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Employment Law Pitfalls in the New Normal

Client Alert

This week the state of Ohio announced its Responsible RestartOhio plan and issued a Stay Safe Order amending to Department of Health’s prior order, designed to get people back to work and gradually reopen the state, available at https://coronavirus.ohio.gov/static/publicorders/Directors-Stay-Safe-Ohio-Order.pdf. This new order directs employers to require their employees to wear masks (with certain limited exceptions) and recommends changes to shifts, break times, and use of break rooms as a means to limit the spread of the virus. These workplace developments raise a number of potential concerns regarding wage and hour issues, reasonable accommodation, employee medical information, and off-duty conduct policies. 

  • Do employers need to compensate employees for time spent on workplace temperature checks or putting on face coverings or other protective equipment? This is a question that requires fact-specific, case-by-case analysis, but the short answer is - "yes, most likely." The key question under the federal Fair Labor Standards Act is whether or not these are considered "principal activities." Principal activities are those activities that a person is employed to perform and also activities that are "integral and indispensable" to the performance of principal activities. In the context of coronavirus, where temperature checks and face coverings have been mandated by employers or the government, such activities are most likely principal activities that must be compensated. In addition, any walking or waiting time after a principal activity should be compensated under the Department of Labor's continuous workday rule. For example, if an employer requires a temperature check and the employee then has a five-minute walk to their workstation, the time spent on the check and the walk should likely be compensated. The U.S. Supreme Court has held that time spent waiting for a principal activity to occur, such as putting on protective gear, need not be compensated, but this is also a fact-specific issue and should be carefully analyzed. 
  • Are there wage and hour risks to consider if an employer shuts down their break room or staggers break times to comply with Ohio's new Stay Safe Order? If employees must now take lunch breaks at their desks or workstations, or are taking breaks at unusual times, they are more likely to be interrupted or handle work projects during their lunch period. The FLSA and Ohio law require that an unpaid lunch break must be uninterrupted. If the lunch break is interrupted, or the employee is doing work during the lunch break, it becomes compensable. Employers should take steps to ensure that employees are still able to take unpaid breaks without interruption and prevent off-the-clock work. 
  • Must an employer accommodate an employee who declines to wear a face covering for medical reasons? The new Stay Safe Order provides that employees must wear a face covering, with a few exceptions, including when it "is not advisable for health purposes." Employers should therefore engage in an interactive process, similar to an accommodation request under the ADA, to determine if the employee should be accommodated in this manner. 
  • What precautionary steps should employers take as they regularly collect medical information from employees regarding coronavirus symptoms and body temperature? Employers should institute practices and procedures so that employees' medical information is not shared with others. Employers are permitted to obtain information regarding coronavirus symptoms or body temperature during a pandemic emergency, but the Americans with Disabilities Act still requires that it be kept confidential. Any information collected should be kept separate in a medical file and only shared to the extent necessary (for example, sharing with a supervisor or manager when there is a work restriction or accommodation or scheduling impact). 
  • Can an employer impose restrictions on its employees consistent with Ohio's social distancing guidelines and stay-at-home order? Yes, employers may take steps to encourage or require employees to abide by social distancing or stay-at-home practices. Particularly in Ohio, where a stay-at-home order is in place and the state has issued extensive guidelines and recommendations related to social distancing, employers have a reasonable basis for expecting such from their employees. For example, an employer may prohibit employees from attending social gatherings of more than 10 people and may take appropriate action if an employee violates this policy. Of course, employers should seek to communicate and implement such policies in a fair and reasonable manner, given the potential impact on employee relations and morale during a time of crisis.

For more information, please contact Russell Rendall at 216.658.2205 or rtrendall@bmdllc.com.


Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.