May 2021 Stay Current Newsletter

Breaking News: California’s Response to Mask Mandates

On Thursday, May 13, the Centers for Disease Control and Prevention (CDC) released new guidance regarding masks. The CDC has stated that masks and social distancing are no longer required for fully vaccinated people. The caveat to this is the guidance that people must still follow state, local, tribal or territorial rules and regulations. This includes local business and workplace guidance. What does this mean for California employers?  While the California Department of Public Health released state guidance on May 3, the Cal/OSHA Emergency Temporary Standard (ETS) is still the reigning regulation for California employers at this time. There have been no changes (yet) to this standard. This means that employees, regardless of vaccination status, should continue to wear masks in the workplace, except if they are in a contained office with the door closed. The full ETS guidance can be found here.  California state officials released new proposed guidance and updates to the ETS on May 7, 2021. These proposed updates were supposed to be put to a vote today, May 20. We have just learned that the vote has been postponed. There is not a new date at this time. HRDR is continuing to monitor these changes and will keep you updated as new information is released.

Update - COBRA Subsidy Under ARPA

The Department of Labor is continuing to release new information and guidance about the COBRA subsidy under the American Rescue Plan Act (ARPA). Notice 2021-31 was issued by the IRS on May 18, 2021 and discusses the background of the subsidy as well as an 86 question FAQ resource.  The additional clarifications of the FAQ’s include:  The subsidy is available for extended periods of COBRA coverage between April 1, 2021 to September 30, 2021 on the basis of disability, a secondary qualifying event, or an extension of a state COBRA program. Health Reimbursement Accounts (HRA), dental-only and vision-only plans are covered. The definition of involuntary termination was clarified to include constructive discharge and termination for cause. However, gross misconduct would not qualify.

California’s “Right to Recall” is Effective Now!

On April 16, 2021, Governor Gavin Newson signed into law Senate Bill 93, requiring specific industries to recall laid off employees on the basis of seniority. This bill is set to expire December 31, 2024. Does this bill apply to your industry? Under SB 93, covered employers include: Hotels Private Clubs Event Centers Airport Hospitality Operations Airport Service Providers Janitorial, building maintenance and security services provided to office, retail and other commercial buildings Definition of “laid off employee" For the purposes of SB 93, a laid off employee would be required to have been employed by the covered employer for 6 months or more in the 12 months preceding January 1, 2020. To be eligible under SB 93, the former employee will have been most recently laid off due to a reason related to the COVID-19 pandemic and would have worked in the same or similar position at the time of separation. Order of Recall Prior to SB 93, employers were able to choose whether they would like to recall individual former employees. Covered employers no longer have the ability to choose who is recalled, so long as the former employees are eligible as outlined above. When a position becomes available, the covered employer must offer the position to former employees in the order of seniority. Former employees must be given at least five (5) business days to accept or decline the offer. Conditional offers may be made to multiple employees, with the final decision based on seniority of those accepting.  Several local governments in California have previously adopted “Right to Recall” laws. In cities and counties with local ordinances, the law that affords greater rights to the employee will be enforced.

HSA Limits for 2022 Released by the IRS

Adjustments have been made to the maximum contribution to health savings accounts (HSA) for 2022. These amounts are typically adjustments on an annual basis based on inflation.  For the calendar year 2022, the contribution limits are:  • $3,650 for an individual with self-only overage under a high deductible health plan. This amount is up from $3,600 in 2021. • $7,300 for an individual with family coverage under a high deductible health plan. This amount is up from $7,200 in 2021.  A high deductible health plan is a health plan with an annual deductible of no less than $1,400 for self-coverage or $2,800 for family. The total out of pocket annual expense cannot exceed $7,050 or self-coverage or $14,100 for family coverage.  The full IRS announcement can be found here.

EEO-1 Reporting Deadline is July 19, 2021

The portal for private-sector employers to submit equal employment opportunity (EEO-1) workforce data from 2019 and 2020 is open. The portal to manually enter your employee data opened on April 26, 2021 and the portal for uploading your data opens on May, 24, 2021. The deadline for submitting 2019 and 2020 EEO-1 data, regardless of what method you select, is July 19, 2021. This data collection is typically due annually by March 31 but was delayed due to the coronavirus pandemic. Mandated under Title VII of the Civil Rights Act, the EEO-1 Report is an annual survey that requires certain employers to submit information about their workforces by race or ethnicity, gender and job category. In general, a private-sector employer is subject to EEO-1 reporting if it has 100 or more employees or is a federal contractor with 50 or more employees and a contract of $50,000 or more. Employers that are subject to EEO-1 reporting requirements should begin this process now, as two years of data is required.

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