Quick Hits - June 3, 2020 - American Society of Employers - ASE Staff

Quick Hits - June 3, 2020

Quick HitsMichigan launches new portal for PPE:  The Michigan Economic Development has launched a free Pure Michigan Business Connect COVID-19 Procurement Platform.  The online service is available to employees in need of PPE gear as well as PPE suppliers. The online portal can be accessed at www.michiganbusiness.org/ppe and is open to companies of all sizes and industries and is available for all scales of PPE demand.  Source: Michigan.gov

CDC issues new guidance for businesses:  The Center for Disease Control released a new guidance providing a checklist for employers on what they need to do to ensure their office spaces are physically prepared for workers to return and how they should approach interactions with employees as they proceed beyond the pandemic.  Employers should follow this guidance and reference it in their Pandemic Plan.

OSHA issues updated Interim Enforcement Response Plan: The federal Occupational Safety and Health Administration (OSHA) has adopted an Updated Interim Enforcement Response Plan for Coronavirus Disease (ERP). As states begin reopening their economies, the revised ERP will “ensure employers are taking action to protect their employees.” According to the ERP, OSHA will continue to prioritize COVID-19 cases. The agency acknowledged that it will continue to target healthcare employers, who historically have not been a primary target of OSHA enforcement. During an inspection, the ERP instructs compliance officers to examine whether employees “who are expected to perform very high and high risk exposure tasks are using respirators (i.e., N95 or better).” The ERP states in bold text that “appropriate respiratory protection is required for all healthcare personnel providing direct care for patients with suspected or confirmed cases of COVID-19.” Area Directors will continue to evaluate potential on-site inspections for COVID risks to OSHA personnel and will not send compliance officers where they perceive a hazard. Enforcement against employers will be largely through the General Duty Clause. The ERP provides a sample citation (Attachment 4), again focused on healthcare employment and precautions during the treatment of COVID-19 patients.  Source:  Seyfarth Shaw 5/28/20

OSHA updates reporting requirements for COVID-19: On May 19, 2020, the Department of Labor’s Occupational Safety and Health Administration (“OSHA”) issued a memorandum regarding employers’ obligation to record cases of COVID-19 in the workplace. On May 26, 2020, OSHA’s updated guidance will go into effect.  Under the updated guidance, all employers subject to OSHA recordkeeping requirements will now have to determine whether employees’ COVID-19 cases are work-related and, if so, record such cases on the employer’s OSHA Form 300 log. Specifically, the updated guidance provides that all employers that are not exempted from OSHA’s recordkeeping requirements must resume recording cases of COVID-19 where:

1.      The case is a confirmed case of COVID-19 as defined by the Centers for Disease Control and Prevention (“CDC”);

2.      The case is work-related; and

3.      The case involves one or more of the general recording criteria set forth in 29 C.F.R. § 1904.7.

Notably, the guidance does not alter the exemption from OSHA recordkeeping requirements for employers with fewer than 10 employees or those in certain low-risk industries, such as the legal services, accounting, educational, or financial industries. A complete list of exempt industries can be found here.  Source:  Proskauer 5/20/20

COVID-19 accelerating employers’ changes in the workplace:  U.S. companies are making a series of workplace adjustments as they prepare to operate in a post-COVID-19 environment, according to a new survey of employers by Willis Towers Watson. The survey of 681 employers, conducted during the week of May 11, found nearly three in four respondents (74%) made adjustments to work to reflect the new post-pandemic protocol. Some examples include installing touchless payment systems, offering services via video rather than in person, creating more space on assembly lines or in distribution centers, and changing work schedules to limit employee contact. Almost three in 10 respondents (29%) moved work to different jobs while nearly a quarter (23%) made changes to reflect work that was being done in-house versus by third parties.  Moreover, employers expect that the percentage of their workforce who are full-time employees working remotely after the pandemic will be three times as many compared with last year.   Employers report just over half (53%) of their workforce are full-time employees currently working remotely or from home. While that is expected to drop to 22% after the pandemic passes, it would still be up significantly from last year's 7%. Source:  CCH 5/26/20

Employers help furloughed workers with healthcare costs:  According to a recent report from the International Foundation of Employee Benefit Plans (IFEBP) found that 31% have temporarily furloughed workers, 29% have reduced worker hours, and 21% have laid off workers. Through all this, employers are handling health care benefits for furloughed employees in a variety of ways:  7% are providing employee health care coverage through COBRA, with the worker paying the full cost; 38% are continuing health care coverage for the entire period, with the cost shared as usual between worker and employer; 23% are continuing health care coverage for the entire period, with the employer paying the full cost; 25% are continuing health care coverage for a limited time, with the cost shared as usual between worker and employer; and 7% are continuing health care coverage for a limited time, with the employer paying the full cost.  For employers that have laid off workers, the majority (61%) are offering health care coverage to laid-off employees through COBRA, with workers paying the full cost.  Source:  CCH 5/28/20

DOL is moving to electronic retirement plan disclosures:  The U.S. Department of Labor (DOL) published a final rule May 27 expanding private employers’ ability to communicate retirement plan disclosures electronically. The change will reduce printing and mailing and "additional plan costs" by about $3.2 billion during the next decade, the department said in a statement.  The rule may aid employers in recovering from pandemic-related disruptions. Plan representatives and service providers have reported difficulty and even inability to complete paper-based ERISA disclosures, a problem that electronic delivery options may solve, DOL said.  Participants who prefer paper disclosures may opt to continue that service, DOL said. Under the rule, administrators may use a "notice-and-access model" to complete certain disclosures. They may also email disclosures directly to participants.  Source:  HR Dive 5/26/20

Employees still looking to switch jobs:  With unemployment numbers skyrocketing in the past nine weeks, it may seem unlikely for employees to want to switch jobs in the current economic climate.  The majority of U.S. workers who are still employed amid the COVID-19 crisis (78%) prefer to stay on with their current company for as long as they can. Still, certain segments of the workforce remain optimistic about their job prospects elsewhere even during the pandemic. More than seven in 10 workers between 35 and 54 aren’t too hopeful about landing a new job during the crisis. But those aged 18 to 24 (67%) and those 55 and above (65%) are more confident.  Age appears to play a part in a worker’s openness to switching jobs, but so does the organization’s treatment of employees: 69% of those aged 44 and younger say they would rethink staying on in their job “if they felt their current company was not doing enough to protect their employees”. Meanwhile, 60% of those from the same age group say they would even consider joining a company that is “actively making a difference to help the situation”. Given the challenges posed by the global health crisis, nearly three in five workers (56%) admit that the pandemic has forced them to rethink whether they’re in the right job.  Source:  HRD 5/25/20

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