Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Families First Coronavirus Act (“FFCRA”) Under Attack

Client Alert

In response to the COVID-19 global pandemic, the Families First Coronavirus Act (“FFCRA” or “the Act”) went into effect on April 1, 2020 followed closely behind by the Department of Labor’s (“DOL”) Final Rule on the Act which, collectively, describe the obligations of employers as well as the rights of employees under the FFCRA’s paid sick time and expanded family medical leave provisions.

In response to a legal challenge to the FFCRA by the State of New York, on August 3, 2020, a judge out of the Southern District of New York (“SDNY”) issued a decision vacating certain provisions of the DOL’s regulations. The SDNY Court found the following:

  • The FFCRA’s definition of “health care provider” is “overly broad” as it encompasses employees “whose [workplace] role bears no nexus whatsoever to the provision of healthcare services;”
  • An employer’s ability to provide an employee work to complete may no longer be considered relevant in assessing eligibility for FFCRA leave;
  • Under certain circumstances, an employee may take intermittent FFCRA leave without first obtaining employer approval;
  • The FFCRA’s notice requirement — obligating an employee to submit notice of intent to take leave prior to actually taking it — is not practicable and therefore, in some instances, may be waived, allowing employees to submit notice after their leave begins.

While attacks on the legality of the FFCRA have been levied since its passage by Congress, this is the first official decision handed down by the judiciary. With that said, the SDNY decision is limited in scope as it applies only to that jurisdiction — leaving open the issue of how other courts, as well as the Department of Labor, will respond to the FFCRA challenges.

As questions, concerns and legal guidance continue to evolve with the changing times, it is essential for employers to stay informed. If you need assistance with any issues arising from the COVID-19 pandemic, please contract Jeffrey C. Miller (216.658.2323 | jcmiller@bmdllc.com) or Bryan Meek (330.253.5586 | bmeek@bmdllc.com), or any member of the Labor and Employment Team of Brennan, Manna & Diamond LLC.


Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”

2022 Healthcare Recap and 2023 Healthcare Check-Up

As the country begins to return to a new “normal” following the COVID-19 pandemic, there are many healthcare rules changing on both the federal and state levels as a result. Thus, it is important for healthcare providers and their employers to be aware of these changing rules, and any implications they may have on their practice. Look back on healthcare in 2022 and find a checklist for 2023.

Direct Support Professional Retention Payments

On December 15, the Ohio Senate and House passed House Bill 45, which authorizes the Department of Developmental Disabilities (DODD), in conjunction with the county boards of developmental disabilities, to launch their initiative to issue retention payments to Direct Support Professionals (DSPs). These retention payments will be distributed quarterly to participating home and community-based waiver providers to address the workforce crisis in the direct provider sector. Governor DeWine needs to sign the Bill to begin the payments, but he is expected to do so by the end of 2022.

Real Estate Investors Position for 2023 Opportunities

Real estate investors weathered another year in a post-pandemic world, with the year closing with yet another interest rate increase coupled with both uncertainty and heightened interest carrying into 2023. Just last Wednesday, the Federal Reserve raised its benchmark interest rate 0.50 percentage points, shifting the target range to 4.25% to 4.50%. The new level is the highest the fed funds rate has been since December 2007 and marks the seventh rate hike this year. So what does this mean to investors, brokers, lenders, and others in the real estate world? Read a few perspectives below from stakeholders familiar with our BMD clients and the markets in which they do business.