| As COVID-19 becomes a matter of increasing global concern, we’d like to inform you that we remain available to meet your legal needs, as we always have, by phone, fax and e-mail. As we all deal with COVID-19, here is some employment-related information that may be helpful: - You are not required to pay employees if you close down (unless you close mid-day, in which case you must pay them for 50% of their scheduled workday).
- Unemployment insurance does apply to time off due to employer-initiated temporary “furloughs” for employees who are off work entirely. The Governor has signed an Executive Order waiving the usual 7-day waiting period for time off for this purpose. Here is a link to the EDD website about unemployment insurance, SDI, and PFL payments that may be available for employees: https://www.edd.ca.gov/about_edd/coronavirus-2019.htm
- Unemployment insurance does apply to time off due to employer-initiated temporary hours reductions between 10% and 60%. In this situation, the employer sets it up under EDD’s “Work Sharing” program, which makes it very easy for their employees to apply. Here is a link to the EDD’s Work Sharing Program website: https://www.edd.ca.gov/unemployment/Work_Sharing_Program.htm
- Of course, unemployment insurance would also apply to lay-offs if you do not re-open or return all employees to work.
- If you remain open, unemployment insurance may apply to time off work due to school closures and childcare issues. The employee would have to apply through EDD.
- California State Disability Insurance (SDI) applies to time off for the employees who are home sick with COVID-19 or if they are home due to exposure. The Governor has signed an Executive Order waiving the usual 7-day waiting period for time off for this purpose.
- California Paid Family Leave (PFL) applies to time off work due to the illness of someone for whom the employee is the caregiver. PFL does not apply to time off work due to school closures or office closures (at least, not at this time).
- If you close, we advise against requiring employees to use their own vacation or PTO for time off at this time, but rather, suggest that you give them the option. It is their option whether or not to use paid sick leave benefits for time off for sick leave purposes.
- As you may know, the House of Representatives has sent an Emergency Coronavirus Bill to the Senate. As currently drafted, it is our understanding that it includes a 14-day paid sick leave mandate that will apply to employers with 500 or fewer employees. It will apply if the employee is home sick with COVID-19 or if they are home due to exposure, and may apply partially for school closures. The 14-day paid sick leave mandate will not apply to time off work for any other reason. The bill will undoubtedly be modified before it is finalized, hopefully sometime this week.
The following sources also may be referenced for additional information (although the information is not always updated or consistent): Please contact Scott & Whitehead, EAC Hotline Attorneys, at (949) 222-0166 with questions. __________ This bulletin is provided as a service to our clients and other friends to highlight current developments in the law. It is not intended to provide a legal opinion or specific legal advice. Should issues arise involving these, or other legal matters, please contact Scott & Whitehead at (949) 222-0166 or the EAC Office at (714) 794-4253. | |
