COVID-19 Resources for Workers and Businesses

COVID-19 Resources for Workers and Businesses

UPDATED 4/1/2020

With rapidly changing public health responses to the COVID-19 pandemic, there are also ever-changing responses to address issues impacting businesses and workers.  See below for General Information, Business Operations, Accessing Benefits, New Legislation & Benefits, and Taxes.

General Information

WA State:  There is a WA state government page dedicated to COVID-19:  https://coronavirus.wa.gov/. It contains the latest news as well and guidance and links to other resources for dealing with COVID-19 and its impacts, including a page for Business & Workers: https://coronavirus.wa.gov/business-workers.

WA Governor:  The WA Governor’s Office has a page dedicated to coronavirus resources. There is a Latest News section at the bottom of the page that shows any action related to the issue from new limitations/restrictions to emergency legislation.

Federal:  The U.S. government also has a dedicated page, https://www.usa.gov/coronavirus, as does the U.S. Congress, https://www.congress.gov/, which should both report on any federal legislation affecting workers and business during this time.

Business Operations

Workplace Safety:  The WA Department of Health has a page with guidance to employers for workplace safety during this time.

Stay Home, Stay Healthy Essential Business:  Governor Inslee has implemented a Stay Home, Stay Healthy order that physically closes all but essential businesses (telework is permitted). Here is a link to the description of what qualifies as essential:  https://www.coronavirus.wa.gov/whats-open-and-closed/essential-business. If you cannot determine your status after reviewing the list, there is an online form you can submit for clarification or to request inclusion. The order will be in place through at least April 6, 2020 and could be extended.

U.S. Small Business Administration: Guidance & Loan Resources:  All small business owners in all U.S. states and territories are currently eligible to apply for the SBA’s Economic Injury Disaster Loans. More information about the loan can be found here: https://www.sba.gov/funding-programs/disaster-assistance.  The SBA has also put together a list of loan resources and guidance for small business owners. The list can be found here: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

Accessing Benefits

Here are some important employment resources from Washington’s Employment Security Department (ESD) and Department of Labor & Industries (L&I):

ESD COVID-19 Scenarios and Benefits Flyer: This gives a quick snap-shot of what benefits might be available to workers (Paid Sick Leave, Unemployment Insurance, Paid Family & Medical Leave, or Industrial Insurance/worker’s compensation) for different situations (e.g. if quarantined or if an employer needs to reduce hours).

ESD Information on Unemployment and Paid Family & Medical Leave Benefits: This answers questions about when workers might qualify for unemployment benefits and what situations might trigger entitlement to Paid Family & Medical Leave. Currently, this might include SharedWork, Standby or Partial Employment benefits which were emergently updated to allow some wage replacement while an employer has temporarily shut down or reduced hours because of COVID-19, without requiring the worker to look for new employment. The site also provides information on applying for benefits.

L&I Guide on COVID-19:  This relates to use of paid sick leave (which all nonexempt workers accrue and can be used when a public official orders closure of a workplace or the school/child care center of a worker for COVID-19), industrial insurance/workers’ compensation (which may cover diseases acquired on-the-job and was expanded by emergency rule to cover health care workers and first responders who are quarantined following possible exposure to COVID-19), and workplace safety. This page also has links to more specific information about the different benefits and supports available through L&I, as well as how to apply for benefits.

The U.S. Department of Labor also has a page dedicated to coronavirus resources.

New Legislation & Benefits

Paid Leave and Diagnostic Testing:  The Families First Coronavirus Response Act (FFCRA) was signed into law 3/18/2020 becoming Public Law No. 116-127. This Act:

• Provides paid sick leave to workers.
  • Up to 80 hours of paid sick leave in additional to other employer-paid or state-mandated paid sick leave (pro-rated for part-time workers). For employers with fewer than 500 employees.
  • For the following reasons:
    • Employees is subject to federal, state or local quarantine or isolation order, or caring for someone subject to the same;
    • Employees advised by health care provider to self-quarantine due to coronavirus concerns, or is caring for someone subject to the same;
    • Employee has symptoms of the virus and is seeking testing;
    • Employee is caring for child if the school/place of child care has been closed / is unavailable due to COVID-19; or
    • Employee is experiencing any other substantially similar condition specified by the Department of Health & Human Services.
  • caring for self/because of self-quarantine, sick time is to be paid at the employee’s normal wage up to $511/day and $5,110 total per individual. If caring for others affected (including for school/child care closure), employees are entitled to at least two-thirds of their normal wage up to $200/day and $2,000 total per person.
  • The Department of Labor may adjust eligibility rules for health care providers and emergency responders, and well as for businesses with fewer than 50 employees. There may be additional rules/limitations imposed.

• Expands federal FMLA:
  • To allow an employee who has worked 30 calendar days for an employer with fewer than 500 employees to get up to 12 weeks of leave if an employee is unable to work due to needing to care for a child who school or place of care has been closed because of COVID-19.
  • The first 2 weeks can be unpaid or employees can use other available paid leave. The next 10 weeks are paid at least two-thirds of the employee’s regular rate. Leave is capped at $200/day and $10,000 total per individual.
  • The Department of Labor may adjust eligibility rules for health care providers and emergency responders, and well as for businesses with fewer than 50 employees. There may be additional rules/limitations imposed.
• Employers will be entitled to a 100% refundable tax credit for providing benefits under the Act (taken against the quarterly Social Security tax payment).
• Provides free coronavirus testing through all employer-sponsored group health plans. Including the cost of the necessary visit and lab charges. Washington already took steps to ensure free coverage for testing and medically-necessary treatment for COIVD-19, including waiver of copays and deductibles. See the DOH Testing for COVID-19 page (click on Will insurance cover testing and treatment for COVID-19?), and the HCA COVID-19 page.
• The U.S. Department of Labor has posted FAQs about the new legislation and will be issuing rules regarding the same (which hopefully will be consistent with their FAQs): https://www.dol.gov/agencies/whd/pandemic/ffcra-questions.

• There are other health and financial responses to the COVID-10 outbreak included: https://www.congress.gov/bill/116th-congress/house-bill/6201.

Stimulus Act:  The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020 becoming Public Law No. 116-136. The CARES Act provides direct payments or grants/loans to individuals, businesses and hospitals, including

• $1,200 to individuals making $75,000 or less ($150,000 or less for joint return; $112,500 or less for head of household) and $500 for each child. The payments reduce/phase out by 5% per dollar ($5 for every $100 dollars) and completely phase out to zero rebate for individuals making $99,000 ($198,000 for joint return with no children; $146,500 for head of household with one child). See the IRS page on point.
• $349 billion loan program for businesses, including 501(c)(3) non-profits and physician practices (Paycheck Protection Program). There is loan forgiveness if certain employee retention measures are taken. See the U.S. Small Business Administration entry above under Business Operations and the S. Treasury page on point.
• $500 billion for businesses, state, and municipalities (up to $46 billion for passenger air carriers, air cargo carriers, and businesses important to national security). This will be managed by the Treasury Secretary as well.
• $130 billion for medical and hospital industries, including for supplies, drugs and devices.
• Expands Medicare telehealth services, including for non-COVID-19 services.
• Expands unemployment insurance eligibility and adds an additional $600 per week to payments.
• Allows an above-the-line tax deduction for charitable contributions of up to $300 beginning tax year 2020. See Taxes below.

Amongst other items.

Taxes

Tax Relief:  The Internal Revenue Service also set up a Coronavirus Tax Relief page, which provides the latest tax information related to the coronavirus. The IRS recently issued a Treasury News Release announcing that tax payments due on April 15, 2020 will be deferred until July 15, 2020, without penalties or interest. Treasury Secretary Mnuchin also announced the decision to defer the tax filing deadline from April 15, 2020 to July 15, 2020 through Twitter, however an official Treasury News Release has not been released when this post was updated.

Tax Credits for Paid Leave: Under the FFCRA employers can get a 100% refundable tax credit for providing benefits under the Act. Be sure to retain records supporting the credit (e.g. showing reason for leave, leave time take, payments for leave time, etc.; see the DOL FAQ page and check with your tax professional).

Charitable Deductions:  Under the CARES Act and beginning with tax year 2020, taxpayers can take up to a $300 deduction for charitable contributions. This is an above-the-line deduction so a subtraction from gross income, and can be taken in addition to the Standard Deduction.

Stay Healthy!