Managing Your Employees: What New and Small Businesses Need to Know

Employment attorneys Michael Neary and Nida Kanwal presented to new and small business owners on January 19 about managing their employees. You can watch a recording of the presentation here:

Micheal and Nida touched on several important topics, including:

1.  Hiring Process and Accompanying Risks
2.  Registering Employees With the State
3.  Immigration Compliance
4.  Documenting Employment Relationship: Offer Letters, Contracts, Equity Grants
5.  Best Practices for Employer Policies
6.  Wage and Hour Issues – Employee/Independent Contractors
7.  Protecting Your Intellectual Property and Trade Secrets
8.  Workplace Health and Safety – COVID-19
9.  Insurance
10.  Benefits

You can find a copy of their presentation here: https://www.lerchearly.com/events/managing-your-employees-what-new-and-small-businesses-need-to-know

For more information, contact Michael at mjneary@lerchearly.com or Nida at nkanwal@lerchearly.com.

Families First Coronavirus Response Act Tax Credit Extension in 2021

Nida KanwalNida Kanwal

The Families First Coronavirus Response Act (FFCRA) sunsetted on December 31, 2020, but some provisions remain active.

On Sunday, December 27, 2020, former President Donald Trump signed a bipartisan pandemic relief bill into law. Because the leave provisions of the FFCRA were not extended employers were no longer required to provide leave under the FFCRA in 2021.

However, as part of this relief package the tax credit for FFCRA leave, which reimburses employers for FFCRA leave taken by employees, was extended through March 31, 2021. Therefore employers who voluntarily choose to provide employees with FFCRA leave may do so until March 31, 2021 and receive tax credit for the leave. Of course, employers may instead choose to adopt their own policies to grant paid or unpaid leave for COVID-related purposes or simply allow employees to use their existing leave.

If employers do choose to provide FFCRA through March 31, 2021 they should be aware that employees are not granted FFCRA leave in addition to what they received in 2020. Thus if an employee has exhausted 80 hours of paid sick leave and 12 weeks of expanded family medical leave in 2020 they will not receive additional leave in 2021. Moreover, there are no changes to eligibility, purposes of leave, caps on usage, or documentation requirements.

Lastly, state or local laws may impose additional requirements for COVID-19 related leave and employers are advised to ensure that they act in compliance with any applicable laws.

For more information, contact Nida at 301-657-0744 or nkanwal@lerchearly.com.

COVID-19 in the Workplace – Employer Recording and Reporting Requirements

Employers may have obligations to record and report cases of COVID-19 in the workplace.

Nida KanwalNida Kanwal

Recording Requirement

The Occupational Safety and Health Administration’s (OSHA) revised enforcement memorandum provides that under OSHA’s recordkeeping requirements, COVID-19 is a recordable illness, and thus employers are responsible for recording cases of COVID-19, if:

  1. The case is a confirmed case of COVID-19;
  2. The case is work-related*; and
  3. The case involves one or more general recording criteria*.

*An illness is work-related if an event or exposure in the work environment either causes or contributes to a condition or significantly aggravates a pre-existing illness. This is presumed for illnesses or injuries resulting from events or exposures occurring in the work environment unless one of the narrow exceptions in federal regulations apply.

*The general recording criteria includes conditions in which the illness or injury results in either: death, absences from work, restricted work or transfer to another position, medical treatment (beyond first aid), or loss of consciousness. If one of these conditions is not met, an employer must also consider a case to meet the general recording criteria if it involves a significant illness or injury diagnosed by a physician or other licensed health care professional.

There are three forms for employers to fill out under the recording requirement—this includes an injury and illness incident report (Form 301), a log (Form 300), and a summary (Form 300A).

Notably, OSHA has indicated that it is exercising enforcement discretion regarding work-relatedness in the context of employee COVID-19 illness. OSHA acknowledges that because of the “nature of the disease and ubiquity of community spread, in many instances it remains difficult to determine whether a COVID illness is work-related, especially when an employee has experienced potential exposure both in and out of the workplace.” Therefore, recording a COVID-19 illness does not necessarily mean that the employer violated an OSHA standard.

Additionally, pursuant to existing regulations, employers with 10 or less employees as well as employers in low hazard industries do not have recording obligations; instead, they are only required to report work-related COVID-19 illnesses that result in a fatality or an employee’s in-patient hospitalization, amputation, or loss of an eye. A complete list of the industries which are exempt from OSHA’s recording requirements can be found here.

Importantly, as stated above, even if an employer is exempt from OSHA’s recording requirements it must still determine work-relatedness for purposes of OSHA’s reporting requirements for any employees who received in-patient hospitalization treatment due to COVID-19.

Additional Guidance

In determining whether an employer has complied with this obligation and made a reasonable good faith determination of work-relatedness, Compliance Safety and Health Officers (CSHO) should apply the following considerations:

  • The reasonableness of the investigation. Employers are not required to undertake extensive medical inquiries. It is typically sufficient for an employer to use the following steps when learning of an employee’s COVID-19 illness: (1) ask the employee how he believes he contracted COVID-19; (2) ask the employee about his activities in and out of work that may have led to the COVID-19 illness (while being mindful of employee privacy); and (3) review the his work environment for potential exposure (taking into consideration other employees who contracted the illness in that environment).
  • The evidence available. Evidence of work-relatedness includes what was reasonably available to the employer at the time it made its work-relatedness determination. If the employer later learns additional information, then that information should be considered to determine whether the employer made a reasonable work-relatedness determination.
  • The evidence that COVID-19 was contracted at work. Certain evidence makes it more or less likely that the illness work-relatedness. For example:
    • More likely work-related when several cases develop among workers who work closely together and there is no other explanation.
    • More likely work-related when the employee contracted the illness after close contact with a customer or colleague who had a confirmed case of COVID-19 and there is no other explanation.
    • More likely work-related when an employee’s position involves close contact with members of the general public in a locality with ongoing community transmission and there is no other explanation.
    • Not likely work-related if employee is the only one to contract the illness in his work area and his position does not involve close contact with the general public, regardless of the rate of community spread.
    • Not likely work-related if, outside of the workplace, the employee was exposed to COVID-19.
    • CSHOs are also advised to give consideration to evidence of causation from medical providers, public health authorities, or the employee himself.

After the inquiry, if an employer cannot determine whether it is more likely than not that an exposure in the workplace played a causal role in a case of COVID-19, then the employer does not need to record that illness.

Reporting Requirements

Once employers determine whether COVID cases are work-related, employers must report any incidents of in-patient hospitalization treatment (as opposed to only observation or testing) which occurred within 24 hours of the exposure at work. See OSHA’s FAQ.

Employers may report COVID-19 related fatalities or in-patient hospitalization by calling the nearest OSHA office, calling the OSHA 24-hour hotline at 1-800-321-OSHA (6742), or by online submission. There may also be additional reporting requirements under state or local law.

For more information, contact Nida at 301-657-0744 or nkanwal@lerchearly.com.

D.C. Enacts New Law Requiring Sexual Harassment Training by Employers of Tipped Employees (and Associated Reporting Requirements); Posting; and Notice to Employees of Employment Laws

The District of Columbia enacted important legislation which mandates sexual harassment training for tipped employees (and associated harassment reporting requirements for employers with tipped employees). The new law also mandates postings in the workplace as well as notice to employees of various employment laws.

Overview

By way of background, the District of Columbia, in 2018 enacted the Tipped Wage Worker Fairness Amendment Act (the “Act”). The Act contained a provision which required that D.C. provide funding before the new law would take effect. This summer, D.C. repealed the funding restriction. As a result, the Act took effect on October 30, 2020. Key components of the Act are summarized below.

Employers of Tipped Employees Must Conduct Workplace Harassment Training

The Act requires that the D.C. government provide a sexual harassment training course for employees of businesses that have tipped employees (or a certified list of providers who may provide such training).

New employees who were hired before the law became effective must be trained within two years of the effective date, either online or in person. New employees who are hired after the new law became effective must receive the training within 90 days of hire unless the employee participated in training within the prior two years. Business operators, owners, and managers must be trained every two years. Like employees, business operators and owners may participate in the training either online or in person. Managers, on the other hand, must be trained in person. The law imposes upon employers a requirement to submit a certificate of training to the D.C. Office of Human Rights within 30 days after each employee, manager, owner or operator has completed the training.

Reporting Requirements for Training of Tipped Employees

Importantly, the Act imposes upon employers of tipped employees certain reporting requirements as follows:

  • File with the D.C. Office of Human Rights a copy of the employer’s policy outlining how employees can report incidences of sexual harassment concerns to management and to the D.C. government.
  • Distribute the sexual harassment policy to employees and post the policy in a conspicuous place accessible to all employees in or about the employer’s premises.
  • Document incidences of sexual harassment reported to management, including whether the reported harassment was by an owner, operator, managerial employee, or non-managerial employee.
  • Report to the D.C. Office of Human Rights on a yearly basis the number of sexual harassment allegations reported to management, and the total number of reported harassers who were owners, operators, managerial employees or non-managerial employees.

Reporting Requirements for Postings and for Information Which Must Be Provided to Employees

Within 120 days of the effective date (October 30, 2020) of the Act, the Mayor’s Office is required to create a poster which summarizes the rights of D.C. employees under numerous D.C. employment statutes, and also create a website which clearly and precisely describes the rights of employees under each of these employment laws. Thereafter, employers are required to print copies of the information posted by the District of Columbia on its website and organize it into a single source, such as a binder. Employers must make a copy of the binder available at every location where the summary poster is exhibited. Furthermore, the law requires employers to update the binder at least monthly to make sure that information is accurate, up-to-date, and matches the information that is on the website of the Mayor’s Office. Significantly, the D.C. government can impose upon employers a fine of $100.00 for each day that an employer fails to comply with the binder and posting requirements.

Takeaways

The Act has important consequences for employers in the District of Columbia, which can be found in the rest of the article on our website: https://www.lerchearly.com/news/dc-enacts-new-law-requiring-sexual-harassment-training-by-employers-of-tipped-employees.

For more information, contact Marc at mrengel@lerchearly.com or Nida at nkanwal@lerchearly.com.

Maryland Law Bans Natural Hair Discrimination

The state joins Montgomery County and Virginia in adopting such legislation

Nida KanwalNida Kanwal

Effective October 1, 2020 Maryland’s anti-discrimination law prevents discrimination against persons based on their protective hairstyles and textures.

These types of laws, referred to as Creating a Respectful World for Natural Hair (CROWN) acts, are now being enacted in many states and localities. Montgomery County has had such a law in place since February of 2020, making it the first county in the country to ban hair discrimination. Virginia’s law went into effect on July 1, 2020. DC has not yet enacted such a law.

Maryland’s anti-discrimination law, Title 20 of the State Government Article of the Maryland Code, prevents various types of discrimination including discrimination in employment, places of public accommodation, leasing of commercial property, and housing. The definitional section of the title, Md. Code, State Gov’t § 20-101, has been amended to broaden the definition of “race” by including “traits associated with race including hair texture, afro hairstyles, and protective hairstyles.” Additionally, protective hairstyles is defined to include “braids, twists, and locks.”

Notably, the Senate version of the bill attempted to restrict the law by including language that an employer could establish and require an employee to “adhere to reasonable workplace appearance, grooming, and dress standards that are directly related to the nature of the employment of the employee.” However, this language was ultimately struck before the Act’s passage.

Employers should review any grooming and personal appearance standards or handbook policies in their workplace to ensure that they do not violate the new law.

For more information, contact Nida at 301-657-0744 or nkanwal@lerchearly.com.