BAN Blog

Latest COVID-19 News for Employers: Unemployment Insurance

Posted on by Bobbi Kloss, BAN Director of Human Capital Management

With many businesses being faced with mandatory State orders to temporarily close or scale back their services in an ability to minimize the spread of the Coronavirus (COVID-19), workers are being displaced. Turning to the unemployment lines, employees are questioning their employers about their potential eligibility for Unemployment Insurance (UI) benefits. While the determination of eligibility is based upon many determining factors such as length of employment, wages earned over a given period of time and reason for separation, an employer is not in the position nor should not attempt to make that determination.

Concerned employers though can be aware that the U. S. Department of Labor (DOL) on March 12 issued guidance permitting States “significant flexibility” in amending the guidelines for which an employee may receive benefits due to the effects of COVID-19.  “Clarifying the flexibility in which a person may be eligible for unemployment insurance benefits during the coronavirus outbreak will ease financial burdens for those workers affected by the virus,” said Assistant Secretary for the Employment and Training Administration John Pallasch.

This DOL guidance provides that UI benefits may be available for employees:

(1) When an employer temporarily ceases operations due to COVID-19, preventing employees from coming to work;

(2) An individual is quarantined with the expectation of returning to work after the quarantine is over; and

(3) An individual leaves employment due to a risk of exposure or infection or to care for a family member.

In addition:

  • Federal law does not require an employee to quit in order to receive benefits due to the impact of COVID-19, and
  • If an employee on leave is receiving payment for their leave, the employee is not deemed unemployed and therefore not eligible for unemployment insurance.

Information regarding eligibility for benefits and how benefits will be treated for charging an employer’s UI account for benefits paid out is changing day to day and is different state to state.  It is important that employers refer to their individual state unemployment office for guidance, a listing of which is provided here as well as refer their employees to their local UI office for the latest information regarding eligibility.

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With more than 20 years of Human Resource Generalist & Executive Level HCM Management experience, Kloss serves as the Director for the Human Capital Management Department for Benefit Advisors Network (BAN). With a deep understanding of the increasingly complex and diverse HR industry, Kloss provides her expertise to BAN’s employee benefit brokerage members as well as their employer clients. She oversees all HR-related functions for the association, initiating pro-active, strategic compliance practices, which limits exposure in all areas of potential liability for BAN members and their clients.

Coronavirus: Employers, Be Practical and Vigilant

Posted on by Bobbi Kloss, BAN Director of Human Capital Management

With the spread of the Coronavirus (COVID-19) across the globe and 100+ confirmed cases with an unfortunate 6 deaths in the United States, employers who haven’t already developed an Infectious and Communicable Disease policy in response to diseases such as the flu should be developing a policy and responsiveness plan.

An effective preparedness plan would include how to keep their employees informed and safeguarded (to the extent possible), while managing continuous business operations as well as interactions with the public and supply chain. Employers may want to look at their disaster preparedness plan which would provide considerations for maintaining staffing and business relationships with limited or no access to facilities. Like any policy development, employers should bring together a team with members from each level of the organization to ensure that all group considerations are being taken into effect.

Also, employers need to be strategic and recognize that COVID-19 is a communicable disease and that their policy should be written to ensure a comprehensive approach.

For example, do you know that the flu is far more rampant and deadlier than COVID-19?

Across the globe and since late 2019, COVID-19 statistics show that there are reported 92, 700+ cases with 3,100 deaths and recovery of 48,400 people.

In the U. S., the Center for Disease Control estimates that during the 2019-2020 flu season there have been at least 32 million flu illnesses, 310,000 hospitalizations, and 18,000 deaths.

Many employees come to work sick with coughing, sneezing, sore throat, runny nose, and watery eyes when PTO is exhausted or workloads demand responsiveness. The cold or flu (which are both contagious) quickly spread around the office, yet many employers do not have a policy in response to employees coming to work sick.

The CDC has shared that the health risk in the U.S. is a “low risk of exposure” at this time for the general public. Employers with employees who travel to international locations that are affected are at an elevated risk. Also, those who work in health care and anyone who has had close contact with persons affected with COVID- 19 have a higher risk. Employer policies should take into consideration the chance for risk and exposure of the employees, considering potential exposure from family members.

There are published guidelines from the CDC for considerations when developing a policy to respond to COVID-19. In conjunction with the CDC, employers may also look to the Occupational Safety and Health Administration (OSHA) for additional resources on policy considerations when developing their policy.

Please also contact your Benefit Advisor for services that are available to assist you in developing a responsive Infectious and Communicable Disease policy.

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With more than 20 years of Human Resource Generalist & Executive Level HCM Management experience, Kloss serves as the Director for the Human Capital Management Department for Benefit Advisors Network (BAN). With a deep understanding of the increasingly complex and diverse HR industry, Kloss provides her expertise to BAN’s employee benefit brokerage members as well as their employer clients. She oversees all HR-related functions for the association, initiating pro-active, strategic compliance practices, which limits exposure in all areas of potential liability for BAN members and their clients.

Is it a Volunteer Program or Employee Activism?

Posted on by Bobbi Kloss, BAN Director of Human Capital Management

Much is in the news today surrounding employee activism and it has employers wondering “do our policies open the door for employees to turn our volunteer program into an act of activism?”

Employer-based volunteering to help the disadvantaged – whether it be people, animals, or the environment – has been in the fabric of our workplaces since at least the 19th Century. Organizations such as the YMCA and the Salvation Army partnered with larger employers as a means of securing funding to further their cause. Through employee payroll deductions, employees were, and continue to, be able to support their philanthropic values by directly donating money through agencies such as United Way.

Read the full article

Extension of Transition Relief for Grandmothered Plans Through 2021

Posted on by Stacy Barrow

On January 31, 2020, the Centers for Medicare & Medicaid Services (CMS) announced a one-year extension to the transition policy (originally announced November 14, 2013, and extended six times since) for individual and small group health plans that allow issuers to continue policies that do not meet ACA standards.  The transition policy has been extended to policy years beginning on or before October 1, 2021, provided that all policies end by January 1, 2022.  This means individuals and small businesses may be able to keep their non-ACA compliant coverage through the end of 2021, depending on the policy year.  Carriers may have the option to implement policy years that are shorter than 12 months or allow early renewals with a January 1, 2021 start date in order to take full advantage of the extension.

Background

The Affordable Care Act (ACA) includes key reforms that create new coverage standards for health insurance policies. For example, the ACA imposes modified community rating standards and requires individual and small group policies to cover a comprehensive set of benefits.

Millions of Americans received notices in late 2013 informing them that their health insurance plans were being canceled because they did not comply with the ACA’s reforms. Responding to pressure from consumers and Congress, on Nov. 14, 2013, President Obama announced a transition relief policy for 2014 for non-grandfathered coverage in the small group and individual health insurance markets. If permitted by their states, the transition policy gives health insurance issuers the option of renewing current policies for current enrollees without adopting all of the ACA’s market reforms.

Transition Relief Policy

Under the original transitional policy, health insurance coverage in the individual or small group market that was renewed for a policy year starting between Jan. 1, 2014, and Oct. 1, 2014 (and associated group health plans of small businesses), will not be out of compliance with specified ACA reforms.  These plans are referred to as “grandmothered” plans.

To qualify for the transition relief, issuers must send a notice to all individuals and small businesses that received a cancellation or termination notice with respect to the coverage (or to all individuals and small businesses that would otherwise receive a cancellation or termination notice with respect to the coverage).

The transition relief only applies with respect to individuals and small businesses with coverage that was in effect since 2014. It does not apply with respect to individuals and small businesses that obtain new coverage after 2014. All new plans must comply with the full set of ACA reforms.

One-year Extension

According to CMS, the extension will ensure that consumers have multiple health insurance coverage options and states continue to have flexibility in their markets. Also, like the original transition relief, issuers that renew coverage under the extended transition relief must, for each policy year, provide a notice to affected individuals and small businesses.

Under the transition relief extension, at the option of the states, issuers that have issued policies under the transitional relief in 2014 may renew these policies at any time through October 1, 2021, and affected individuals and small businesses may choose to re-enroll in the coverage through October 1, 2021. Policies that are renewed under the extended transition relief are not considered to be out of compliance with the following ACA reforms:

  • community premium rating standards, so consumers might be charged more based on factors such as gender or a pre-existing medical condition, and it might not comply with rules limiting age banding (PHS Act section 2701); 
  • guaranteed availability and renewability (PHS Act sections 2702 & 2703); 
  • if the coverage is an individual market policy, the ban on preexisting medical conditions for adults, so it might exclude coverage for treatment of an adult’s pre-existing medical condition such as diabetes or cancer (PHS Act section 2704);
  • if the coverage is an individual market policy, discrimination based on health status, so consumers may have premium increases based on claims experience or receipt of health care (PHS Act section 2705);
  • coverage of essential health benefits or limit on annual out-of-pocket spending, so it might not cover benefits such as prescription drugs or maternity care, or might have unlimited cost-sharing (PHS Act section 2707); and
  • standards for participation in clinical trials, so consumers might not have coverage for services related to a clinical trial for a life-threatening or another serious disease (PHS Act section 2709).

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About the Authors.  This alert was prepared by Marathas Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act.  Contact Stacy Barrow or Alyssa Oligmueller at sbarrow@marbarlaw.com or aoligmueller@marbarlaw.com.

The information provided in this alert is not, is not intended to be, and shall not be construed to be, either the provision of legal advice or an offer to provide legal services, nor does it necessarily reflect the opinions of the agency, our lawyers or our clients.  This is not legal advice.  No client-lawyer relationship between you and our lawyers is or may be created by your use of this information.  Rather, the content is intended as a general overview of the subject matter covered.  This agency and Marathas Barrow Weatherhead Lent LLP are not obligated to provide updates on the information presented herein.  Those reading this alert are encouraged to seek direct counsel on legal questions.

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