How the American Rescue Plan Act of 2021 Affects COBRA

Employer Responsibility Regarding Cobra The American Rescue Plan Act of 2021 affects COBRA significantly, which is something many employers need to know. Under this act, the Department of Labor (DOL) published guidance for continued COBRA coverage. In fact, employers must provide 100% of the employee’s COBRA cost from April 1, 2021 through September 30, 2021. What Is COBRA? COBRA stands for Consolidated Omnibus Budget Reconciliation Act. COBRA is a temporary insurance premium for employees that have been terminated, laid off or with reduced work hours. COBRA rules are under ERISA (Employment Retirement Income Security Act) or state and local laws that require continuation of health insurance. Private sector companies providing group health plans must offer COBRA coverage when the company terminates or reduces the hours of an employee. It does not apply to employees who voluntarily quit the job or who voluntarily reduce their own hours. Also, it does not cover workers who are already covered by Medicare or a different health plan offered by a spouse’s employer or new employer. Under normal circumstances, when employers offer COBRA, they can require the worker to pay the full cost of coverage and administrative cost, totaling 102%. Notices the Employer Must Provide Based on the American Rescue Act Employers with group health plans and group health providers must issue the following: General notification to all qualified beneficiaries who experienced involuntary termination or hours reduction between April 1, 2021 and September 30, 2021 Notification of the extended COBRA to any worker eligible for assistance from April 1, 2021 to September 30, 2021 Notice of expiration of periods and premium assistance between 15...

How Frequently Must You Pay Your Employees?

Frequency of Pay Under New York Law Frequency of pay refers to whether you pay your employees weekly, bi-weekly or monthly. New York Labor Law determines how frequently employees in different work classifications must receive pay. If you do not abide by the law, your employee has the legal right to sue you for damages. A recent case involved an employer who failed to consistently pay an employee. According to the New York Law Journal, the Appellate Division affirmed the employee’s right to take legal action against the employer. If there were a number of untimely paid wages, the case could result in significant liability for the employer. What Frequency of Pay Guidelines Must NY Employers Follow? Based on NYLL §191, employers must pay employees in different work classifications as follows: Manual workers must receive pay weekly. They cannot receive pay later than seven calendar days after the end of the week the worker earned the wages. If you own a non-profit organization, payment would be according to employment agreement terms, but no less frequently than semi-monthly. Salespersons receive commissions based on contract agreements. However, employers must pay them at least once a month and no later than the last day of the month after the month when the wages were earned. Frequency of payment differs when sales commissions are substantial or if additional compensation such as extra or incentive earnings is owed. Under these circumstances, salespersons must receive pay less frequently than once a month. Clerks or other workers must receive pay based on their employment agreement. However, they also must not receive pay less frequently than semi-monthly....

Marijuana Legalization in New York

Governor Cuomo Is Supporting the Legalization of Marijuana Marijuana legalization for recreational use appears to be on the verge of becoming law in New York State. Medical marijuana has been legal since 2014, but what would legalization for recreational use mean for New York businesses? If the legislature passes the Cannabis Regulation and Taxation Act, Governor Cuomo believes it could generate $300 million in revenue a year for New York. According to the Gothamist, the governor also sees marijuana legalization as an opportunity to create greater income for poor communities and individuals who have “paid the price” for marijuana prohibition. The legislature is expected to vote on legalizing marijuana on April 1, 2019, and if passed, marijuana could go on sale in April 2020. The new law would establish an Office of Cannabis Management, which would have oversight of recreational marijuana use for adults who are 21 and older along with overseeing hemp and medical marijuana. The office would be responsible for creating licensing procedures for growers, distributors and sellers. Currently the Retail, Wholesale and Department Store Union represents medical marijuana employees, and it appears that the recreational cannabis industry would also fall under its representation. Taxes that the law would generate include a 20 percent state tax and two percent local tax on sales from wholesalers to resellers. Taxation for growers would be by the gram. The law would give priority to minority and women-owned businesses for licenses to grow and sell cannabis. How Would the Legalization Potentially Affect Business Employers? Business owners already faced challenges that resulted from the legalization of medical marijuana. Even so, marijuana recreational...

FAQs About Lactation Break Law

What NY Employers Should Know New York City passed a law for lactation breaks that requires NYC employers to provide a private lactation room and a refrigerator where nursing mothers can store milk. The new law goes into effect on March 18, 2019. Prior to this New York City law, the Affordable Care Act of 2010 introduced a provision that required employers to allow nursing mothers to take a break for breast pumping. What businesses does the lactation break law apply to? According to the New York State Department of Labor, all public and private business in New York must provide break time so nursing mothers can pump breast milk at work. This law applies to all businesses regardless of the size or nature of the business. How long must employers provide a mother with lactation breaks? After the birth of the child, the mother can take breaks to pump breast milk for up to three years. How long is the lactation break? Employers must provide at least 20 minutes for each break. However, employees may take less time if they choose or may ask for more time if necessary. How often must the breaks occur? Employers must allow employees to take the break at least once every three hours. Employees can take these breaks immediately before or after meal breaks if they wish. For example, the employee could leave for the lactation break 20 minutes before or after the usual lunch break time. Must employers pay for lactation breaks? No. Employers do not have to pay nursing mothers for the break time. In addition, employees have the option...

Employers: What Questions Should You Avoid in a Job Interview? Illegal and Discriminatory Questions

Certain questions are taboo for employers to ask in a job interview. The most obvious ones are questions that could be regarded as discrimination. If you ask these types of questions, you could be held liable if a discrimination lawsuit is brought against you. Do not ask questions that intimate at anything to do with age, race, color, national origin or birthplace, religion, disability, genetic information, gender/sex or marital/family status/pregnancy. (EEOC) Examples of Questions to Avoid in Job Interviews It’s best to cross these types of questions or similar questions off your list and steer clear of them. Examples include: Are you biracial? Which church do you attend? What languages do you speak at home? Are you pregnant? Do you plan to have children within the next year? Do you have a disability? What medications are you currently taking? Have you filed any workers’ compensation claims? Have any of your close relatives had a heart attack or been diagnosed with a heart condition? Do mental health conditions such as bipolar disorder, depression or schizophrenia run in your family? Have you had genetic tests to determine whether you are at risk for cancer? When do you plan to retire? How old are your children? What salary did you make at your last job? Salary Related Questions The New York City Council passed a law that went into effect in 2017 that prohibited employers from asking job candidates about their salary history, compensation history and other past benefits during job interviews. Similarly, Suffolk County, New York has recently passed a law (the RISE Act) prohibiting the same questions. This law goes...

What Is the Payroll Audit Independent Determination Program?

Should You Participate in Payroll Audit Independent Determination (PAID)? The Payroll Audit Independent Determination (PAID) may be a solution for some restaurant owners to deal with wage violations. Even so, it is always wise to get a legal opinion so you can make an informed decision that protects your interests. How Does PAID Work? The incentive that PAID offers is that employers can resolve potential overtime and minimum wage violations under the FLSA without resorting to litigation. A few qualifications to participate in the program are that the employer has not been sued during the previous five years and is also not currently party to a lawsuit brought against them for FLSA violations. The PAID program encourages employers to do self-audits. If they find overtime or minimum wage violations, they can report the violations themselves and work to correct their mistakes and pay the affected employees the back wages owed. The self-audits focus on identifying potential violations, the employees affected by them, the timeframe of the violations and the amount of back wages owed. Once you have conducted the audit, you must submit the information to the Wage and Hour Division (WHD) and go through the compliance steps. The advantage of going through the steps and receiving WHD supervision and certification before paying back wages owed is that employees will have to waive their rights to pursue a private lawsuit. Challenges Restaurant Owners Face Paying a single employee back wages may not be the greatest threat that a restaurant owner faces. However, a collective lawsuit and paying many employees, plus penalties and other expenses can be daunting. Under the...