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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.


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.

Corporate Transparency Act Ruling from the U.S. Supreme Court

The U.S. Supreme Court recently ruled on the enforceability of the Corporate Transparency Act (CTA), lifting an injunction previously imposed by the Fifth Circuit. However, a separate nationwide injunction remains in effect, meaning businesses are still not required to comply with the CTA’s reporting requirements. FinCEN continues to accept voluntary reporting while enforcement remains paused.

Lead Paint Contamination and Resources for Ohio Landlords

Children are exposed to lead-based paint, which was used in most homes until it was banned in the US in 1978 and “can severely damage the brain and central nervous system causing coma, convulsions and even death.” Property owners and landlords should educate themselves on regulations and resources to mitigate their own liability.