Navigating the American Rescue Plan’s Employment-Related Provisions

On March 12, 2021, the American Rescue Plan Act of 2021 (ARP) was signed into law, providing an estimated $1.9 trillion stimulus package to address the ongoing COVID-19 pandemic. Some of the ARP’s key provisions include a number of employment-related sections that build upon prior legislation to create a scaffold of employer obligations and worker entitlements arising from the pandemic’s impact on the U.S. economy.

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D.C. Signs Broad Ban on Noncompetes and Anti-Moonlighting Policies

With the issuance of the D.C. Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), the District joins the growing list of jurisdictions subjecting noncompetes to intense scrutiny. D.C.’s Act goes much further though, and once in effect will be one of the broadest limitations on such agreements in the country. While the Act’s precise effective date remains unclear, employers should begin reviewing their existing policies and form agreements now to ensure compliance with the sweeping prohibitions.

For the full alert, visit the Faegre Drinker website.

Pennsylvania and Philadelphia Introduce New Restrictions in Response to Rising COVID-19 Infections

Pennsylvania

On November 17, 2020, Pennsylvania Health Secretary Dr. Rachel Levine issued two new orders in response to rising levels of COVID-19 in the Commonwealth. These orders (1) place certain restrictions on individuals traveling into Pennsylvania, and (2) provide increased and more detailed requirements related to the use of face coverings in the Commonwealth.

The travel order requires that all travelers entering Pennsylvania from other countries and states, whether a returning resident or a visitor, must have a negative COVID-19 test within 72 hours prior to entering the Commonwealth. If the traveler cannot obtain a negative COVID-19 test, he or she must quarantine for 14 days upon his or her arrival in Pennsylvania or until he or she obtains a negative COVID-19 test result, whichever is earlier. The travel order takes effect on November 20, 2020. Importantly, this order does not apply to individuals who are travelling to or from Pennsylvania for work or medical reasons.

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Philadelphia Expands Paid Sick Leave During COVID-19

On September 17, 2020, Philadelphia Mayor Jim Kenney signed the Public Health Emergency Leave (PHEL) bill. The PHEL amends Chapter 9-4100 of the Philadelphia Code to create additional sick leave protections for Philadelphia employees during a public health emergency — specifically COVID-19.

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Pennsylvania Federal Judge Strikes Down Key Provisions in Governor Wolf’s COVID-19 Orders

In a decision issued on September 14, 2020, U.S. District Court Judge William S. Stickman IV ruled that certain restrictions ordered by Pennsylvania Governor Tom Wolf to slow the spread of COVID-19 were unconstitutional. Judge Stickman’s decision comes after several other Pennsylvania courts upheld the restrictions as being within Wolf’s authority and courts in other states had upheld similar types of orders.

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The Lost Wage Assistance Program Provides Relief After the CARES Act $600 Weekly Benefit Expired

On August 8, 2020, President Trump authorized the creation of the Lost Wage Assistance (LWA) program to provide lost wage assistance to unemployed individuals as a result of COVID-19. The LWA is intended to provide additional unemployment assistance after the Coronavirus Aid, Relief and Economic Security (CARES) Act’s $600 per week supplement expired on July 31, 2020. Under the LWA program, eligible claimants may receive $300 or $400 in supplemental benefits.

The Federal Emergency Management Agency (FEMA) will provide grants to participating states, territories and the District of Columbia for lost wage assistance. States may provide eligible claimants $400 per week, with a $300 federal contribution, in addition to an individual’s regular weekly unemployment benefit (UI) amount. The benefit is funded using 75% from the Disaster Relief Fund administered by FEMA and the remaining 25% through state unemployment insurance funding.

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