Provided by:  Jennifer Kirschenbaum, Esq.
March 27, 2020
 
Question:
 
Jennifer, 
 
We're mostly closed.  I have a few scheduled post-op and emergency visits scheduled for tomorrow.  I anticipate more of the same next week, perhaps going in 1-2 days next week.  What am I supposed to do for my staff - I have 8 employees.  
 
Any advice is appreciated. 
 
Thank you, Dr. P

Answer:

Everyone's situation is just a bit different.  The employees have different arrangements - some have contracts, some are at will, some are 1099s, some have annualized PTO, some have accrual, some have no PTO.  Some have had COVID-19 already, and some are on leave now.  Some have children home from school and may seek to go out on benefit.  We need to speak so I know your specific circumstances for me to properly advise. 

That being said, here are some of what is required and available to Employers to date, with the DISCLAIMER that the federal stimulus, phase 3, the CARES Act, is not law yet, and is certainly subject to language changes, and the below is provided in summary form (for simplicity sake) and subject to qualifications and modification -  
  • NYS requires 5 days of PTO to COVID afflicted employees (quarantine or isolated)
  • As of April 2nd - Federal Law will require anyone with more than 10 employees and Net Income of more than $1mil, to pay at least 80 hours of PTO to COVID afflicted employees (quarantine or isolated), and 80 hours at 2/3 pay if an employee is caring for someone else
  • As of April 2nd - Federal Law will require any employer with more than 10 employees and Net Income of more than $1mil to pay not more than $200 per day for any employee out caring for a child (anyone under 18) for up to 12 weeks
  • CARES Act has a construct for an overhead replacement Loan construct, with the amounts used for employee salary (paying employees up to an annualized salary of $100,000 for a period of 4 months - so capped at $33,333 per employee) to be forgivable, interest deferred for at least 6 months, interest capped at 4%, and no prepayment penalty.  Each individual business can get an amount equal to its overhead, capped at $10mil  (APPROVAL, AVAILABILITY AND DETAILS PENDING)
  • Includes language that employers can rehire anyone previously fired during COVID-19 Pandemic and qualify
  • Email Stacy Spector, Esq. to schedule a consult regarding COVID-19 CARES Act Loan Qualification (final details will be available next week, but we can schedule a time to discuss)
  • CARES Act supplements Unemployment Insurance by adding $600 per week to the State benefit for each employee on Unemployment.  The State will administer this program and send the extra $600 out per week employees on unemployment 
What the above summary details are the vehicles available and considerations an employer must take into account when deciding the path forward.  We know you may need staff during this time for scheduling, billing, assistant services, etc., and such need may be on a part-time basis.  The decisions for one practice do not necessarily fit another.  If you are seeing emergency visits now, please spend time asap solidifying your sterilization protocols.  The first place to look is the CDC recommended protocol, and also please consult your specialty society.  

To set your plan for your practice, please email Kathleen to set a consult time.  

COVID-19 Resources
CLICK here for K&K's COVID-19 Legal Resource Center 

Available K&K Webinars on COVID-19 Related Legal Issues
  • Ophthalmology Specific - Essential Services, State v. Federal PTO, Preview of CARES Act (Forgivable Loan Program, etc), Terminating Employees and Panel discussion - https://youtu.be/Bda9qvddlaE 
  • Dental Specific - Essential Services, State v. Federal PTO Requirements, Business Misc., Terminating Employees, FAQ - https://youtu.be/CB3z3j9Z-9E