Dear Valued Client,

At Duffy Kruspodin, LLP, we strive toward excellence in providing necessary client services.  To continue in this effort and in response to the Covid-19 pandemic, we have gathered helpful information below for employers regarding employment resources and labor laws updates.  

WHAT EMPLOYERS NEED TO KNOW

CALIFORNIA WAGE REPLACEMENT RESOURCES

DISABILITY INSURANCE – eligible if your employee is infected by Covid-19

PAID FAMILY LEAVE – eligible if your employee is caring for an immediate family member that is infected by Covid-19.

UNEMPLOYMENT INSURANCE

Who is eligible?

• An individual of a company/organization that has temporarily ceased operations due to Covid-19, preventing employees from coming to work.
• An individual who is quarantined with the expectation of returning to work after the quarantine is over.
• An individual who leaves employment due to a risk of exposure or infection or to care for a family member.

New Federal expansions of the benefit– The items below are addressed in new Federal Legislation passed on 3/25/20 but California has not released guidance on how this will be implemented.

• Additional groups, including self-employed, have been added to the eligibility list.
• Benefit eligibility is extended an additional 13 weeks beyond what is currently provided in each state.
• An additional four months of $600 weekly payments will be provided on top of the usual weekly unemployment payments.

Information regarding Federal update to Unemployment Benefits: https://www.dol.gov/general/topic/unemployment-insurance

Helpful Links: https://www.edd.ca.gov/about_edd/coronavirus-2019.htm

https://www.edd.ca.gov/about_edd/coronavirus-2019/faqs.htm

EMERGENCY PAID SICK LEAVE ACT (Effective 4/1/20)

This Act provides employees with 80 hours of additional paid sick leave to be paid by the employer on top of what you are currently offering in compliance with previous state and federal law.

Who must provide coverage? Employers with 1-499 employees.

Who is eligible?

1. Employees subject to a federal, state or local quarantine or isolation order related to COVID-19; guidance does not indicate if this includes self-isolation, self-quarantine or quarantine in response to the California Stay at Home Order.  Further details should be released soon.
2. Employees advised by a health care provider to self-quarantine due to COVID-19 concerns;
3. Employees who have experience COVID-19 symptoms and are seeking medical diagnosis;
4. Employees who care for an individual subject to a federal, state or local quarantine or isolation order or advised by a health care provider to self-quarantine due to COVID-19 concerns; guidance does not indicate if this includes self-isolation, self-quarantine or quarantine in response to the California Stay at Home Order.  Further details should be released soon.
5. Employees who care for a child if the child’s school or place of care is closed or the child’s care provider is unavailable due to public health emergency;
6. Employees who experience any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

How should it be paid?

• If an employee qualifies for reasons 1-3, they are to be paid at their regular rate, but that pay cannot exceed $511 per day and $5,110 in aggregate.
• If an employee qualifies for reasons 4-6, they are to be paid at a rate of 2/3 their regular pay, but that pay cannot exceed $200 per day and $2,000 in aggregate.

What are the Tax Credits?

• Tax Credits can be taken quarterly for employers required to pay this sick leave.
• These credits are currently reported to be dollar for dollar against Social Security Taxes.
• Employers are entitled for credits based on wages paid up to $511 per day or $200 per day dependent on the reason for the leave.
• Additional information on how to apply for these credits has not yet been released.
• There is no indication at this time that there will be retroactivity for any wages paid prior to 4/2/20.

Additional Requirements?  Notice found here should be posted in a conspicuous place where all employees have access or emailed to all employees working remotely.

EMERGENCY FAMILY AND MEDICAL LEAVE EXPANSION (Effective 4/1/20)

This expands the eligibility guidelines for the Family and Medical Leave Act allowing 12 weeks of job protected leave of absence for qualified employees.

Who must provide coverage? Employers with 1-499 employees.

Who is qualified? Employees who have been employed by the company for 30 days or more.

Who is eligible?  An employee who is unable to work (or telework/remote work) due to a need to care for the employee’s child under 18 years of age if the school or place of care has been closed or the child care provider is unavailable due to a public health emergency, meaning an emergency related to COVID-19.

What does the leave consist of?

• 12 weeks of job protected leave of absence
• The first 10 days are unpaid followed by partial pay for the remainder of the leave.
• The employer is required to offer the employee the same job or a substantially similar job upon their return from leave.

What are the paid leave requirements?

• Full-time employees – following 10 days unpaid, the employer is required to pay at a rate of 2/3 of the employee’s regular rate for normally scheduled hours.
• Part-time employees – following 10 days unpaid, the employer is required to pay at a rate of 2/3 of the employee’s regular rate based on the average number of hours worked over the last six-month period.
• This pay is capped at $200 per day and $10,000 in aggregate, per individual.

What are the Tax Credits?

• Tax Credits can be taken quarterly for employers required to pay employees for this leave.
• These credits are currently reported to be dollar for dollar against Social Security Taxes.
• Employers are entitled to credits for wages paid up to $200 per day and $10,000 in aggregate per individual.
• Additional information on how to apply for these credits has not yet been released.
• There is no indication at this time that there will be retroactivity for any wages paid prior to 4/2/20.

Additional Requirements?  Notice found here should be posted in a conspicuous place where all employees have access or emailed to all employees working remotely.

This information does not constitute legal advice, is not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matters you or your organization may have.

Additional Information: https://capitolinsider.calchamber.com/2020/03/families-first-coronavirus-response-act-passes/

https://advocacy.calchamber.com/2020/03/21/covid-19-federal-paid-leaves-explained/

Real time updates for California employers: https://advocacy.calchamber.com/coronavirus-covid-19/

Sincerely,

Duffy Kruspodin, LLP