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Business owners are being challenged by a rapidly changing work environment due to the COVID-19 (coronavirus) pandemic. State officials are implementing policies that affect businesses, consumers, and employees daily. Here is a brief overview of businesses’ rights and responsibilities concerning employment issues and creating a safe workplace.
Note: Many of these regulations are brand new, and the details are still being determined. The Better Business Bureau strongly encourages business owners to check their state government, the IRS, the Department of Labor, CDC and OSHA websites directly for updates and guidelines, as each policy varies from state to state.
Check with your state’s office to ensure that you are following the appropriate labor regulations.
What are my requirements for providing paid sick leave to my employees?
The Families First Coronavirus Response Act (FFCRA), which went into effect April 1, 2020, requires companies under 500 employees to provide paid sick leave and expanded family and medical leave. This covers employees impacted by quarantine requirements, those caring for child whose school or daycare has been closed, or someone sick with COVID-19 or a similar condition.
The amount of paid leave employees are eligible to receive depends on the reason for their absence. This Department of Labor guide will help employers calculate the pay and time offer they are required to offer employees. For more answers, see this guide from the Department of Labor.
Businesses with fewer than 50 employees can request a small business exemption, but the exact criteria for this exemption is forthcoming.
Will my business be reimbursed for offering sick leave?
Yes. Businesses with less than 500 employees will be fully reimbursed by the federal government within three months through tax credits. More information is available at irs.gov to explain how the credits can be claimed against payroll taxes and any excess owed will be paid as a refundable credit. Consult a trusted tax professional for advice.
I’m self-employed. Do any of these new sick leave regulations impact me?
Self-employed people who are paid as independent contractors are also eligible for tax credits if they are facing similar coronavirus-related circumstances. Again, the details of this program are still in progress.
Do I still need to pay my staff their normal wage, even if they are working less?
It depends. Exempt, salaried employees generally must receive their full salary in any week in which they perform any work, according to the Department of Labor. However, if an employer offers vacation benefits, the business can require employees to use their accrued leave on specific days.
Businesses only need to pay for hours worked by hourly employees. The law does not require companies to pay hourly employees for a specific number of hours. For example, if a business needs to reduce a non-exempt employee’s weekly hours from 40 to 10, the company only needs to pay for actual hours worked (in this case, 10 hours).
For more details, refer to the Department of Labor.
Are my employees eligible for unemployment benefits if my company needs to temporarily close or reduce staff?
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes a big expansion of both the length and amount of unemployment insurance, including unemployment benefits for workers who have been temporarily laid off. The complete details and how it impacts businesses have yet to be released.
As of March 12, the federal government started allowing states to amend their laws to provide unemployment insurance benefits related to COVID-19. States may now pay benefits in the following situations:
- An employer temporarily ceases operations due to COVID-19, preventing employees from coming to work
- An individual is quarantined with the expectation of returning to work after the quarantine is over
- An individual leaves employment due to a risk of exposure or infection or to care for a family member
Individual states can decide how to implement these changes. BBB strongly encourages businesses to check their state’s unemployment insurance program for the rules impacting your business.
Are there any specific workplace safety guidelines I need to follow?
There aren’t Occupational Safety and Health Administration (OSHA) standards specifically covering COVID-19. However, existing OSHA requirements do apply in this situation. The agency created this page to highlight some of the requirements. It also has specific guidelines for businesses in healthcare, laboratory work, airlines and a few other fields.
What does OSHA recommend I do to create a safe work environment for my employees?
OSHA has this guide on how to prevent worker exposure to the coronavirus, which is believed to spread primarily through droplets produced when an infected person coughs or sneezes. The guide classifies workplaces into three levels of exposure risk: low (office workers); medium (daycare employees); and high (healthcare professionals), and provides guidance for each type of business.
For most employers, protecting workers involves taking basic preventive measures. OSHA suggests increasing physical distance between employees by allowing them to telecommute or work staggered shifts. Businesses should reduce their employees’ contact with the public by creating physical barriers and/or distance between them and customers. Also, businesses should provide employees with appropriate personal protective equipment, such as gloves, and cleaning supplies.
For more Information:
BBB has additional business tips on navigating the coronavirus outbreak at BBB.org/smallbusiness
BBB has compiled business resources for localities across the United States and Canada at BBB.org/resources.
More coronavirus information is available, including information on scams, price gauging, and charitable donations, at BBB.org/Coronavirus.