Quick Hits - August 12, 2020 - American Society of Employers - ASE Staff

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Quick Hits - August 12, 2020

Quick HitsGovernor Whitmer prohibits firing of employees who may be sick or exposed to someone sick:  Under a new executive order issued by Gov. Gretchen Whitmer last Friday afternoon, employers are prohibited from firing or otherwise disciplining or retaliating against employees who stay home when they or close contacts are sick.  More specifically, Executive Order 2020-166 prohibits employers (including those with fewer than 50 employees) from discharging, disciplining, or otherwise retaliating against an employee for staying home when he or she is at risk of infecting others with COVID-19. Employers must treat these employees as if they were taking medical leave under Michigan's Paid Medical Leave Act. Employers may debit any hours that an employee that stays home from work uses from their accrued leave. If the employee has no paid leave, their leave may be unpaid.  More importantly, the length of leave is not limited by the amount of leave that an employee has accrued. Whitmer’s office explained her Executive Order 2020-166 as a necessary protection for Michigan workers during the ongoing COVID-19 pandemic.   The governor also noted that employers may discharge an employee who is able to return to work under the order’s provisions but chooses not to. 

VETS 4212 filing season is open:  The U.S. Department of Labor's Veterans' Employment and Training Service (VETS) and Office of Federal Contractor Compliance Programs (OFCCP) have supported affirmative actions to employ and advance in employment of covered veterans since 2008. As legislatively mandated under 38 U.S. Code Section 4212, codified at 41 CFR 61-300, contractors and subcontractors who enter into, or modify a contract or subcontract with the federal government, and whose contract meets the criteria set forth in the above legislation / regulations, are required to report annually on their affirmative action efforts in employing veterans. Data reported through form VETS-4212 is used by OFCCP in compliance evaluations.  The current reporting threshold is $150,000.  The reports deadline is September 30, 2020.  For more information, click here. 

How will you conduct open enrollment this fall? HR is considering various alternatives to live open enrollment meetings this fall.  One method is virtual benefit fairs.  "You're not going to be able to set up something where people can meet with vendors, but you can certainly do that online," DirectPath VP of Client Services Kim Buckey said. Telephonic enrollment has also garnered more attention amid the pandemic. Employees can schedule an appointment to chat with a representative about an employer's benefits offerings and, in the same phone call, learn about their options and enroll on the spot.  Actual elections for benefits will also move to online either through the payroll function if integrated, a health benefit provider system, or through email and fillable forms.  Source:  HR Dive 8/6/20

Expanded benefits not stopping people from working:  study published by the National Bureau of Economic Research estimated that two-thirds of unemployed workers received benefits greater than their lost earnings and a fifth received benefits that are at least twice their lost wages. However, a report out of Yale University found that the enhanced unemployment did not reduce employment. The report’s abstract states: “We find that that the workers who experienced larger increases in UI generosity did not experience larger declines in employment when the benefits expansion went into effect. Additionally, we find that workers facing larger expansions in UI benefits have returned to their previous jobs over time at similar rates as others. We find no evidence that more generous benefits disincentivized work either at the onset of the expansion or as firms looked to return to business over time.” A number of concerns are likely stopping people from coming back to work from childcare to safety concerns.  Employers have to rethink the workspace and technology today especially if remote working is a successful alternative.  Source:  Forbes 8/4/20

What if schools don’t open in the fall?  Some employers may wish to explore the possibility of having employees who have exhausted FFCRA benefits work reduced or modified schedules to allow them to accommodate childcare needs. Or, if that alternative isn’t feasible, then furloughs may be an option. Many states have also expanded their unemployment programs to protect individuals who cannot accept an offer to return to work due to their childcare obligations. Employers whose employees have run out of paid family leave should consider informing affected employees, including those who now may find themselves on unpaid leave, of these potential benefits.  Source:  Vinson & Elkins LLP 7/30/20

The pandemic may cause older workers to delay retirement:  With the economy tanking in part, a recent survey indicates a change in attitudes of older workers. The SimplyWise July 2020 Retirement Confidence Index reveals the following: 72% of Americans now plan to work in retirement. (Up from 67% in May.) 1 in 5 Americans in their 60s have been laid off/furloughed due to COVID-19. 37% of Americans believe they will not have enough money set aside to ever retire. The bottom-line, according to Sandra Hurley, Operations Manager at Hayden Girls in Los Angeles: “Unless you’ve done extremely well for yourself, you can probably always use a little extra income for those extra expenses. Whether it’s a vacation, a nicer car, or a club membership, it helps to earn some cash.”  However, older workers may be the first laid off if more highly paid.  Employers need to balance need with EEO considerations.  Source:  Forbes 8/2/20

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