Client Alerts, News Articles & Blog Posts

Everything you need to know about BMD and the industry.

Relief for Employers from Unemployment Filings

From the last 7 weeks, the total number of unemployment filings in the U.S. now totals 33.5 million, an unprecedented number comparable to the number of filings during the Great Depression. Although some state and federal funds are being used to supplement the unemployment funds, providing additional compensation to the unemployed, employers will be responsible for a very large portion of the total funds being doled out to employees. Specifically, employers will be responsible for repaying the state for up to 26 weeks of payments made to their unemployed employees, even those that are temporarily laid off and with plans to return. This financial responsibility will add up quickly for employers. 

There is good news for those facing large unemployment bills that will come due at the end of the year. Although state or federal legislators may eventually provide additional monetary relief to employers for unemployment liability, immediate relief is currently available to employers through the following options. 

1. Have employees return to work as soon as possible. 

If a company is permitted to reopen under state and local health orders, employees’ unemployment payments will stop once they return to work. This means that additional weeks the employees would spend on unemployment, if not reemployed, will not be charged to the employers’ accounts. 

2. Report to the state unemployment commissions if employees refuse to return to work.

If a company reopens and certain employees refuse to return to work without a valid, legal reason, employers should notify their state unemployment commission. For example, in Ohio, the Department of Job and Family Services established an online form that employers complete when employees refuse to return to work (located here). Employees are not eligible for continuing unemployment benefits if they are reoffered work at the same or similar pay and hours. Therefore, the completion of this form should have the effect of cutting off the employees’ unemployment benefits, thus preventing further liability being applied to the employers’ accounts. We also recommend, in addition to the online submission, employers notify their state unemployment commission, via a written letter, that an employee has refused to return to work under the same or similar pay and hours. 

Notably, if an employee is offered a return to work under reduced hours or pay, the employer should still notify its unemployment commission as the liability may be partially reduced in proportion to the hours/pay being offered. 

3. Appeal unemployment charges for former employees that previously quit or were fired from their job prior to the COVID-19 pandemic.

Finally, as discussed in a previous Client Alert located here, employers should be challenging all unemployment filings from former employees who quit or were terminated for just cause prior to the beginning of the COVID-19 pandemic. Under most state unemployment laws, employers can be liable for a former employee’s unemployment benefits up to a year from departure of employment. However, this liability may be removed or reduced if the employee quit or was terminated for just cause. Employers will need to go through the appeal process to challenge these unemployment filings as the state unemployment commission is likely unaware that the employee previously quit or was terminated. For this reason, employers must complete and timely respond to all requests for information, including the details surrounding the departure. Employers should include all relevant information, including resignation letters/emails or handbook provisions that have been violated leading to a termination. 

Bryan Meek is a member of Brennan, Manna & Diamond’s Labor & Employment team and is available to assist you with responding to requests for information and/or appealing unfavorable unemployment decisions. Bryan can be reached at 330.253.5586, or bmeek@bmdllc.com.

Workers’ Compensation Claims and COVID-19

Can one of my employees file a workers’ compensation claim if they claim that they contracted coronavirus at work? We get that question a lot. Yes, they can, but you should oppose any application for coverage if you receive one. Generally, the claim will not be granted unless the employee has a job that poses a special hazard or risk of exposure to the virus and the employee can prove that he or she contracted the virus at work.

Ohio State Dental Board Implements Teledentistry Rules

Ohio law defines “teledentistry” as the delivery of dental services through the use of synchronous, real-time communication and the delivery of services of a dental hygienist or expanded function dental auxiliary pursuant to a dentist’s authorization.[1] The law requires a dentist who desires to provide dental services through teledentistry to apply for a teledentistry permit from the Ohio State Dental Board (“OSDB”).[2] Pursuant to the mandate under Ohio Revised Code 4715.436, the OSDB is implementing the following teledentistry permit rules and requirements (to be set forth under Ohio Administrative Code Chapter 4715-23). These regulations, which were subject of a public hearing on February 19, 2020, are effective on May 30, 2020.

HHS Addresses Drug Manufacturer Coupons on Out-of-Pocket Limits

On May 7, 2020, the US Department of Health and Human Services (“HHS”) announced their Notice of Benefit Parameters for 2021 in which HHS addressed the application of prescription drug manufacturer copay coupons towards a patient’s out-of-pocket limit. Under this guidance, HHS will permit, but not require, plans and insurers to count direct support offered to enrollees by drug manufacturers (i.e., coupons) for specific prescription drugs toward the annual limits on cost-sharing, regardless of whether a generic equivalent is available.

Important Updates, Deadlines, and Clarifications for the HHS Provider Relief Funds

On May 20, 2020, HHS made important updates and clarifications regarding the General Distribution payments to providers. Between April 10, 2020 and April 24, 2020, HHS distributed an initial $30 billion to providers based on the provider’s 2019 Medicare fee-for-service receipts. These funds were distributed automatically and providers did not need to submit an application in order to receive these funds. The funds were originally touted as a “no strings attached” stimulus payment reserved for healthcare providers. But HHS issued a 10-page Terms and Conditions and required that providers sign an attestation confirming receipt of the funds and agreeing to the Terms and Conditions.

Reopening & Social Media: Tips for Businesses

As the country starts to reopen, businesses are under great pressure to keep employees and customers safe. Even if a business follows every reopening requirement, there will inevitably be scrutiny from within and outside the organization. And, in this world of social media, perception tends to become reality. Below are a few practical tips to avoid attracting negative press while restarting your business.