In a statement released on December 29, 2020, President-elect Biden announced his plans to combat COVID-19 once he takes office. His COVID-19 relief efforts will include, among other proposals, expanding the role of OSHA, expanding FFCRA worker benefits, targeting unemployment and minimum wage, and providing financial support for state and local governments.
The proposal, which would cost an estimated $1.9 trillion, includes an additional stimulus payment of $1,400 to individuals.
Biden announced that he will ask OSHA to reconsider whether to establish a “rigorous” Emergency Temporary Standard for COVID-19. Beyond the emergency standard, OSHA may also seek to create an Infectious Disease Standard which may require written infection control plans for employers and a medical removal protection benefit paid to employees that cannot work due to infection. Biden also plans to increase the number of OSHA inspectors to better address the most dangerous workplace hazards and motivate Congress to include public employees under OSHA’s workplace standards.
Renewing worker benefits provided under the Families First Coronavirus Response Act is also a focus of Biden’s proposal. He seeks to provide over 14 weeks of paid sick and family medical leave for workers exposed or potentially exposed to COVID-19 and parents with additional caregiving obligations for children whose school or care centers are closed due to COVID-19. The plan would eliminate the exemption for employers with more than 500 employees or fewer than 50 employees. Also, employers with fewer than 500 employees would be eligible for a refundable tax credit for the full cost of providing emergency paid leave. State and local governments will also be reimbursed for the cost of the leave. This proposed extension would expire on September 30, 2021.
To address COVID-19 related joblessness, Biden is calling on Congress to expand unemployment insurance benefits to provide a $400 per-week supplement to the existing state benefits. Relatedly, Biden’s plan will fully fund short-time compensation programs, also known as work sharing programs, which are currently state-funded. Work sharing programs compensate employees for hours that are reduced by their employers with the goal of decreasing employee turnover. Ohio currently has such a program, called Shared Work Ohio, that was used by many employers earlier in the pandemic. The plan would extend unemployment benefits until September 30, 2021.
Biden also seeks an increase to the federal minimum wage to $15 per hour, more than doubling the wages of an estimated 392,000 workers earning the federal minimum wage of $7.25 per hour. In 2021, the Ohio minimum wage is $8.80 per hour.
The proposal allocates $350 billion for aid to state and local governments. The proposal also seeks to invest $50 billion to expand COVID-19 testing, lab capacity, and support for schools and local governments along with an additional $30 billion to ensure sufficient supplies/protective gear and reimburse state and local governments for critical emergency response resources.
These are just a few of the major proposals impacting employers. There are numerous other parts of the plan, including extending the Supplemental Nutrition Assistance Program (SNAP), providing relief to avoid evictions, expanding child care and preserving/expanding health insurance.
Obviously, these proposals are at the beginning stages but there is reason to believe this bill will move quickly. Employers need to be prepared for these and other potential changes. Fishel Downey Albrecht Riepenhoff, LLP (FDAR) will continue to monitor these developments and keep you up to date.
FDAR represents employers throughout the State of Ohio on all matters relating to labor and employment law. The attorneys at FDAR have been assisting employers with the various challenges presented by the COVID-19 pandemic. If you have any questions, you can reach us at 614-221-1216 or at info@fisheldowney.com.