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MARCH 2, 2021
- New $1.9 Trillion COVID Relief Bill Passes House, Moves to Senate
february 25, 2021
- Back to Basics: Small Businesses Given Priority for PPP Loans
- State Tax Treatment of Forgiven PPP Loans
FEBRUARY 3, 2021
january 11, 2021
january 5, 2021
january 4, 2021
december 28, 2020
DECEMBER 23, 2020
- Paycheck Protection Program: The Sequel
- Taking the Shot: Can You Require Your Employees to Get Vaccinated Against COVID-19?
- What Employees Need to Know About the Pending $900 Billion COVID-19 Relief Package
december 21, 2020
december 10, 2020
december 7, 2020
- New Statewide Stay-at-Home Orders in Effect as COVID-19 Surges
- Congress Working Toward $908 Billion Coronavirus Relief Package
october 28, 2020
october 22, 2020
October 19, 2020
- Hope for Companies Where COVID-19-Related Business Interruption Claims Have Been Denied Without Investigation
october 15, 2020
october 12, 2020
october 8, 2020
october 5, 2020
september 22, 2020
- California Employers Now Subject to Additional COVID-19-Related Laws Related to Cal/OSHA Reporting and Worker’s Compensation
september 21, 2020
September 11, 2020
- COVID-19-Related Paid Sick Leave Has Been Expanded in California Yet Again to All Employers with 500+ Employees
august 4, 2020
july 6, 2020
july 1, 2020
- PPP Loan Deadline May Be Extended as SBA Issues New Rules Relating to Loan Forgiveness and Eligibility
- California Looks to Pass Legislation Concerning Business Interruption Coverage Due to COVID-19
June 29, 2020
June 22, 2020
- PPP Loan Forgiveness Application Forms Updated and Streamlined
- Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19
- CDI Announces New Order Regarding Workers’ Compensation Premium Savings for CA Businesses Affected by COVID-19
june 15, 2020
june 10, 2020
- Note to the SBA: Debtors in Bankruptcy Are Eligible for PPP Loans
- California Modifies the Tolling of Statutes of Limitations in Civil Cases
june 8, 2020
June 4, 2020
may 29, 2020
may 28, 2020
- House Introduces Pandemic Risk Insurance Act of 2020 in the Wake of COVID-19 Business Interruption Claims
may 27, 2020
- Hoteliers Beware: a Return to Business Post-Pandemic Brings With It Potential Legal Liability
- House Contemplates Revisions to the Paycheck Protection Program
may 15, 2020
may 14, 2020
- U.S. House Democrats Introduce HEROES Act, a New $3T Stimulus Package
- SAFE Banking Act for Cannabis-Related Businesses Included in the HEROES Act
may 12, 2020
may 8, 2020
- Treasury and the SBA Issue Guidance Regarding the Employee Retention Credit
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- Update: Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. County Ordinance
may 6, 2020
- SBA Extends PPP Certification Safe Harbor to May 14
- EPLI Insurance and Employee Benefits in the Age of the Coronavirus
may 5, 2020
- Update: PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
- NAIC Issues Business Interruption Data Call in the Wake of COVID-19
may 4, 2020
- PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
may 1, 2020
april 29, 2020
- Planning for Your Employees' Return to the Workplace
- Los Angeles Hospitality Workers Among Those Thrown a Potential Lifeline
april 24, 2020
- Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief
- California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19
- SEC Approves Amendments to Nasdaq and NYSE Continued Listing Requirements Due to the COVID-19 Pandemic
April 23, 2020
april 21, 2020
- Additional Funding Is on the Way to Resurrect the PPP
- Certifying Your PPP Loan: Proceed With Caution
april 17, 2020
april 16, 2020
- Employment in the Wake of Coronavirus: EEOC and OSHA Guidance Allows Employers to Go Where They Could Not Go Before
- New Yorkers Ordered to Stay at Home Even Longer Amid the COVID-19 Crisis
- Paycheck Protection Program Funds Exhausted
april 15, 2020
- Attention Insurers: the CDI Has Ordered You to Fairly Investigate All Business Interruption Insurance Claims Caused By the COVID-19 Outbreak
April 14, 2020
- Insurance Companies Have Been Ordered to Provide COVID-19-Related Premium Relief to Businesses and Drivers in California
- What to Do If Your New York Business Has Been Deemed Non-Essential
APRIL 13, 2020
- IP Deadlines and Fees Extended Under the CARES Act
- Employment in the Wake of Coronavirus: Reintegrating Your Workforce in the New Normal
APRIL 10, 2020
- You Successfully Applied for and Received a PPP Loan Under the CARES Act: Now What?
- Safer at Home Order in L.A. Extended to May 15
- Maintaining Your Trade Secrets During the Coronavirus Crisis
APRIL 9, 2020
april 8, 2020
- Congress Looks to Bolster the PPP With Another $250B in Funding
- U.S. Treasury Provides Further Guidance to PPP Borrowers and Lenders
- L.A. Mayor Amends COVID-19-Related Paid Sick Leave Ordinance
april 7, 2020
- Clarifying the Paycheck Protection Program: Payment of Insurance Premiums and Loan Forgiveness under the CARES Act
April 3, 2020
april 2, 2020
april 1, 2020
March 31, 2020
march 30, 2020
- Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. Ordinance
- Insurance Coverage Potentially Triggered by COVID-19
- Attention Insurers: CDI Orders Mandatory Call for Business Interruption Coverage Information in the Wake of COVID-19
- DOL Is Requiring Employers to Post Families First Employee Rights Notice
March 27, 2020
- A Comprehensive Guide to Understanding Coronavirus-Related State Assistance Programs: Who is Giving What to Whom (Part II)
- HHS Relaxing Enforcement of HIPAA to Facilitate Sharing of Information During the COVID-19 Crisis
March 26, 2020
march 25, 2020
march 24, 2020
- Navigating the Coronavirus Pandemic: a Critical Business Review Checklist
- SBA Loans for Companies Impacted by Coronavirus
- SEC Relaxes Federal Proxy Rules for Annual Meetings
march 23, 2020
- Federal Reserve Responds Boldly to Coronavirus-Related Economic Downturn
- The Number of Jurisdictions Implementing Stay-at-Home Orders Is Increasing Exponentially
- Michelman & Robinson’s Guide to Coronavirus-Related Paid Sick Leave and Unemployment Insurance Laws in the Tri-State Area
MARCH 21, 2020
MARCH 20, 2020
- New York Governor’s PAUSE Order
- Illinois Governor’s Statewide Stay-at-Home Order
- Force Majeure Clauses in Commercial Real Estate Contracts
MARCH 19, 2020
- SEC Provides Regulatory Relief for Public Reporting Companies
- Student Loan Borrowers Can Breathe a Sigh of Relief, At Least Temporarily
- California Governor's Statewide Stay-At-Home Order
MARCH 18, 2020
- "Shelter in Place" Orders
- Telecommuting in the Age of Coronavirus
- Families First Coronavirus Response Act Just Passed by the Senate and Signed Into Law by the President
MARCH 17, 2020
- M&R Coronavirus Risk Mitigation Team: A Multi-Disciplinary Legal Team Ready To Immediately Address A Host Of Coronavirus-Related Issues for Businesses, Quickly And Holistically
MARCH 16, 2020
MARCH 5, 2020
California Legislature Expands COVID-19 Supplemental Paid Sick Leave
MARCH 29, 2021
On March 19, 2021, Governor Gavin Newsom signed Senate Bill 95, which requires employers in California with more than 25 employees to provide COVID-19 supplemental paid sick leave to covered employees. The bill takes effect today (March 29), and the requirements will apply retroactively to January 1, 2021. California’s previous supplemental paid leave expired on December 31, 2020 and SB 95 broadens the scope in various material ways.
Given the expansion of coverage, SB 95 (codified in Cal. Labor Code § 248.2 et seq.) raises significant compliance concerns for covered employers in California. And, because the bill is now in effect, covered employers need to understand what must be done in order to comply without expending unnecessary business costs. To this end, the following Frequently Asked Questions lay out the key aspects of SB 95 and answers some of the questions Michelman & Robinson, LLP has recently received about the new legislation.
Q. What employers are covered under the law?
A. The law broadens the definitions of covered employers to include employers who employ 26 or more employees nationwide.
Q. What are the qualifying reasons for which an employee may take leave under the law?
A. The law provides a total of seven qualifying reasons under which an employee will qualify for supplemental paid sick leave. These include receiving a vaccination, caring for others, school closures, and child care closures – all of which were not qualified reasons under previous legislation. The reasons are as follows:
- The covered employee is subject to a quarantine or isolation period related to COVID-19 as defined by an order or guidelines of the State Department of Public Health, the Centers for Disease Control or Prevention, or a local health officer who has jurisdiction over the workplace. If the covered employee is subject to more than one of the foregoing, the covered employee must be permitted to use COVID-19 supplemental paid sick leave for the minimum quarantine or isolation period under the order or guidelines that provides for the longest such minimum period;
- The covered employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
- The covered employee is attending an appointment to receive a vaccine for protection against contracting COVID-19;
- The covered employee is experiencing symptoms related to a COVID-19 vaccine that prevent the employee from being able to work or telework;
- The covered employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis;
- The covered employee is caring for a family member who is subject to a quarantine or isolation period related to COVID-19 or who has been advised to self-quarantine due to COVID-19; or
- The covered employee is caring for a child whose school or place of care is closed or otherwise unavailable for reasons related to COVID-19 on the premises.
Q. How many hours of supplemental paid sick leave must a covered employer provide under the law?
A. A worker considered to be “full-time” by the employer is entitled to 80 hours of supplemental paid sick leave. Additionally, an employee who worked or was scheduled to work, on average, at least 40 hours per week in the two weeks before they received supplemental paid sick leave is similarly entitled to 80 hours of leave. Part-time employees are eligible for variable leave amounts based upon the amount of hours worked.
Q. At what rate must supplemental paid sick leave be paid under the law, and is there a monetary cap?
A. For nonexempt employees, supplemental paid sick leave shall be paid at the highest of four provided methodologies: 1) the rate calculated in the same manner as the regular rate of pay for the work week in which the covered employee uses sick leave; 2) the rate calculated by dividing the employee’s total wages (not including overtime) by the employee’s total hours worked in the full pay periods of the prior 90 days of employment; 3) the state minimum wage; or 4) the local minimum wage. This calculation requires an individual analysis each time an employee takes qualified leave.
For exempt employees, the rate of pay shall be calculated in the same manner as the covered employer calculates wages for other forms of paid leave (i.e., by determining the employee’s hourly rate of compensation based on the employee’s salary). Importantly, the amount of COVID-19 supplemental paid sick leave is capped at $511 per day, and $5,110 total per employee.
Q. May an employer require an employee to exhaust his or her regular paid sick leave (or other paid or unpaid time off) before providing supplemental paid sick leave under the law?
A. No. Supplemental paid sick leave under the law is to be used first, followed by any other paid or unpaid leave, paid time off, or vacation time that the employee may be entitled.
Q. Is the leave bank under the law in addition to other forms of paid and/or unpaid leave?
A. Yes. The leave bank is in addition to the paid sick leave previously made available under AB 1867 (which expired in December 2020).
Q. How does paid sick leave under the law interact with other COVID-19-related leave requirements, including the LA County Regulations and OSHA’s Emergency Temporary Standard?
A. Employers who already provide COVID-19 specific supplemental paid sick leave for leave taken after January 1, 2021 that is available for the same reasons and paid at the same rates may count those hours toward the supplemental paid sick leave obligation under the new legislation. This means that an employer will not be subject to any form of double payment.
Q. Do employers have any notice and tracking requirements under the law?
A. Yes. Employers must track available supplemental paid sick leave and provide the same as a separate line item on employee paystubs. Employers must additionally provide employees with written notice of the supplemental paid sick leave made available by the law, on either the employee’s itemized wage statement or in a separate writing provided on the designated pay date with the employee’s payment of wages. The Department of Industrial Relations has provided a sample notice, which can be found here: https://www.dir.ca.gov/dlse/2021-COVID-19-Supplemental-Paid-Sick-Leave.pdf.
Q. Is a covered employer required to show the supplemental paid sick leave bank on wage statements?
A. Yes, employers are required to provide the supplemental paid sick leave bank on each wage statement (separate from the ordinary leave bank). For employees with part-time or variable schedules, the law allows employers to do an initial calculation of leave time with the notation “variable” next to it. Employers will need to provide updated calculations related to the supplemental paid sick leave bank for these employees upon request.
Q. Does the law apply retroactively and when does it end?
A. Yes, the law applies retroactively to January 1, 2021 for leaves taken for any reason covered by the legislation, and ends September 30, 2021, unless extended or otherwise replaced. If an employer did not compensate a covered employee in an amount equal to or greater than the amount the employee is entitled to under SB 95, the employer shall provide such retroactive compensation. However, this obligation only triggers upon written or oral request by a covered employee of the employer. Employers should carefully track employee absences and the reasons for said absences to prepare for any employee requests of this nature.
Of course, the employment attorneys at M&R are available to answer any questions you may have about the implications of SB 95.
We are working diligently to keep our clients up to date on coronavirus-related developments. Nevertheless, these developments are changing daily and, in some cases even hourly, so it is important that you make sure you are dealing with the most current information. That being said, this alert is not offered, and should not be relied on, as legal advice. You should consult an attorney for guidance and counsel regarding any specific concern or situation.