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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OFCCP Publishes the 2020 Corporate Scheduling Announcement List for Upcoming Federal Contractor Audits

Applicable federal contractors should immediately review the 2020 Corporate Scheduling Announcement List (CSAL), released by the Office of Federal Contract Compliance Programs (OFCCP), to see if they have been selected for a future audit.

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Revised DOL FFCRA Rules Narrow Health Care Provider Exemption, Ease Advance Notice Requirements

The Department of Labor (DOL) issued revisions to its Families First Coronavirus Response Act (FFCRA) paid leave rules on Friday, in response to a New York federal court ruling that struck down portions of the original rule issued in April. FFCRA, enacted by Congress in March as a stimulus measure, provides eligible workers for up to two weeks of paid leave, subject to caps, for certain coronavirus-related absences, and up to an additional 10 weeks of paid leave to care for children who are at home due to school or day care closures. The rule updates are scheduled to go into effect September 16.

For the full alert, visit the Faegre Drinker website.

California Leads the Way for Pay Data Collection and Reporting

With the Equal Employment Opportunity Commission’s (EEOC) announcement that it would abandon current efforts to collect the controversial Component 2 pay data, California has taken the first step in filling the void left behind by seeking to enact a state law requirement to collect employee compensation.

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Payroll Tax Deferral Update: Treasury Guidance Answers Certain Questions and Raises Others Only Days Before Start of Implementation

Late in the afternoon of August 28, 2020, the Internal Revenue Service (IRS) issued Notice 2020-65 (the Notice) permitting the deferral of employers’ obligation to withhold and deposit with the IRS the employee portion of certain social security (and related railroad retirement) taxes imposed under Sections 3101(a) and 3201(a) (FICA Withholding Taxes) of the U.S. Internal Revenue Code of 1986, as amended (the Code). The Notice follows President Trump’s August 8, 2020, executive memorandum (the Memo) directing the IRS to issue such guidance, and the deferral period begins on September 1. While the Notice specifies how FICA Withholding Tax deferral is to be effected and how deferred amounts are to be collected, a number of significant questions remain unanswered.

For the full alert, visit the Faegre Drinker website.

As Fall Approaches, WARN Act Lawsuits Likely to Heat Up

The global COVID-19 pandemic continues to impact businesses with no clear end in sight. While the prospect of a functioning vaccine may have a while to go, a spike in Worker Adjustment and Retraining Notification (WARN) Act litigation may be on the horizon. Furloughs and workforce reductions have been prevalent since mid-March, leaving millions of employees without jobs or on extended leaves while they wait (and hope) to be recalled to work. While only about a dozen WARN Act lawsuits have been filed to date, as layoffs extend beyond six months, new workforce reductions occur, and more plaintiffs’ attorneys shift their attention to WARN Act claims, the remainder of 2020 may become a hurricane season of sorts as WARN Act litigation could flood the courts. And as the days and weeks go by, an employer’s ability to successfully assert the “unforeseeable business circumstances” defense to providing less than 60 days’ notice of a “mass layoff” or “plant closing” has diminished and will only become more challenging for employers to assert.

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