As many states in the U.S. begin to transition away from strict lockdowns and back to regular business operations, there have been updates to both state and federal programs in place to protect employees of which businesses in Minnesota need to be aware.  Being aware of the changes can not only protect your employees, but bolster your bottom line if you are still dealing with employee absences due to COVID-19.

First, the much-anticipated, $1.9 trillion American Rescue Plan Act (ARPA) was passed by Congress, and there was much done with regard to both out-of-work Americans as well as those employees who must be away from work due to COVID-19.  While ARPA did not reinstitute the Emergency Paid Sick Leave mandates of the Families First Coronavirus Recovery Act (FFCRA) to provide paid leave or require employers to provide any additional leave, it extended the employment tax credits for qualifying leaves covered by the FFCRA from April 1, 2021 to September 30, 2021.

In addition, the Act provides additional, vaccine- and test-related reasons for which employees may take leave away from work.  It covers both the time to obtain and recover from a vaccine as well as the time awaiting results from a COVID test after being exposed.

Importantly, the ARPA resets the paid sick leave for employees (after March 31), so if someone has taken 10 days already, they could have another 10 days for a qualifying reason, and the cost of that leave would still be eligible for the employment tax rebates provided for by the Act.

In addition, the Act increases the amount of Paid Family Leave taken in accordance with the Extended Family Medical Leave Act also from 10 weeks to 12 weeks, allowing for a tax credit of up to $12,000 for employees who must be gone from work for qualifying reasons.

Finally, the Act created non-discrimination rules in order for employers to qualify for tax credits, but they are not the same as non-discrimination rules you are used to seeing.  Instead of basing discrimination on immutable characteristics, employers are forbidden from discriminating in favor of highly-compensated employees, full-time employees, or on the basis of tenure.  The leave must be applied uniformly across an entire organization.

In the State of Minnesota last week, Governor Walz issued another executive order for the State, which introduced plans for state businesses moving forward.  Still now, employers are required to allow those workers who can work remotely to do so.  However, beginning on April 15, 2021, while “employers are strongly encouraged to allow employees who can work from home to continue to work from home, they can begin to bring back employees to work on-site, if they are able to maintain safe working conditions for those employees, consistent with OSHA guidelines.”

Both the federal and state announcements give a lot for employers to think about.  Employers across the country have weathered the storm for over a year now, dealing with the impacts of COVID-19.  It is important for employers to consider the impacts of the decisions they make with regard to employee leave and employee safety and business operations in general.  If you, or your organization, need assistance in modifying your business plan while staying in compliance with the ever-changing laws, contact the Wiley Law Office, for legal advice that works.