On Friday, June 5th, the President signed into law H.R. 7010 which amends several provisions of the CARES Act and the Paycheck Protection Program. In particular, the following changes are effective immediately:
Loan Forgiveness
The “covered period” for forgiveness is extended to 24 weeks or December 31, 2020, whichever is earlier. This additional time is critical for those businesses which are just now beginning to re-open.
The percentage of loan proceeds that must be used for payroll costs was changed from 75% to 60%. Keep in mind, the legislation adds a new wrinkle requiring you to meet this 60% threshold to obtain any forgiveness, as opposed to previously where it was proportional. In other words, you now need to make sure you hit 60%; otherwise there is no forgiveness.
The period to restore the number of employees and amount of payroll to qualify for full forgiveness has been extended to December 31, 2020.
The reduction penalty no longer applies if the borrower, in good faith, is able to document that:
The borrower was unable to rehire a terminated employee and unable to hire a similarly qualified employee to replace the terminated employee; and
The borrower was unable to return to the same level of business activity as before February 15, 2020, due to compliance with guidance issued by Secretary of Health and Human Services, the Director of Center for Disease Control and Prevention or the Occupational Safety and Health Administration, during the period from March 1, 2020 until December 31, 2020, related to the maintenance of standards for sanitation, social distancing or any other worker or customer safety requirements related to COVID-19
Loan Details
The time to pay back any unforgiven portion of a PPP loan is increased to 5 years. This is automatic for loans submitted after June 5; pre-existing loans can also be extended to 5 years, but require agreement by the lender.
Payment of principal, interest and fees is deferred until “the date on which the amount of forgiveness determined…is remitted to the lender.”
Borrowers can now apply for loan forgiveness up to ten months from the day their covered period ends (whichever period is elected); if they fail to do so, no forgiveness will be allowed.
Payroll Taxes
Borrowers may defer 50% of the employer share of their 2020 Social Security taxes until end of 2021 and the other half until end of 2022, even if the borrower’s PPP loan is forgiven prior to December 31, 2020 (originally, deferral was not permitted for a borrower with a forgiven PPP loan).
*Attorney Advertising: The foregoing is a summary of the laws discussed above for the purpose of providing a general overview of these laws. These materials are not meant, nor should they be construed, to provide information that is specific to any law(s). The above is not legal advice and you should consult with counsel concerning the applicability of any law to your particular situation.
Each business or entity, including those that have been designated as essential under Empire State Development’s Essential Business Guidance, must develop a written Safety Plan outlining how its workplace will prevent the spread of COVID-19.
A business may fill out THIS TEMPLATE to fulfill the requirement, or may develop its own Safety Plan. This plan does not need to be submitted to a state agency for approval but must be retained on the premises of the business and must made available to the New York State Department of Health (DOH) or local health or safety authorities in the event of an inspection. Business owners should refer to the State’s industry-specific guidance for more information on how to safely operate. For a list of regions and sectors that are authorized to re-open, as well as detailed guidance for each sector, please visit: www.forward.ny.gov. If your industry is not included in the posted guidance but your businesses has been operating as essential, please refer to ESD’s Essential Business Guidance and adhere to the guidelines within this Safety Plan.
Please continue to regularly check the New York Forward site for guidance that is applicable to your business or certain parts of your business functions, and consult the state and federal resources listed below.
Here is a helpful list of things to keep in mind during this time:
New York businesses must create a COVID-19 health and safety plan for employees and the public. A template includes provisions for developing physical distancing protocols, providing personal protective equipment to employees, creating hygiene and cleaning protocols, implementing communication practices, creating a COVID-19 screening process, adopting contact tracing protocols, and developing a plan for cleaning and disinfection. It’s also a great resource for NJ businesses.
Make sure to implement mandatory health screening assessments including a questionnaire and temperature checks.
Limit the total number of employees in the office, enforce 6ft social distancing, and modify/reconfigure the office to allow for social distancing.
Provide workers with facemasks at no cost and have an adequate supply in case of need for replacement. Train workers on how to use PPE. Limit the sharing of objects (i.e. tools, machinery, etc.)
Adhere to hygiene, cleaning and disinfection requirements of the CDC and Department of Health. Provide and maintain hand hygiene stations in the office. Clean and disinfect the offices on a routine basis.
Communicate, post signage and train employees on COVID 19 issues.
Employees who are sick should stay home or return home if they become ill at work.
Don’t forget about your leave obligations under FFCRA, Emergency FMLA, New York State COVID-19 leave, New York Paid Family Leave, New York City or Westchester Earned Sick Time, New Jersey Earned sick Leave, or short-term disability leave
Consider a delayed reopening or a slow opening, allowing employees to continue to obtain increased unemployment benefits.
Don’t forget about your wage and hour obligations i.e. when you reduce salary/hours, pay wages, furlough employees, have employees work from home, impose temperature checks, pre-shift sanitizing, or daily check-in procedures.
*Attorney Advertising: The foregoing is a summary of the laws discussed above for the purpose of providing a general overview of these laws. These materials are not meant, nor should they be construed, to provide information that is specific to any law(s). The above is not legal advice and you should consult with counsel concerning the applicability of any law to your particular situation.
Strategizing on how to bring some furloughed employees back? Check out this great video from colleague, Chelsea Whalley of J Donovan Financial.
1. Create a staffing plan that revolves around the needs of the COMPANY first. Ask yourself where you anticipate being busy and where you may be slower. Create a plan accordingly.
2. Choose which staff return based on unique skill sets needed, overall job performance, seniority/tenure, or their willingness to do jobs outside of their normal scope.
3. DO NOT discriminate based on age, perceived disabilities, or by retaliating for taking paid sick leave.
Make sure to DOCUMENT your process ahead of time and COMMUNICATE to your staff your plan to avoid unnecessary stress for everyone.
*REMEMBER TO ALWAYS CONSULT YOUR ATTORNEY OR HUMAN RESOURCES VENDOR FOR ADVICE* If you need these types of vendors, we can refer you to them.
As talks of reopening start happening and, as an employer, you begin to make a strategy for what this will look like, Mental Wellness should be in the forefront of your checklist.
Mike Veny, Mental health speaker, drummer and best-selling author shares a powerful checklist on how to support your employees during this time. This list includes:
1. Change the way you view everyone.
2. Understand there are different levels of anxiety.
3. Remember everyone has a unique home situation.
CLICK HERE to download the entire list and advice on how to implement!
Most people are working from home these days due to the Covid-19 Pandemic. In order to make work more efficient it’s important to follow these steps in order to be most productive.
1. Follow your standard routine.
2. Set up a special workspace.
3. Use video calls to keep in touch.
4. Use task management to keep track of progress.
5. Do not stay in the same position for too long.
6. Make sure to exercise everyday.
7. Find what helps you concentrate.
8. Look after your mental health.
The NBA suspended its season while the NCAA announced March Madness would be played in empty arenas (talk about surreal).
And, what may have been at the top of the surreal scale on any other day, a former vice-presidential candidate (Sarah Palin) sang “Baby Got Back” on “The Masked Singer.”
Of course, that surreal 24 hours has grown into an exponentially more surreal week with no end to the escalation in sight.
The questions are endless, personally and professionally. In that post, I offered some suggestions to maintain SOME level of personal grounding. I suggested we all . . .
Sit in 10 minutes of meditation
Go for a walk
Read something for pure enjoyment
Call a friend and have a nostalgic conversation (i.e., nothing about current events)
Just do something to restore a sense of sanity and control to your day
I encouraged us to all – Be safe. Be smart. Be balanced.
I feel these suggestions are still solid but, given the events of the 72 hours or so that have transpired since then, they only begin to touch on the significance of what we are experiencing. This is a much more significant health crisis than we knew even that short time ago. It seems clear we still don’t just how significant it will prove to be.
It cannot be denied; we are all being impacted personally.
But, what about professionally?
At the risk of seeming impersonal and insensitive, what about our businesses? What adjustments do we need to be making?
We see many government-imposed changes. Restaurants and bars are being closed or put on restricted operations. Schools are being closed or moved online. Gatherings of more than 10 (as of this writing – it was 50 when I started) are being canceled or postponed.
Beyond the government-imposed restrictions, many businesses that rely on “social proximity” (I know, not necessarily the right use of this phrase, but I mean the opposite of social distancing) have chosen to close on their own.
I understand the need to protect health and life at all costs, but that doesn’t stop me from worrying about the long-term business implications of these decisions. How many businesses will fail? How many employees of closed businesses will never recover financially? Again, these aren’t life and death questions (in most cases), but they’re still very real.
A business “gray” area?
And, what about businesses that are either already virtual and remote in their operations or are capable of performing at least some activities without threat to others? By maintaining some “new normal” level of business operations, do they run the risk of appearing insensitive? Or, is it maybe their responsibility to continue operations?
Before I share my thoughts, you should know that our entire business operation runs virtually and remotely. Each of our team members works individually in their own office space. We are among the “socially-distanced elite” in that regard. While this arrangement does present limitations, it has prepared us for where we are today. Over the next few days/weeks, we’ll be sharing some tips that have helped us build a successful business this rather unusual way.
Here’s my perspective and opinion.
If a behavior puts anybody else at risk, it needs to be changed. The physical health of everyone has to be our number one priority.
I believe our mental health has to be a very close second to our physical health. For me, that means maintaining daily activities that are as close to normal as possible. Sure, we may have to work from home instead of going into the office but, if that’s possible, I feel it is way healthier than not working at all.
Finally, we will come out of this and, when we do, we need businesses to be as strong as possible. That can’t be the case if we bring everything to a complete halt.
So, what will I be doing personally?
I will be aware of my physical movements and the effects they have on others.
I will be respectful of the decision others may make to more drastically curtail their business operations.
I will continue to work/live as much of an uninterrupted daily life as is responsibly possible.
I will be understanding of those who have a different opinion than mine.
Our role is to help our clients build stronger businesses, and we’re finding there are a lot of needs right now to that end. We’re helping our agencies make decisions and take actions in the best interests of their own businesses and the lives of their clients. So, our work isn’t slowing down.
We hope you aren’t offended when you see us active on LinkedIn.
We hope you aren’t shocked when you see our blog posts pop up in your inbox on Mondays and Thursdays.
We hope you don’t mind when we respond to your inquiry.
We hope you understand the spirit in which we will be working for the foreseeable future.
We hope you know how much we are thinking about you during this unprecedented time.
Above all else, we hope for your health, safety, and balance.
This week’s #WonderWomanWednesday is someone near and dear to us in NYC. Amanda Kindler was a Registered Nurse working in Oncology prior to the Covid-19 Pandemic and was part of the first Covid Unit in the NYU Hospital System. When Amanda has some downtime, which is rare, she’s sure to log in her CrossFit workout from the CrossFit Dutch Kills box in Queens, NY where she has been a member for about 2 years. We salute Amanda and all the other healthcare providers putting themselves at risk during this time to help the people of our city!
For this edition of #FeatureFriday check out our guest blog by The Jacobs Group, the leading provider of talent to the insurance industry. We greatly appreciate their keen insight to the subject matter and contributing to our blog this week, this content applies to anyone that is managing employees remotely during this time and beyond.
As the insurance industry adapts to a workforce that is primarily – if not completely – remote, many managers are finding themselves overseeing work-at-home employees for the first time. At Jacobson, many of our corporate employees and temporary staff work remotely on a regular basis. We asked a few leaders across our organization for their key insights and advice on effectively managing remote staff.
Prioritize communication.
Dave Coons, Senior Vice President: Stay engaged! Host regularly scheduled one-on-one meetings and team meetings over Skype and Zoom. Video is great because it creates a more personal connection and gives you the ability to read people’s non-verbal cues.
Salil Shenoy, Controller: My open-door policy remains the same whether we’re in the office or working remotely. Making time to be actively engaged and available is crucial. This entails scheduled and ad-hoc one-on-one and team meetings with clear agendas to ensure the time is focused and productive. Communication and trust are key! This is even more true when individuals on your team are dependent on other employees they no longer see in person. Open and honest communication helps create a collaborative and positive environment that is proactive and preventative, rather than reactive and corrective.
Set clear expectations.
Nikki St.Martin, Vice President, Marketing Communications: It is more important than ever to ensure everyone is on the same page regarding everything from work hours to deadlines and production levels. Schedule a weekly call with your team to share the department’s priorities for the week and address workflows and any challenges. Continue to provide regular feedback, both positive and constructive, so employees know if they are performing at the expected levels.
Karen Aiello, Assistant Vice President, Account Management: I’ve been doing this for almost 20 years, and it’s important to stay in constant communication. Make sure there is a good understanding of priorities, expectations and performance/quality goals.
Alison Wetmore, Assistant Marketing Manager: Coach your team for your communication style. Be sure to spell out the level of communication you expect. For example, if you want individuals to confirm they have received emails about new projects, be sure to let them know.
Focus on trust.
Kylee Lacson, Assistant Vice President, Life: It’s important to trust your employees and let them do their jobs. Micromanaging will have a negative impact on productivity. If you are seeing a dip in work product or quality, approach them from the angle of “How can I help?” versus “Why didn’t you do X?”
Tanya Rinsky, Senior Account Manager, Health: Come from a place of support, always assume positive intent and respond quickly, even if it’s just to say you’ll get back to them when you know more. When communicating by phone and body language can’t be used as a guide, it’s important to ask lots of probing questions to ensure you fully understand what the person is trying to communicate.
Recognize different work styles.
Abbe Sodikoff, Senior Vice President: For people who prefer to work alone, it can be challenging to get them engaged with the group as a whole. Finding ways for those individuals to lead a discussion or participate and contribute without feeling put on the spot can be challenging. However, taking extra time to meet those people at their comfort level is well worth it.
Judy Busby, Senior Vice President, Executive Search and Corporate Strategy: Each employee has different needs. You must adapt to each employee to maximize team contributions, company culture and professional development.
Set boundaries.
Kylee: Set boundaries around availability to help people unplug for the day. If an email isn’t urgent at 9 p.m., then use the “delay send” feature so your employees can feel comfortable setting boundaries with their time. People who are new to working at home tend to be challenged with turning off work. Small adjustments can help with that.
Leverage technology.
Beth Roekle, Senior Vice President, Talent Delivery: Leverage technology wherever you can. For instance, we use group chats, video conferencing and emails to help keep people connected. In addition, we prioritize our regularly scheduled communication as much as possible to ensure adequate opportunities to connect.
Alison: As our team has grown, we’ve needed to find ways to best manage multiple people working on different aspects of a project. Technology such as Basecamp and Trello can help track where projects stand at any given time, as well as who is responsible for each part of a project.
Connect on a personal level.
Dave: I believe that you don’t manage “people,” you manage “personalities.” What I mean by this is not all people are the same, and they have different needs when it comes to being supported and managed. It’s important to realize this and tailor the way you manage your employees using different means and techniques to get the best return on your investment.
Nikki: Small talk happens naturally in the office, in the lunchroom, passing in the hallway. When everyone is working remotely, maintaining a connection takes intentionality. Many of your employees are juggling more than they are used to in the game of life. Take a few moments at least once per week to just call (or even better, Facetime or Skype video) and see how they are really coping. Use group messaging software to say good morning, share a funny story in the afternoon or ask about employees’ plans for the weekend.
Judy: You need to make room for personal interactions, especially since people are now at home with their kids, cats and other distractions. This requires a relaxing of norms for all to feel comfortable videoconferencing. I’m learning so much about team members’ families, interests, pets and more and think it will bond us for many years to come. There’s typically so little time in the workplace to talk about these things, but it’s now integrated into everyone’s work day. As a high-performance leader, this is a great time to grab insight about someone to better lead them.
Catherine Prete, Senior Vice President, Operations: It can be easy to slip into “all business” mode when you don’t see the person. Be intentional about connecting differently in communications that don’t involve seeing your staff. For instance, start calls by asking about personal matters and express appreciation. Now that all of my staff is remote, I have learned that not only can we easily survive in this environment, we can thrive. Everyone has been diligent to keep the human connections in lots of unique ways.
About The Jacobs Group: The Jacobson Group is the leading provider of talent to the insurance industry. They offer executive search, recruiting and temporary staffing services at all levels across all industry verticals.
We know New Yorkers are resilient and are ready to push up their sleeves and help their community during times of struggle, however we are in uncharged waters. If you are looking for ways to help out during this time, the Capalino+Company team has published an excellent list to show creative ways you can help during this time! Stay Safe!
Here are ways for New Yorkers can help during this crisis:
Share the mission of Invisible Hands to provide safe, free food deliveries for NYC’s most at-risk communities facing COVID-19
Sign up for alerts from New York Cares to learn more about what city agencies and community partners are doing to help those most impacted by COVID-19
Donate to the WHYHunger Rapid Response Fund to protect food access for all people by bolstering WHY’s work with emergency food providers, small-scale farmers, and food chain workers
Secure masks, gloves, and hand sanitizer for police officers on patrol across the city through the New York City Police Foundation
Broaden your reach by contributing to The New York Community Trust NYC COVID-19 Response & Impact Fund to aid nonprofit service providers struggling with the health and economic effects of the coronavirus; the fund will give grants and loans to NYC-based nonprofits that are trying to meet the new and urgent needs that are hitting the city
Help the Robin Hood Foundation raise funds to put together a food program for their network of nonprofits to continue to serve low-income communities
Click Here to see the original article in Employee Benefit Advisor
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed by President Trump on March 27 after passing both the House and Senate earlier in the week. This $2.2 trillion stimulus package is wide-reaching and intended to provide economic relief for the individuals and businesses hit hardest by the coronavirus pandemic and the resulting financial downturn.
Within the 800-page bill, there are several important provisions affecting employers, including requirements for coverage of COVID-19 testing and treatments. There are also provisions that extend beyond the coronavirus into other areas of employer benefit designs with potential impact to group health plans beyond the current public health emergency.
1. Coverage of COVID-19 Testing and Treatment
Group health plans must cover COVID-19 screening and the related office visit without cost sharing, which includes COVID-19 tests that may not have been approved by the US Food and Drug Administration. Group health plans must cover, without cost-sharing, “qualifying coronavirus preventive services,” which are items, services and immunizations intended to prevent or mitigate COVID-19 that receive a rating of “A” or “B” from the US Preventive Services Task Force (USPSTF) or a recommendation from the CDC Advisory Committee on Immunization Practices (ACIP) with respect to the individual involved. This requirement will apply 15 business days after the recommendation is made by the USPSTF or ACIP.
2. Payment for COVID-19 Testing and Treatment
Group health plans providing COVID-19 testing must reimburse the provider in the amount of the negotiated rate, if in effect before the public health emergency began, or if not, an amount that equals the cash price as listed by the provider on a public internet website, or a negotiated rate with the provider for less than the cash price. This provision is effective upon enactment of the CARES Act (March 27, 2020) and is not retroactive.
3. Telehealth
The Act allows a high-deductible health plan with a health savings account (HSA) to cover telehealth services prior to a patient reaching the deductible, without regard to whether the services provided via telehealth relate to COVID-19. This provision is effective upon enactment and lasts through plan years beginning in 2021.
4. Over-the-counter Medical Products without a Prescription
The Act allows for account-based plans, including HSAs, flexible spending accounts and health reimbursement arrangements, to reimburse members for the purchase of over-the-counter medical products without a prescription from a physician, regardless whether the product is related to treatment of COVID-19. This reverses a restriction imposed by the Affordable Care Act. These changes are effective for amounts paid/expenses incurred after 2019 and seem to apply indefinitely.
5. Expansion of DOL Authority to Postpone Certain Deadlines
The Act amends ERISA to provide DOL the ability to postpone certain ERISA filing deadlines and provide other relief for a period of up to one year in the case of a public health emergency.
A few things were also noticeably left out of the CARES Act, including two issues many employer groups have been monitoring closely. First, besides the HSA over-the-counter provision described above, there is nothing in this legislation to address prescription drug pricing. No portions of HR 3 or any other existing drug pricing legislation were included in the CARES Act. Second, there is nothing in the package to address the larger issue of surprise billing. Like the drug pricing issue, no language from existing legislation addressing surprise billing was included in the CARES Act.
The good news is that the Act seems to have bought more time on these issues since the healthcare “extender” deadline set to expire May 22 has been changed to November via this bill. The bad news is that means drug pricing and/or surprise billing legislation will need to be addressed in a lame duck session of Congress where it’s difficult, though not impossible, to pass major bipartisan legislation.
Employer groups will continue monitoring these issues as we work through coronavirus-related legislation implementation, and seek opportunities to be included in discussions, on both COVID-19 and other health policy issues, to ensure employer perspectives continue to be heard.
As talks of reopening start happening and, as an employer, you begin to make a strategy for what this will look like, Mental Wellness should be in the forefront of your checklist.
Dave Coons, Senior Vice President: Stay engaged! Host regularly scheduled one-on-one meetings and team meetings over Skype and Zoom. Video is great because it creates a more personal connection and gives you the ability to read people’s non-verbal cues.
Set clear expectations.
Recognize different work styles.
Beth Roekle, Senior Vice President, Talent Delivery: Leverage technology wherever you can. For instance, we use group chats, video conferencing and emails to help keep people connected. In addition, we prioritize our regularly scheduled communication as much as possible to ensure adequate opportunities to connect.
Judy: You need to make room for personal interactions, especially since people are now at home with their kids, cats and other distractions. This requires a relaxing of norms for all to feel comfortable videoconferencing. I’m learning so much about team members’ families, interests, pets and more and think it will bond us for many years to come. There’s typically so little time in the workplace to talk about these things, but it’s now integrated into everyone’s work day. As a high-performance leader, this is a great time to grab insight about someone to better lead them.
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