Why Employee Experience Shouldn't Stop Short of Health Benefits

Employee experience matters. It creates more engaged and productive employees, better customer experiences, and more innovative and profitable organizations. Research from KennedyFitch’s EX Leaders Network reports that 90% of companies said employee experience (EX) will increase in importance within their organizations in the next one to two years, and 50% said they set aside budget to execute their EX strategy this year.

DOL Revises the Fluctuating Workweek Overtime Method

The U.S. Department of Labor (DOL) recently announced a final rule that allows employers to pay bonuses or other incentive-based pay to salaried, nonexempt employees whose hours vary from week to week. The final rule clarifies that payments, in addition to the fixed salary, are compatible with the use of the fluctuating workweek method under the Fair Labor Standards Act (FLSA).

PCORI Fee Amount Adjusted for 2020

The Affordable Care Act (ACA) imposes a fee on health insurance issuers and self-insured plan sponsors in order to fund comparative effectiveness research. These fees are widely known as Patient-Centered Outcomes Research Institute (PCORI) fees, and were originally scheduled to expire for plan or policy years ending on or after Oct. 1, 2019. However, a federal spending bill enacted at the end of 2019 extended the PCORI fees for an additional 10 years.

As a result, on June 8, 2020, the Internal Revenue Service (IRS) issued Notice 2020-44, which increases the PCORI fee amount for plan years ending on or after Oct. 1, 2019, and before Oct. 1, 2020, to $2.54 multiplied by the average number of lives covered under the plan. It also provides transition relief for calculating the average number of lives covered under the plan or policy (which is what the PCORI fee is based on).

Transition Relief

Because of the anticipated termination of the PCORI fee prior to its extension, issuers and plan sponsors may not have anticipated the need to identify the number of covered lives for plan years ending on or after Oct. 1, 2019, and before Oct. 1, 2020. Thus, IRS Notice 2020-44 provides transition relief for this period.

Specifically, issuers and plan sponsors may use any reasonable method for calculating the average number of covered lives for this period, in addition to existing methods, so long as it is applied consistently for the duration of the plan year.

Form 720

PCORI fees are required to be paid annually on IRS Form 720 by July 31 of each year. For plans ending in 2019, the next PCORI fee payment will be due July 31, 2020. Form 720 has not yet been updated for plan years ending on or after Oct. 1, 2019.

Immunity from Civil Liability for Coronavirus Exposure

Federal Coronavirus-related laws, including the Families First Coronavirus Response Act and the Coronavirus Aid, Relief and Economic Security Act, have included specific and limited liability provisions to encourage active participation of the medical industry in the fight against COVID-19 without fear of legal repercussions.

For the most part, this limited immunity has provided some protection to:

·         Healthcare workers in the event that they have to turn patients away;

·         Manufacturers of some respiratory masks, to allow them to provide an ample supply of masks for healthcare workers and patients without fear of legal backlash should any of those masks fail; and

·         Volunteer healthcare professionals (the provisions offer patient protection in cases of gross negligence or criminal misconduct).

As local economies begin to reopen, some states have also adopted laws that offer immunity from COVID-19-related injuries, damages and exposure. However, these state limited immunity laws have a wider application that often extends to businesses and individuals. Please review the chart on the next page for an overview of recent state-level COVID-19 immunity laws.

Action Steps

The immunity available under these state laws is often limited and applies only if specific criteria are met. Employers should review the chart below and become familiar with the conditions and scope of the immunity afforded to them by any applicable state laws.

 are enforced.

State COVID-19 Immunity Laws

State	Effective	Application	Conditions
North Carolina	May 4, 2020	·     Applies to essential businesses that provides goods and services. ·     Immunity protects from liability for customer or employee injuries or death allegedly caused by contracting COVID-19 while doing business with or while employed by the essential business. ·     Immunity does not apply to incidents of gross negligence, reckless misconduct or intentional infliction of harm.	·     Immunity applies to claims occurring on or after the issuance of the COVID-19 essential business executive order and expires when the COVID-19 emergency declaration is rescinded or expires.
Oklahoma	May 21, 2020	·     Applies to individuals and businesses in civil lawsuits for injuries from exposure (or potential exposure) to COVID-19. ·     Applies to civil lawsuits filed on or after May 21, 2020.	·     The act or omission leading to claim must follow the guidelines issued by any applicable federal or state regulation or presidential or gubernatorial executive order. ·     The guidance followed must be applicable at the time of the alleged incident.
Utah	May 4, 2020	·     Provides liability from civil litigation to individuals for damages or injuries. resulting from exposure to COVID-19 ·     Immunity does not apply to willful misconduct, reckless infliction of harm, intentional infliction of harm. ·     Immunity does not modify the state’s workers’ compensation, occupational disease or governmental immunity laws. ·     Immunity applies in addition to other immunity protections under state or federal law.	·     Exposure must take place on the premises owned or operated by that person or during an activity managed by that person.
Wyoming	May 20, 2020	·     Applies to any person, business or health care provider. ·     Applies to liability arising from acting in good faith or complying with health officer instructions. ·     Also applies to retired health care workers with an inactive license who volunteer during the public health emergency. ·     Does not apply to acts or omissions classified as gross negligence or willful/wanton misconduct.	·     Applies during a public health emergency. ·     Immunity applies only when the instructions of a state, city, town or county health officer were followed or actions were undertaken in good faith in responding to the public health emergency.

 

More Information

Please contact Better Business Planning, Inc. or your local state health department for more information on COVID-19 guidelines.

President Trump Signs Bill Amending PPP Into Law

Since being established as part of the Coronavirus Aid, Relief and Economic Security Act in March 2020, the Paycheck Protection Program (PPP) has been the subject of additional stimulus bills, legal guidance and interim final rules. In the latest development, Congress passed the Paycheck Protection Program Flexibility Act of 2020, which is a bill that provides borrowers with greater flexibility in spending PPP funds without compromising forgiveness eligibility. President Donald Trump signed the bill into law on Friday, June 5, 2020.  

What is included in the bill?

The bill, which passed with a bipartisan vote, makes the following amendments to the PPP to provide relief to borrowers:

·         Loan repayment terms—The bill extends the minimum loan term for unforgiven PPP loans from two years to five years.

·         Payroll costs vs. nonpayroll costs— For forgiveness eligibility, the bill reduces the portion of PPP funds that must be spent on payroll costs from 75% to 60%, and raises the nonpayroll cost limitation from 25% to 40%.

·         Covered period extension—The bill extends the covered period during which borrowers must spend the PPP funds to be eligible for forgiveness from eight weeks to 24 weeks from the date of origination of the loan.

·         Payroll tax deferment—The bill permits borrowers to defer payroll taxes without being penalized while still remaining eligible for loan forgiveness.

·         Extension of rehiring safe harbor—The bill extends the rehiring safe harbor by six months to provide borrowers with additional time to restore payroll levels or rehire employees without facing a reduction in the amount of forgiveness for which they are eligible. The original date was June 30, 2020, and the new date is Dec. 31, 2020.

In addition to the provisions above, the bill provides loan forgiveness eligibility exemptions for borrowers that are not able to rehire an employee or a replacement. There are also exemptions for loan forgiveness eligibility for borrowers that are not able to return to the same level of business due to complying with COVID-19-related orders or circumstances.

What’s next?

Borrowers should review the bill carefully and speak to their lender should they have any questions. In addition, borrowers should direct any questions regarding their PPP loan to their lender.

We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary. For more information about the PPP, contact Better Business Planning, Inc..

Source: Zywave, 2020. 

COVID-19 Considerations for Pharmacies

While the COVID-19 pandemic has forced many organizations to close their doors for an extended period, pharmacies across the country have remained open to provide essential medications and services. However, there are still a variety of workplace adjustments and procedures that pharmacy owners must implement in order to minimize the spread of COVID-19.

SBA Issues Two Additional PPP Final Interim Rules

The Small Business Administration (SBA) recently released two additional final interim rules to provide further guidance for Paycheck Protection Program (PPP) loan borrowers and lenders. Specifically, the two rules provide guidance for loan review procedures, loan forgiveness, and borrower and lender responsibilities.  

Accommodating At-risk Employees Amid COVID-19

The Americans with Disabilities Act (ADA) compels employers to provide reasonable accommodations to employees who need it. These accommodations can be straightforward and may include installing a wheelchair ramp or adding text-to-voice software on a computer. In many cases, the accommodation needed for an employee to perform their job is obvious.