Monday, March 23rd, Governor Whitmer announced an expansion of Executive Order 2020-21 that in order to suppress the spread of COVID-19, to prevent the state’s health care system from being overwhelmed, to allow time for the production of critical test kits, ventilators, and personal protective equipment, and to avoid needless deaths, it is reasonable and necessary to direct residents to remain at home or in their place of residence to the maximum extent feasible.

1. Engaging in an outdoor activity while observing proper social distancing
2. Obtaining health care
3. Obtaining necessary services and supplies including groceries
4. Caring for family members
5. Performing jobs if characterized as critical infrastructure workers by the U.S. Department of Homeland Security Cybersecurity and Infrastructure Security Agency (CISA) (Businesses will have the opportunity to designate their supply chain that is critical to performing CISA designated tasks.)
6. Businesses not considered “essential” by DHS will be able to designate employees required to maintain minimum basic operations including security, payroll, and providing for safe winding down of operations.

For purposes of this order, “critical infrastructure workers” are those workers described in the U.S. Cybersecurity and Infrastructure Security Agency guidance issued 3/19/20, including certain workers in each of the following sectors:

• Health care and public health

• Law enforcement, public safety, and first responders

• Food and agriculture

• Energy

• Water and wastewater

• Transportation and logistics

• Public works

• Communications and information technology, including news media

• Other community-based government operations and essential functions

• Critical manufacturing

• Hazardous materials

• Financial services

• Chemical supply chains and safety
• Defense industrial base

Additionally, “critical infrastructure workers” will include:

• Childcare workers (including workers at disaster relief childcare centers), but only to the extent necessary to serve the children or dependents of critical infrastructure workers as defined in this order. This category includes individuals (whether licensed or not) who have arranged to care for the children or dependents of critical infrastructure workers.

• Workers who perform critical labor union functions, including those who administer health and welfare funds and those who monitor the well-being and safety of union members who are critical infrastructure workers, provided that any administration or monitoring should be done by telephone or remotely where possible.

For many of our members, exception 6 covers those employees that need to be at work to maintain minimum business operations. Make sure that this work need is well documented. Also, discuss with customers to determine whether they need your product or can wait until the shelter at home order has ended.

For those other employees, if remote work is not possible or feasible, there may be other options from job share, furloughs, or temporary layoffs.  The state has provided the following guidance when making decisions on these options:

Work Share
If employers are financially distressed but hope to continue operations by cutting back hours, they are encouraged to use the Unemployment Insurance Agency’s Work Share program that allows employers to maintain employment levels and business operations during declines in regular business activity rather than laying off workers. More information about the program can be found at www.michigan.gov/workshare.

Temporary Leave vs. Termination
Due to the uncertainty regarding potential congressional action regarding whether and how furloughed workers will be able to access federal paid sick, family and medical leave resources, employers are strongly urged to place employees on  temporary leave and advise the worker that they expect to have work available within 120 days as opposed to termination. There is no additional cost to employers, employees remain eligible for UI benefits through the state, and employees may remain eligible for potential federal assistance.  

Steps for employers placing employees on temporary unpaid leave:

• Do not terminate the employee – specify a temporary/indefinite leave with return to work expected that is within 120 days.
• Do not create a contractual obligation to bring the employee back to work – Let the employee know that the situation is fluid and subject to change.
• Provide the employee with a formal Unemployment Compensation Notice. Employers will need to provide their Employer Account Number and Federal Identification Number.  
• Communicate to the employee about their rights. Under Governor Whitmer’s recent Executive Order, workers are placed on leave, or are unable to work because they are sick, quarantined, immunocompromised, or have an unanticipated family care responsibility, are eligible for unemployment insurance benefits.
• Ensure employers are provided information on how to obtain unemployment insurance benefits. 
• Get each employee’s up-to-date contact information.
• Let employees know if you will be putting updated information on the entity’s website or intranet, if applicable.
• Appoint a single, or limited number of individuals who will field questions, and communicate that information to employees.
• Keep a tally of all questions and answers.  Periodically share with employees.

The state is monitoring issues related to continued medical insurance coverage and will update accordingly.

Elimination of Certain Unemployment Costs to Employers
Under the governor’s order, an employer or employing unit must not be charged for unemployment benefits if their employees become unemployed because of an executive order requiring them to close or limit operations. 

In addition, the Michigan Economic Development Corporation’s (MEDC) call center stands ready to support businesses looking for assistance through other available state programs. For more information, visit MEDC’s website: www.michiganbusiness.org or call 888.522.0103. 

Information around this outbreak is changing rapidly. The latest information is available at Michigan.gov/Coronavirus and CDC.gov/Coronavirus. 

Please also refer to ASE’s Coronavirus Resources page for daily updates.  All upcoming ASE events related to Coronavirus can be found here.

ASE will continue to answer your questions. Our team is working hard to make sure we provide you with timely information that allows you to make the best decisions for your employees and your business. As always, please don’t hesitate to reach out if I or the ASE team can be of assistance.

Sincerely,

Mary E. Corrado
President & CEO
ASE