The Coronavirus Aid, Relief and Economic Security (CARES) Act, passed by US Congress in March in response to the COVID-19 pandemic, permits a “qualified individual" to increase the amount they can borrow from a 401(k). Such individuals may borrow 100% of their account balance up to $100,000 (less any outstanding loans). The deadline for taking enhanced loans is September 22. In a recent article by Forbes, McDermott Will & Emery partner Jeff Holdvogt highlights some of the tax implications individuals should consider. Access the article.
What do unused paid-time-off (PTO) days, student loan debt and the coronavirus have in common? An opportunity for employers to provide financial relief to employees who are increasingly putting off vacations due to the COVID-19 pandemic. In a recent article by the Society of Human Resource Management, Jeff Holdvogt, a partner in McDermott’s Chicago office, explained that more employees, particularly Millennials, are telling employers that benefits to help pay off student loan debt would go a long way to attracting and retaining them. Access the article.
COVID-19 safety plans are a way for employers to demonstrate to their employees, the public and, in certain cases, state governments that they have considered the risks associated with COVID-19 in their workplaces and have developed a response to these concerns. The plans establish and explain the policies, practices and conditions necessary to meet the Centers for Disease Control and Prevention (CDC) and Occupational Safety and Health Administration (OSHA) standards relating to worker and customer exposure to COVID-19. These plans may also incorporate guidance from the state department of health and industry specific guidelines issued via state executive orders. Access the article.
Many employers who recently reopened are now facing a new challenge—employee off-duty conduct. At stake are both workplace and customer safety as well as the company’s reputation. A recent webinar featuring McDermott’s Michael Sheehan, Ron Holland, Abigail Kagan and Brian Mead covers various scenarios employers are likely to face and provides practical strategies to navigate and mitigate potential risk. Access key takeaways.
On August 3, 2020, the US District Court for the Southern District of New York struck down four parts of the US Department of Labor’s (DOL) Final Rule implementing the Families First Coronavirus Response Act (FFCRA). A copy of the court’s ruling is available here. The FFCRA provides COVID-19-related sick leave and family leave to employees of businesses with fewer than 500 employees. Access the article.
One round of layoffs is bad enough for rank-and-file morale. Subsequent layoffs can be even tougher on remaining employees, who may mourn the loss of their colleagues and wonder if they will be next. Employers can take steps to limit the damage and avert potential liability problems before and during the layoff process. Open communications before and after layoffs, to the extent possible, can help workers come to terms with the layoffs. Under the Older Workers Benefit Protection Act, employees who are 40 years old or older are guaranteed time to think about whether or not to sign a release—21 days if only one person is being laid off, 45 days if two or more are laid off. After signing, they have another seven days to revoke the acceptance of the agreement. When the release is signed in exchange for a severance package, the separation agreement must list the job titles and ages of all employees in the organizational unit, showing which are being laid off and...
Prior to the pandemic, ultra-low unemployment at roughly 3.3% put a spotlight on ‘lifestyle benefits’ for employees such as gym memberships and pet sitting. When the COVID-19 crisis hit, the focus immediately shifted for many plan sponsors. Some employers are now offering high-deductible health plans (HDHPs) paired with health savings accounts (HSAs). Scaling back on company matches to 401(k) plans and contributions to profit sharing accounts are two other areas where employers are trying to save money, said Lisa Loesel, an employee benefits partner at McDermott. “Depending on what kind of plan they have and the terms set forth for them, we have seen plan sponsors delay the timing of their contributions, change the amount, move from a fixed to a discretionary amount or even cut their contributions indefinitely,” Loesel said in a recent article for PLANSPONSOR Magazine. Among sponsors offering a pension plan, more are de-risking their plans. “The market...
Employers in Spain are contending with the ongoing effects of the coronavirus pandemic, which continues to raise health and safety concerns. A resurgence of COVID-19 cases in July prompted some parts of the country to re-implement restrictions that had been lifted earlier. "Spain was among the countries hit hardest by the coronavirus," said Brian Cousin, head of the employment practice group at McDermott Will & Emery, in a recent article by the Society for Human Resource Management (SHRM). Employers and HR professionals in Spain should monitor news about national and local restrictions and regulations, as well as new guidance issued by local health authorities, the Spanish Health Ministry and the World Health Organization, according to Cousin. "Local and regional requirements can change on a daily basis," he said. Access the article.
The employment and business decisions made by employers under the specter of the unprecedented COVID-19 pandemic are now being tested by plaintiffs' lawyers. Employers of all sizes should expect a flood of employment litigation alongside ever-changing conditions, constantly updated guidance and, at times, conflicting state and local guidance. Litigation avoidance will require a team effort and proactive communication – both internally and externally. This article outlines the types of claim that are emerging and are expected to increase as a result of COVID-19. Access the article.
The COVID-19 Global Guide for Business provides employers with the latest information on returning to work. Nations around the world are struggling to reopen amid the coronavirus pandemic, and government responses to COVID-19 differ significantly based on local laws, culture, politics and the severity of the outbreak. Legal professionals in 50+ countries contributed to this complimentary guide, which now has two volumes: Responding to the Pandemic and Returning to Work. Both are designed for C-level executives, HR professionals and in-house counsel. Access the COVID-19 Global Guide for Business.