As business closures increase due to the COVID-19 pandemic, employers are faced with questions about compensation and health benefit coverage for their employees. Government relief measures may provide compensation for businesses and individuals in certain situations. In other cases, existing rules on employee rights will apply.

Paid leave may be required for some employees by federal or state law. Also, some state insurance regulators are requiring insurance carriers to provide policyholders with additional flexibility regarding premiums and coverage, and some carriers are making similar changes independent of state requirements. This Compliance Overview provides a summary of the issues that employers may encounter when terminating or suspending employment due to COVID-19.

Legal Update HeaderOn March 24, 2020, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) issued guidance explaining the paid leave requirements under the federal Families First Coronavirus Response Act (FFCRA).

The FFCRA expanded the federal Family and Medical Leave Act (FMLA) to allow partially compensated employee leave for child care purposes related to COVID-19. The FFCRA also provided for employee paid sick leave for specific COVID-19-related reasons, including an employee’s own illness or quarantine. The Act included other measures to address the effect of the coronavirus pandemic on workers.

The Occupational Safety and Health Act (the Act) was enacted to regulate workplace safety and health. The Act is administered by the Occupational Safety and Health Administration (OSHA).

The Act and its accompanying regulations identify a significant number of recognized hazards and establish safety and health standards to address them. However, even when no standard specific to a recognized hazard applies, the Act requires employers to look after their employees’ general safety and health.

The U.S. Department of Health and Human Services (HHS) issued a bulletin to remind covered entities and their business associates that the HIPAA Privacy Rule’s protections still apply during a public health emergency, such as the current coronavirus (COVID-19) outbreak.

The bulletin also outlines the different ways that patient information may be shared under the Privacy Rule during an outbreak of infectious disease or another emergency situation.

In light of the spread of COVID-19 in the United States, the Department of Labor (DOL) has published answers to frequently asked questions on how employers can stay in compliance with the federal Fair Labor Standards Act (FLSA), which regulates wage and hour conditions for employees.

When responding to pandemics or other public health emergencies, employers must be aware of the effects these events can have on wages and hours worked under the FLSA. The guidance offered by these answers provides information on common issues employers may face, and will be particularly useful for those who are considering teleworking as a prevention strategy, or those dealing with personnel shortages.