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.

New Law Limits COVID-19 Civil Liability For Wisconsin Employers

Governor Evers signed 2021 Wisconsin Act 4 into law on February 26, 2021, providing Wisconsin employers with broad protection from civil law claims relating to COVID-19. Effective March 1, 2020, Wisconsin businesses, schools, and non-profit organizations are immune from civil liability for the death of or injury to any individual or damages caused by an act or omission resulting in or relating to exposure to COVID-19. The law applies retroactively to all claims arising on or after March 1, 2020, except it will not apply to lawsuits actually filed before March 1, 2020. Furthermore, immunity under the law will not apply to an entity whose actions or omissions involve reckless or wanton conduct or intentional misconduct.

2021 Wisconsin Act 4 provides employers substantial protection from civil lawsuits brought by employees, contractors, customers, students, vendors, and family members of these individuals. Despite the new protections, Wisconsin employers should continue to closely monitor and follow guidance from local, state, and federal public health officials on COVID-19 safety and mitigation measures. Failure to do so could constitute evidence of reckless, wanton, or intentional misconduct, which would negate the civil immunity afforded under the Act 4. Such a failure could also trigger claims under OSHA’s general duty clause for failure to provide employees a work environment free from recognized hazards. Employers should also note that employees can continue to seek remedies under applicable workers’ compensation statutes.

OSHA Recommends Measures to Reduce Workplace Spread of COVID-19

Responding to a directive from the Biden administration, OSHA posted new guidance on January 29, 2021 to help non-healthcare employers identify COVID-19 risks and implement effective measures to minimize its spread in the workplace. The guidance is not a standard or regulation, and it creates no new legal obligations. It is advisory in nature, containing recommendations and detailed descriptions of existing safety and health regulations. However, it will likely be one yardstick used to measure compliance with OSHA’s “General Duty Clause,” which requires employers to provide workers with a workplace free from recognized hazards that cause or are likely to cause death or serious harm.

The new guidance specifies that implementing a workplace COVID-19 prevention program is the most effective way to reduce its spread at work. An effective program includes such elements as:

  • Assigning a workplace coordinator responsible for COVID-19 issues.
  • Identifying where and how employees might be exposed at work.
  • Identifying a combination of measures to limit the spread of COVID-19 at work including separating and sending home potentially infected employees, implementing physical distancing and barriers, requiring face coverings, improving ventilation, and using applicable PPE, as well as good hygiene and cleaning/disinfection practices.
  • Providing reasonable accommodations or modifications to workers at higher risk of severe illness.
  • Effectively communicating with employees about COVID-19 in a language they understand and providing them with guidance on screening and testing.
  • Educating and training employees on COVID-19 policies and procedures.
  • Minimizing the negative impact of quarantine and isolation on workers by allowing telework or work at alternative locations where possible.
  • Recording and reporting COVID-19 infections and deaths consistent with applicable OSHA requirements. See Lake Effect’s blogs on this issue.
  • Establishing a process for employees to anonymously express concerns about COVID-19 hazards and ensuring that they are not discriminated or retaliated against in any way.
  • Making COVID-19 vaccines available to employees and requiring all employees to follow preventive practices, regardless of whether they are vaccinated.  See Lake Effect’s blog on this issue.

This is not an exhaustive list of OSHA’s new recommendations, and this new guidance contains detailed information about each aspect of an effective workplace COVID-19 prevention program. Employers should work closely with legal counsel to understand all requirements and implement a COVID-19 workplace prevention program consistent with this new OSHA guidance. Lake Effect is here to help you through this process and ensure that you are taking all possible steps to provide a workplace free from the recognized hazards created by the COVID-19.

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

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