Employment Law Updates: March 2022

Employment Law Updates: March 2022

Four Federal and six State Law Updates have been issued this month.  Our HR Advisors are versed and ready to answer your toughest HR questions to help your company through working remotely, coming back to work and all year long.

Federal Labor Law Updates:

1

Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act

On March 3, 2022, President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (HR 4445). The act amends the Federal Arbitration Act by allowing employees subject to pre-dispute mandatory arbitration agreements to pursue their claims related to sexual assault or sexual harassment in court. The law also allows workers to choose how to pursue their cases after sexual assault or harassment has occurred.

According to the White House press briefing, “[t]his law will affect the more than 60 million workers who are subject to mandatory arbitration clauses in the workplace, often without realizing it until they come forward with a claim against their employer. President Biden has long spoken against forced arbitration clauses in employment contracts, and today marks an important milestone in empowering survivors of sexual assault and sexual harassment and protecting employee rights.”

The White House also live broadcasted the signing and the Chair of the U.S. Equal Employment Opportunity Commission (EEOC) also released a statement about the act.

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2

HSA Telehealth Relief Extended Under Appropriations Act

On March 15, 2022, President Biden signed the Consolidated Appropriations Act, 2022 (HR 2471)(CAA 2022) with a provision that temporarily allows high deductible health plans (HDHP) to cover telemedicine services without a deductible from April 1, 2022, through December 31, 2022, and without health savings account (HSA) eligibility disruption. This is essentially an extension of the CARES Act provisions that expired on December 31, 2021, with a gap for calendar year plans from January 2022 through March 2022 when the standard deductible applies.

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3

New DOL Employer Resources to Prevent Retaliation

On March 10, 2022, the U.S. Department of Labor published the following new resources to assist in preventing retaliation against employees who assert their workplace rights or cooperate with Wage and Hour Division (WHD) investigations:
Employers cannot retaliate against a worker for exercising their rights. Retaliation happens when an employer (through a manager, supervisor, administrator, or directly) fires an employee or takes any other type of adverse action against them for engaging in protected activity. An adverse action is an action that would discourage a reasonable employee from bringing up their concerns about a possible violation of their rights or discourage them from taking part in other related protected activity. Retaliation can have a negative impact on overall employee morale.

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4

Updated EEOC Guidance on Religious Accommodations and Vaccines

On March 1, 2022, the federal Equal Employment Opportunity Commission (EEOC) updated section L of its COVID-19 guidance about vaccinations and Title VII religious objections to COVID-19 vaccine requirements.

The EEOC enforces Title VII of the Civil Rights Act of 1964 (Title VII), which prohibits employment discrimination based on religion. This includes a right for job applicants and employees to request an exception, called a religious or reasonable accommodation, from an employer requirement that conflicts with their sincerely held religious beliefs, practices, or observances. If an employer shows that it cannot reasonably accommodate an employee’s religious beliefs, practices, or observances without undue hardship on its operations, then they are not required to grant the accommodation. Read more about Section 12: Religious Discrimination and EEOC Guidelines on Discrimination Because of Religion.

Although other laws, such as the Religious Freedom Restoration Act, also may protect religious freedom in some circumstances, the EEOC’s guidance only describes employment rights and obligations under Title VII and specifically addresses:

  • That employees with a religious objection to getting the COVID-19 vaccine must tell their employer about it—when requesting an accommodation from getting it—and how.
  • That generally, employers should accept an employee’s assertion of their religious at face value but could make a factual inquiry for additional supporting information if it questions it.
  • How an employer shows that it would be an “undue hardship” to accommodate an employee’s request for religious accommodation.
  • When an employer grants some employees a religious accommodation from a COVID- 19 vaccination requirement because of their sincerely held religious beliefs, practices, or observances, it is not required to grant all such requests.
  • When there is more than one reasonable accommodation that would effectively resolve the conflict between the vaccination requirement and the employee’s sincerely held belief, etc., that an employer may choose which accommodation to offer.
  • The obligation to provide religious accommodations absent undue hardship and that it is a continuing obligation that allows for changing circumstances.

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State Specific Labor Law Updates:

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Employment Law Updates: April 2021

Employment Law Updates: April 2021

Three Federal, along with D.C., and ten State Law Updates have been issued this month.  Our HR Advisors are versed and ready to answer your toughest HR questions to help your company through working remotely, coming back to work and all year long.

Federal Labor Law Updates for April 2021

1

Employer Tax Credits, American Rescue Plan, and Paid Leave for Employees to Get Vaccinated

On April 21, 2021, the Internal Revenue Service (IRS) released a fact sheet about the American Rescue Plan Act of 2021 (ARP), employers that are eligible for tax credits for the paid leave granted to employees for COVID-19 vaccinations, and how to claim them. The ARP allows small and midsize employers to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations.

The ARP tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through September 30, 2021.

Tax Credits and Paid Sick and Family Leave

Eligible employers are entitled to tax credits for wages paid for leave taken by employees who are not able to work or telework due to reasons related to COVID-19, including leave taken to receive COVID–19 vaccinations or to recover from any injury, disability, illness or condition related to the vaccinations. These tax credits are available for wages paid for leave from April 1, 2021, through September 30, 2021.

Tax Credit Amount and Calculation

The paid leave credits under the ARP are tax credits against the employer’s share of the Medicare tax. The tax credits are refundable, which means that the employer is entitled to payment of the full amount of the credits if it exceeds the employer’s share of the Medicare tax.

The tax credit for paid sick leave wages is equal to the sick leave wages paid for COVID-19 related reasons for up to two weeks (80 hours), limited to $511 per day and $5,110 in the aggregate, at 100 percent of the employee’s regular rate of pay.  The tax credit for paid family leave wages is equal to the family leave wages paid for up to twelve weeks, limited to $200 per day and $12,000 in the aggregate, at 2/3rds of the employee’s regular rate of pay.

The amount of these tax credits is increased by allocable health plan expenses and contributions for certain collectively bargained benefits, as well as the employer’s share of social security and Medicare taxes paid on the wages (up to the respective daily and total caps).

Claiming the Credit

Eligible employers may claim tax credits for sick and family leave paid to employees, including leave taken to receive or recover from COVID-19 vaccinations, for leave from April 1, 2021, through September 30, 2021.

Eligible employers report their total paid sick and family leave wages (plus the eligible health plan expenses and collectively bargained contributions and the eligible employer’s share of social security and Medicare taxes on the paid leave wages) for each quarter on their federal employment tax return, usually Form 941, Employer’s Quarterly Federal Tax Return  Form 941 is used by most employers to report income tax and social security and Medicare taxes withheld from employee wages, as well as the employer’s own share of social security and Medicare taxes.

In anticipation of claiming the credits on the Form 941, eligible employers can keep the federal employment taxes that they otherwise would have deposited, including federal income tax withheld from employees, the employees’ share of social security and Medicare taxes and the eligible employer’s share of social security and Medicare taxes with respect to all employees up to the amount of credit for which they are eligible. The Form 941 instructions explain how to reflect the reduced liabilities for the quarter related to the deposit schedule.

If an eligible employer does not have enough federal employment taxes set aside for deposit to cover amounts provided as paid sick and family leave wages (plus the eligible health plan expenses and collectively bargained contributions and the eligible employer’s share of social security and Medicare taxes on the paid leave wages), the eligible employer may request an advance of the credits by filing Form 7200, Advance Payment of Employer Credits Due to COVID-19. The eligible employer will account for the amounts received as an advance when it files its Form 941, Employer’s Quarterly Federal Tax Return, for the relevant quarter.

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2

EBISA Releases Cybersecurity Guidance

On April 14, 2021, the U.S. Department of Labor (DOL) announced the following new guidance for plan sponsors, plan fiduciaries, recordkeepers and plan participants on best practices for maintaining cybersecurity:


This is the first time the DOL’s Employee Benefits Security Administration has issued cybersecurity guidance and it is designed for use by plan sponsors and fiduciaries regulated by the Employee Retirement Income Security Act, plan participants, and beneficiaries.

3

COBRA Premium Assistance FAQs and the American Rescue Plan Act of 2021

On April 7, 2021, the U.S. Department of Labor’s (DOL), Employee Benefits Security Administration (EBSA) released frequently asked questions (FAQs) addressing how certain provisions of the American Rescue Plan Act of 2021 (ARP) apply to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The FAQs provide answers to general questions, inquiries about premiums, notices, and more.

More information is provided on the COBRA Premium Subsidy website and EBSA also released the following model notices:


COBRA continuation coverage provides certain group health plan continuation coverage rights for participants and beneficiaries covered by a group health plan. In general, under COBRA, an individual who was covered by a group health plan on the day before the occurrence of a qualifying event (such as getting fired or a reduction in hours that causes loss of coverage under the plan) may be able to elect COBRA continuation coverage when that qualifying event occurs. These individuals are referred to as qualified beneficiaries. Under COBRA, group health plans must provide covered employees and their families with certain notices explaining their COBRA rights.

Section 9501 of the ARP provides for COBRA premium assistance to help assistance eligible individuals continue their health benefits. The premium assistance is also available for continuation coverage under certain state laws. Assistance eligible individuals are not required to pay their COBRA continuation coverage premiums. The premium assistance applies to periods of health coverage on or after April 1, 2021 through September 30, 2021. An employer or plan to whom COBRA premiums are payable is entitled to a tax credit for the amount of the premium assistance.

The DOL also provides more information about the COBRA Premium Subsidy on its website.

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Individual state labor laws

State Specific Labor Law Updates:

Compliance can weigh down even the most experienced professionals. Our HR Advisors, one click compliance Handbook, Compliance Database, HR Tools and Employee Training are ready to help navigate HR all year long. Everything included with your AllMyHR Solutions

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Previous Labor Laws & Information