Workplace Flexibility Benefits Everyone in the Era of Social Distancing  

workplace flexibilityA new world of workplace flexibility? Not quite gone are the days of a strict 8-5 work day, but many businesses are seeing the benefits of adapting to the times, and that means retooling expectations for employees in a number of ways. Accommodations can benefit both the employee and the employer, and in some situations, may be essential under state and federal law. In any situation, employers have a responsibility to provide a safe work environment for employees. With real concerns about COVID-19 plaguing Americans, it is important for every company to rethink the way they do business. The failure to do so could result in serious consequences, one of which is an employee lawsuit.

 

The Americans With Disabilities Act

 

The Americans with Disabilities Act (ADA) requires employers to make reasonable accommodations for employees with a qualifying physical or mental impairment that limits their life activities in some way. That being said, the disabled individual must be able to perform what are considered to be essential functions of the job, or those that are basic to the job itself. The ADA regulations apply to any employer with 15 or more workers. The types of accommodations vary, but one that is consistently called out as reasonable is allowing an employee to adjust the work schedule. The truth is, employers often benefit from such accommodations every bit as much as workers do because they get high-quality work from well-qualified employees.

 

Examples of Workplace Flexibility

 

The fact is,flexible work expectation often benefit all parties, regardless of disability.  Particularly as the nation struggles to respond to a pandemic, a number of flexible workplace arrangements may make sense: 

  • Telecommuting: Some positions may lend themselves to telecommuting, allowing employees to work and conference via computer. Potential benefits include the obvious reduction in travel and installation of workplace flexibility accommodations for those with disabilities. Other employees may also enjoy less commuting, less exposure to potentially contagious individuals, and more flexibility generally.
  • Alternate Scheduling: In order to reduce traffic in the workplace, it may be possible to alternate shifts, keeping fewer employees in an area at a time. In the era of social distancing, this may be a key strategy to put more space between workers. It may also benefit employees who prefer alternate shifts in order to accommodate child care or who are dealing with other issues.

Discrete Measures Designed to Protect

 

For service-oriented industries, social distancing gets a little more complicated. Some tips that might be utilized include: 

  • No-visitor policies;
  • Staggering shift work;
  • Pooling workplace tasks to reduce congestion;
  • Adaptations to workplace design;
  • Streamlining procedures.

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Unpaid Leave can Lead to a Lawsuit – Coronavirus Update

unpaid leaveUnpaid leave due to the COVID-19 pandemic is being forced on more Americans than at any other time in our country’s history. As of April 1 of this year, Public Law 116-127, otherwise known as the Families First Coronavirus Response Act, gives workers the right to sue their employers in the event proper leave is not provided. Businesses employing between 50-500 workers must comply with the new law.

Consider These Unpaid Leave Circumstances

Many individuals across California and the United States are not showing up for work for reasons beyond their control:

  • There is a state or local quarantine;
  • They have received notification that they should self-quarantine due to a possible exposure or symptoms of the disease;
  • They have experienced disease symptoms and are seeking medical testing or treatment.

Under these circumstances, workers are entitled to the greater of these three wages:

  • Your regular pay;
  • The federal minimum wage;
  • The state minimum wage.

You can top out at as much as $511 per day during the course of your sick leave.

Furthermore, you may be entitled to two thirds of your normal pay — up to $200 daily — if you are unable to work for the following reasons:

  • You are caring for an individual who must be isolated or quarantined;
  • You are caring for a child who is unable to attend schools due to local closures;
  • You are in another situation similar to these that prevents you from going to work.

How it Works

Sick leave and expanded family and medical leave is calculated as follows:

Part time workers are entitled to the average earnings in a two-week time frame. The average going back six months may be used if an employee’s schedule varies significantly from week to week. These workers are entitled to paid sick leave for two weeks, and may extend the payment period for as many as 10 more weeks under the expanded family and medical leave provisions. In the event employees generally put in overtime hours, those too must be compensated under the Emergency Family and Medical Leave Expansion Act. Under the Emergency Paid Sick Leave Act, however, only hours up to 80 in a two-week period are to be paid. [Read more…]

Coronavirus Lockdown Orders Impacts Businesses: Banks Offer Relief

coronavirus lockdown ordersCoronavirus lockdown orders have permeated the country creating dire consequences for employers and employees. Coronavirus has led to social distancing measures to protect communities, but the collateral damage on businesses, particularly small businesses, is proving to be devastating. Enter the banking industry. 

Coronavirus Lockdown Orders – Essential vs. Nonessential Businesses

California’s Governor Newsom issued executive coronavirus lockdown orders in March requiring residents to stay home unless they were needed to maintain “essential infrastructure.” That means a number of businesses have been shuttered, and employees left wondering how they will pay their bills. The businesses considered essential, to date, include grocery stores, pharmacies, banks, laundromats, law enforcement, fire and EMT, gas stations, and, of course, medical services. Some manufacturers and distributors, particularly those involved with the medical field, are also remaining in business. Likewise, employees who assist vulnerable populations in areas such as food and shelter operations may continue to work, as well as those dealing with child abuse and elderly care. Public works and communications employees are still going to work, and electricians, plumbers, and sanitation workers continue to support the community. Additionally, veterinary services are still available to the public. Finally, those working in mortuary, funeral, and cemetery services are deemed essential.  That leaves entertainment venues, salons, fitness centers and more with no way to make money. Those in transportation, and hospitality industries have limited employment. Indoor dining is prohibited, so restaurants can earn a marginal income through take-out and delivery orders.

State Options for Your Business 

The governor has worked with both national banks and state-chartered ones, along with credit unions, to create a grace period on loan payments in the wake of the COVID-19 outbreak prompted coronavirus lockdown orders. Additional programs centered around payment deferrals, fee waivers, interest rate adjustments, and various loan modifications are available to assist business owners who have been negatively impacted by the pandemic.

Federal Assistance

The federal government has enacted legislation to address financial assistance for small businesses that have been hit by the virus. Organizations with 500 or less on the payroll may obtain loans from the Small Business Administration to help with business expenditures. This may include the following:

  • Payroll and compensation;
  • Healthcare costs;
  • Mortgage and other interest obligations;
  • Rent and utilities.

These loans are provided with no collateral or personal guarantees, and costs associated with employee payroll will be forgiven up to $100,000. The remainder of the loan will carry no more than 4% interest. [Read more…]

Coronavirus Layoffs

coronavirus layoffsCoronavirus layoffs have hit employees hard. Unfortunately, things look to get worse economically before we turn the corner on this crisis. When employers consider cost-cutting measures, one of the first things they look at is layoffs.  Before making a hard and fast decision on the topic of coronavirus layoffs, there are some important issues employers need to consider. 

Layoff Issues to Consider

First of all, employers need to take a look at how serious the fiscal hit to business is, and take an educated guess regarding how long the financial crisis will last. One key thing employers need to weigh is the difficulties they may face in replacing laid off workers when things turn around and business picks up. This becomes more of a challenge when the skills of workers are more refined and specialized. 

Who Has Been Hit?

Among the hardest hit by coronavirus layoffs are industries whose existence rely on people interacting. Clearly, social distancing gets in the way of those in the hospitality industry. That includes hotels, travel, restaurants, and entertainment, among others, and their bottom lines have been dramatically impacted since the advent of coronavirus. In this situation, the majority of employees do not have unique skill sets or specialized training. Although ramping up the workforce will take some effort when the time is right, finding qualified workers, even in a tight market, will likely not be a significant challenge. Layoffs in these fields, therefore, may not result in critical deficiencies when the economy turns around.

Businesses focused on manufacturing or advertising are generally impacted by any recession, as are those involved in freight and delivery. The current coronavirus layoffs crisis is no exception. Although eliminating these positions will save a company money, recognizing that these are skilled workers means that replacing them in an upturn will put you in competition with others for the best workers. It may be better for employers to look at simply reducing workers’ hours and letting workers’ compensation supplement their income during this downturn.

Alternatives to Coronavirus Layoffs

When tough times hit any business, employers are wise to communicate clearly the concerns of the company and keep employees in the loop as plans are being made. Having clear goals and expressing them openly will benefit everyone involved. In order to avoid layoffs, there are strategies that might be considered to get the business through the rough patch:

  • Sharing the pain: If everyone in the company cuts back, from the janitorial staff to the CEO, it may be possible to limp along for a significant period of time. That way the business can stay intact, and be 100% ready to go when things turn around.
  • Crowdsource ideas: If you open the discussion to workers, a variety of money-saving solutions may evolve as employees buy-in to the notion of saving the business.

[Read more…]

Coronavirus Pandemic Shuts Down Commerce

coronavirus pandemicIf you are a worker who is concerned about making ends meet in the era of the coronavirus pandemic, you are not alone. Nearly 7 million Californians do not have enough money on hand to pay for basic necessities. So, when income is cut off, it puts people in dire straits. 

The Coronavirus Pandemic Cripples the Economy

In just a matter or weeks, once thriving businesses have had to shutter, and entire sectors have closed down. Workers of all stripes are wondering how they will be able to afford food and other necessities, and where the money for their next rent payment will be coming from. And indicators like colossal drops in the stock market, federal reserve municipal bond purchases, and a drop in Treasury yields tell us the financial decline is going to stick around for a while.  Estimates are that jobless claims will skyrocket to 2 million in the coming days and weeks, putting many across the nation in difficult situations.

Who is Primarily at Risk?

Hourly employees generally are at greatest risk of layoffs and losing their jobs, particularly those in the service industry. We have seen employees in hotels and restaurants hit hard by the coronavirus pandemic. Those in manufacturing and retail are finding themselves in the same boat. Often, these workers do not have paid leave or other benefits to help.

Government Pandemic Plan 

The federal government has passed a coronavirus pandemic prompted plan to send Americans cash in the coming weeks. The stimulus package included payments of up to $1,200 to US taxpayers but not everyone will get the entire amount and others, not at all. Federally funded emergency leave has been passed and here in California, the governor also extended the eligibility period for Medi-Cal, welfare, and food stamps by three months.  

For families who have mortgages that are federally backed, evictions and foreclosures have been suspended until May. Governor Newsom also issued an executive order to allow local governments to ban commercial and residential evictions. 

Voluntary Assistance

California’s largest power utilities have voluntarily agreed to protect customers from phone, water, and power shutoffs. Comcast is giving new customers 60 days of free Internet.

Unemployment 

For workers who have had hours cut, unemployment benefits may be available.  Those who have contracted the coronavirus may qualify for disability benefits.

Food

The federal coronavirus pandemic relief is designed to assist mothers and pregnant women, as well as seniors, with funds for groceries and/or home delivered meals. Previously planned cuts to food stamp programs have been halted by a federal judge, allowing able-bodied but unemployed individuals to continue to collect benefits.  In the works during the coronavirus pandemic are plans for bolstered food banks, as well. [Read more…]

Layoff vs Furlough – Employer Guidelines in a COVID-19 World

layoffLayoff or Furlough? As California enters this unprecedented time with Mandatory “Shelter In Place” orders throughout California, many employers are facing the imminent decision to reduce workforce while we all face uncertainty over when normal business with resume.  Many employers are unable to assign work to their employees at home and must consider greatly reducing their current workforce as soon as possible.

Employers reducing scheduling for non-exempt hourly employees with a reduced work schedule or not at all generally do not have to worry about liability for the reduction.  However, a common question is what to do with employees and whether employees should be laid off or furloughed during this time.

Layoff vs. Furlough

A layoff can be temporary or permanent.  It is recommended that layoffs occurring during this recent pandemic are temporary due to the unknown duration of the reduction of workforce.  When laying off an employee, the employer must follow all California Labor Laws and the Worker Adjustment Retraining and Notification Act (WARN) with no expectation the employee will return to work in the future.

A layoff is a separation of the employment relationship and the rehire process must occur for the employee to rejoin the workforce.  All benefits are terminated at the end of the term of the separation and the employee will no longer be employed by the employer.

A furlough occurs when the employer is reducing the days or weeks an employee may perform work.  An employer will suspend the work of most or all employees and send them home without pay.  This is a mandatory suspension from work that can last briefly or as long as the employer desires.  It typically occurs when the employer wants to retain staff that they cannot afford.  Furloughed employees also retain their benefits with the Company and retain their employment relationship with the employer.

Employees are generally furloughed when there is a reduction in workforce but the reduction is temporary and employees are expected to return to work on a certain date or a specific condition.

If an employee performs any work for the employer during the furlough, an exempt employee is entitled to an entire week’s pay and a non-exempt employee is entitled to payment for any time worked.  Employee work includes checking e-mails, making phone calls, or performing any task for the employer.  A “workweek” in California is defined as 7 consecutive days, starting with the same calendar day each week.  The workweek can begin on any day and any hour.  However, if an employer has no properly established workweek, the Division of Labor Standards Enforcement (DSLE) assumes the workweek is from Sunday through Saturday.

It is highly recommended that employers revoke all access for employees during the furlough and send notices of the change in employment status outlining the employer’s furlough procedures and policies.

The main difference between a furlough or laying off employees is that furloughed employees can come and go fairly easily but layoffs require the employer comply with all relevant Labor Laws, the federal and California WARN Act, and possibly conduct the rehiring process to reinstate the employees.  Furloughed employees also retain their benefits and employment status with the employer while a lay off is the end of the employment relationship.

Work Adjustment Retraining Notification (WARN)

When an employer decides to layoff its workforce, it is important to comply with the Worker Adjustment Retraining Notification Act (WARN) both federally and within California.

Federal WARN

Compliance with Federal WARN laws is triggered when there are temporary layoffs longer than 6 months and the layoffs include 50+ employees in a 90 day period.  Notice may be shortened if circumstances were not reasonably anticipated 60 days before the employee was laid off.  However, actual notice must be given is a much advanced time as possible.

California WARN

The similar California WARN laws provides no exception for the 60 day notice rule and it has not yet been determined if COVID-19 would be an exception to the notice requirements.  However, on March 17, 2020, Governor Newsom signed Executive Order N-31-20 relieving employers of some on these requirements.

Executive Order N-31-20 explains “the need to prevent or mitigate the spread of COVID-19” has caused employers to “close rapidly without providing their employees the advanced notice required under California Law.  Therefore, Labor Code sections 1401(a), 1402, and 1403 are suspended for the employer at this time.

This order will be in effect for the duration of the COVID-19 “emergency” and provides notice still must be given but amends the 60 day requirement to “as soon as practicable.”  The following is required by all California employers engaging in layoffs during this time:

  1. The employer must still give written notice to the employee under the WARN Act;
  2. The employer must give as much notice as practicable including a brief statement explaining why the notice is reduced;
  3. The notice must explain that COVID-19 was not reasonably foreseeable that the time notice would have been required; and
  4. The notice must include “If you have lots your job or been temporarily laid off, you may be eligible for Unemployment Insurance (UI). More information on UI and other resources available for employees is available at labor.ca.gov/coronavirus2019

It is anticipated further guidance will be given to employers in the upcoming week by the Employment Development Department (EDD).

Other Resources

While employers are faced with difficult decisions there are resources available for both employers and employees.

All employers have the option the offer paid Sick Leave and use of Paid Time Off to their employees during any temporary closure but cannot require the employee use Sick Time.

All employees with changes in their current employment status should check the EDD regarding possible unemployment compensation.  Employers should advise their employees that more information is available at labor.ca.gov/coronavirus2019 for possible resources during this emergency.

Employers may also avoid potential layoffs by participating in Unemployment Insurance Work Sharing Program if the employer will reduce wages and hours no more than 60%.  This allows for a quick adjustment when the business improves.

If your business is closing or you will be laying off your entire staff, you may be able to utilize the EDD’s Rapid Response Services.

If you are an “Essential Business” with an exception to the Shelter In Place Order and will be staying open during this time, you may consider possible waivers of liability and informed consent.  A list of “Essential Business” can be found here.
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Disclaimer

The information on this website should not be considered to be legal advice, nor construed to be the formation of any manner of attorney client relationship. Prior to taking any form of legal action, please consult with an attorney experienced in the appropriate area of law germane to your situation. Case results and testimonials presented on www.californialaborandemploymentlaw.net or any of its related websites are germane to the facts present for each individual case and is not a promise of similar outcomes for any other cases. This website is not intended to solicit clients for matters outside of the State of California.