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CDC Announces Fully Vaccinated People May Gather without Masks or Distancing


March 8, 2021

Darrell ClayMarch 8, 2021

On Monday, March 8, 2021, the Centers for Disease Control and Prevention (CDC) announced that those who are fully vaccinated against COVID-19 may gather indoors with other individuals who are “fully vaccinated” without wearing masks or using physical distancing. The agency’s interim public health recommendations also state that persons who are fully vaccinated may visit indoors with unvaccinated people from a single other household who are at low risk for severe disease. The updated guidelines further clarify that fully vaccinated individuals no longer need to quarantine or test for COVID-19 if they’ve been exposed, unless they are showing signs of symptoms.

Officials say an individual is considered “fully vaccinated” two weeks after receiving the last required dose of vaccine.

Importantly, the CDC recommends that vaccinated people continue to wear a mask and social distance in public settings, while also avoiding medium and large sized in-person gatherings. At this time, the agency has not released updated travel guidelines for those who have been vaccinated.

The latest announcement issued by the CDC is introduced in an effort to clear up confusion, as some states have begun to roll back coronavirus safety measures despite warnings from health experts.

Walter | Haverfield attorneys will continue to monitor health recommendations issued by the CDC and inform you of any updates. If you have questions, please reach out to us here.

Darrell A. Clay is a partner at Walter | Haverfield who focuses his practice on labor and employment and litigation. He can be reached at dclay@walterhav.com or at 216.928.2896.

 

Changes to Paycheck Protection Program Specifically Impacting Small Businesses

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March 5, 2021

March 5, 2021

Changes to the Paycheck Protection Program (the “PPP”) were announced on February 22, 2021 that specifically impact small businesses with fewer than 20 employees.  These changes were designed to prioritize loans to these specific small businesses.  According to the Small Business Association (the “SBA”), 98% of small businesses employ less than 20 employees.  But, only 45% of small businesses with less than 20 employees have received PPP loans.

One of the biggest changes announced is the implementation of a two-week exclusive application period during which only small businesses with less than 20 employees can apply for PPP loans.  This exclusive application period began on February 24, 2021, and will run through March 9, 2021.  The current PPP application period for all applicants will continue from March 10, 2021 through March 31, 2021.

While the exclusive application period began on February 24, 2021, changes to PPP eligibility were also announced without a specific effective date, with the intention that they would go into effect during the first week of March, 2021.  On March 3, 2021, the SBA released its interim final rule titled Business Loan Program Temporary Changes; Paycheck Protection Program — Revisions to Loan Amount Calculation and Eligibility.  With the release of this interim final rule, the additional PPP eligibility changes have become effective immediately on March 3, 2021.

One important change included in the interim final rule is a revision to the PPP loan calculation formula for sole proprietors, independent contractors, and self-employed individuals.  Previously, PPP loan amounts for these individuals were based upon the net profit reported on annual tax returns, which prevented unprofitable individuals from receiving a PPP loan.  Under the new calculation formula, PPP loan amounts can be based on an individual’s gross income.

Additionally, other changes remove prior restrictions on PPP loan eligibility.  The restrictions preventing a small business owner with: (i) a past non-fraud felony conviction; or (ii) a delinquent or defaulted federal student loan from obtaining a PPP loan have been eliminated. Previously, a business was ineligible for a PPP loan if at least 20% of its ownership is held by an individual who: (i) has an arrest or conviction for a felony related to financial assistance fraud within the previous five years; (ii) has any other felony within the previous year; or (iii) is currently delinquent or has defaulted within the last seven years on any federal debt, including a student loan. The updated eligibility guidelines now only prevent a business from obtaining a PPP loan if at least 20% of its ownership is held by an individual who is: (i) presently incarcerated; or (ii) for any felony, presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or (iii) has been convicted of, pleaded guilty or nolo contendere to, or commenced any form of parole or probation (including probation before judgment) for a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years.

It is important to note that while the two-week exclusive application period began on February 24, 2021, the changes noted above did not go into effect until March 3, 2021. PPP loan applications are determined based upon the rules in effect when the PPP loan application is submitted.  Thus, only PPP loan applications submitted after the release of the SBA’s interim final rule on March 3, 2021 will be able to take advantage of the changes to eligibility.

Kari Heinze is an associate in Walter | Haverfield’s Columbus office. She focuses her practice on business services within the healthcare and dental practice arena. Kari can be reached at kheinze@walterhav.com or at 614-246-2266.  

Vince Nardone is Partner-in-Charge of Walter | Haverfield’s Columbus office. He serves as a business advisor to owners and executives of closely-held businesses, counseling them on business planning, tax planning and controversy, cash-flow analysis, succession planning, and legal issues that may arise in business operations. Vince can be reached at 614-246-2264 or vnardone@walterhav.com.

Property Tax Disputes Are Expected to Proliferate

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March 2, 2021

Peter ZawadskiJames McWeenyMarch 2, 2021 

COVID-19 provides the perfect excuse for commercial real estate owners to challenge their property values this year.  Property owners will assert that, because revenue is down across the board, their property values should be lower as well.  But as we know, that is not necessarily the case, especially given lower interest rates driving an uptick in real estate sales.

It is important to remember that ad valorem tax complaint filings for this year should focus on the property’s value as of January 1, 2020, which was long before a global pandemic was on anyone’s radar.  So COVID-19 really should not factor into a Board of Revision (BOR) decision.  Nevertheless, that won’t prevent property owners from trying to catch a tax break.

School districts can counter these complaints by getting directly involved in defending against them.  Counsel for school districts can appear at \BOR hearings to call on the BOR to only consider reliable evidence to substantiate a request to decrease property values.  Districts can also offset potential losses by filing complaints to increase property values based on recent property sales. Taking a more aggressive strategy this year is worth considering, particularly for those school districts facing a revenue shortfall from a decline in state sales tax collections.

Complaints must be filed by March 31st and counter-complaints in response must be filed shortly thereafter.  If a deadline is overlooked, a school district may lose its chance to participate in the proceedings or challenge the property owner.  If you have interest in participating in this process or have questions about it, be sure to contact your legal counsel in short order.

Peter Zawadski is a partner at Walter | Haverfield who focuses his practice on education law as well as labor and employment matters. He can be reached at pzawadski@walterhav.com or at 216-928-2920.

James McWeeney is a partner at Walter | Haverfield who focuses his practice on education lawlabor and employment and litigation. He can be reached at jmcweeney@walterhav.com or at 216-928-2959.

New and Temporary Changes to the PPP Loan for Small Businesses


February 26, 2021

February 26, 2021

The Biden Administration recently announced changes to the CARES Act’s paycheck protection program. The paycheck protection program offers forgivable, low-interest loans to businesses to help meet payroll obligations and keep their employees employed.

On February 22, 2021, President Biden announced a two-week window during which only small businesses with fewer than 20 employees can apply for loans. The two-week period began February 24, 2021, and will end on March 9, 2021. This window is a great opportunity for the smallest of small businesses to get the necessary funds to keep their employees on the job.

Other changes to the program include measures to increase racial equity in paycheck protection program lending. These changes are aimed at helping sole proprietors and independent contractors by setting aside at least $1 billion.

Small businesses with cash-flow needs and fewer than 20 employees should consider applying for a paycheck protection program loan during the two-week window. We encourage you to contact the attorneys at Walter | Haverfield to discuss all of your PPP loan program options.

Mike Sorice is an associate in the Columbus, Ohio office of Walter | Haverfield. He assists closely-held businesses with business succession planning, mergers and acquisitions, and tax planning. Mike can be reached at 614-246-2262 or msorice@walterhav.com.

CARES Act Employee Retention Credit – Defining Qualified 2020 and 2021 Paid Wages

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February 22, 2021

February 22, 2021

In response to the economic downturn at the start of the coronavirus pandemic, Congress passed an employee retention credit under Section 2301 of the CARES Act. The employee retention credit is a refundable tax credit for qualified wages paid from March 13, 2020, through June 30, 2021, by eligible employers. But, different rules apply to credits for qualified wages paid in 2020 and qualified wages paid in 2021.

The 2020 Employee Retention Credit

For wages paid in 2020, the credit amount is 50% of qualified wages, taking into account up to $10,000 of qualified wages, yielding a maximum credit of $5,000 per employee. The wages eligible for the credit depend on an employer’s average number of full-time employees in 2019. Under the credit, an eligible employer with more than 100 full-time employees can only take into account the wages paid to the employees who were not providing services during the period the employer is eligible for the credit. But, employers with 100 or fewer full-time employees can take all wages paid into account.

In this previous client alert, we discussed the definition of qualifying wages for the 2020 Employee Retention Credit and how the IRS guidance on the definition differs from the interpretation of the Joint Committee on Taxation. We also contacted an attorney at the Service Chief Counsel Office to discuss the employee retention credit. The Service had released the guidance before the Joint Committee on Taxation released its interpretation, and it recognized that the Service’s position in the guidance was more favorable to taxpayers.

Because the Joint Committee on Taxation and the Service have different interpretations of the 100-employee limit under the employee retention credit, there is a concern that the Service could change its mind to include full-time equivalents in the 100-employee limit. But, there is a reasonable argument that full-time employees do not include full-time equivalents for purposes of the employee retention credit’s 100 employee limit. And, an attorney in the Chief Counsel Office believes that the Service will follow the position the Service took in the FAQs.

Wages Paid in 2021

For wages paid in 2021, the credit amount is 70% of qualified wages, taking into account up to $10,000 of qualified wages per quarter, yielding a maximum credit of $14,000 per employee. And, an eligible employer with fewer than 500 full-time employees can take into account all wages paid during the period the employer is eligible for the credit. See here.

For an employer to be eligible for the employee retention credit, the employer must have been fully or partially suspended during the calendar quarter due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings due to COVID-19. If an employer’s workplace is closed by a governmental order for certain purposes—but the employer’s workplace may remain open for other purposes, or the employer is able to continue certain operations remotely—then the employer’s operations would be considered to be partially suspended. See here. But, if all of an employer’s business operations may continue—even if subject to a modification—such a modification of operations is not considered to be a partial suspension of business operations, unless the modification has more than a nominal effect on the business operations under the facts and circumstances.

Under the employee retention credit for 2021, an eligible employer with fewer than 500 full-time employees can take into account all wages paid during the partial suspension.

Mike Sorice is an associate in the Columbus, Ohio office of Walter | Haverfield. He assists closely-held businesses with business succession planning, mergers and acquisitions, and tax planning. Mike can be reached at 614-246-2262 or msorice@walterhav.com

Vince Nardone is Partner-in-Charge of Walter | Haverfield’s Columbus office. He serves as a business advisor to owners and executives of closely-held businesses, counseling them on business planning, tax planning and controversy, cash-flow analysis, succession planning, and legal issues that may arise in business operations. Vince can be reached at 614-246-2264 or vnardone@walterhav.com.

CDC Urges Schools to Open for In-Person Learning Safely and Soon

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February 18, 2021

Christina PeerPeter ZawadskiFebruary 18, 2021

Stressing the importance of in-person learning, The Centers for Disease Control and Prevention (CDC) recently released guidance to open and operate K-12 schools in ways that mitigate the spread of COVID-19 (COVID). The CDC’s guidance includes detailed steps for districts, which are summarized below.

  1. Employ the following mitigation strategies to reduce the spread of COVID in schools: A universal mask mandate, physical distancing, handwashing and respiratory etiquette, cleaning and maintaining healthy facilities, and contact tracing in combination with isolation and quarantine. Among these strategies, the CDC recommends prioritizing mask wearing and physical distancing.
  2. Assess the level of community transmission – Since the risk of COVID in schools is dependent on the level of community transmission, the CDC recommends the use of two measures to determine the risk of transmission: (1) the total number of new cases per 100,000 persons in the past 7 days, and (2) the percentage of positive COVID test results during the last 7 days. The transmission level for any given location will change over time and should be reassessed weekly for situational awareness and to continuously inform planning.
  3. Utilize learning modes to best mitigate the spread of COVID – Recommended learning modes (in-person, hybrid, virtual) vary depending on the level of community transmission and strict adherence to mitigation. The following is an operational plan for schools that emphasizes mitigation at all levels of community transmission:
  • K–12 schools should be the last settings to close after all other mitigation measures in the community have been employed, and the first to reopen when they can do so safely. Schools should be prioritized for reopening and remaining open for in-person instruction over nonessential businesses and activities.
  • In-person instruction should be prioritized over extracurricular activities, including sports and school events, to minimize the risk of transmission in schools and protect in-person learning.
  • Lower incidence of COVID among younger students (for example, elementary school students) suggests that they are likely to have less risk of in-school transmission due to in-person learning than older students (middle school and high school).
  • Students whose families are at an increased risk for severe illness or those who live with people at increased risk should be given the option of virtual instruction, regardless of the mode of learning offered.
  • Schools are encouraged to use “cohorting” or “podding” of students, especially in communities with moderate to high levels of transmission, to facilitate testing and contact tracing, and to minimize transmission across pods.
  • Schools that serve students who are at risk for learning loss during virtual instruction should be prioritized to reopen and provide the needed resources to implement mitigation.
  • When implementing phased mitigation in hybrid learning modes, schools should consider prioritizing in-person instruction for students with disabilities who may require special education and related services to be directly provided in school environments, as well as other students who may benefit from receiving essential instruction in a school setting.
  1. Offer referrals to COVID testing – Regardless of a community’s transmission level, schools should refer students, teachers and staff members who exhibit COVID symptoms, or who were exposed to someone with a confirmed or suspected case of COVID, to a diagnostic testing site.
  2. Perform COVID testing on-site – Schools may perform COVID testing on school property if school-based healthcare professionals are trained in specimen collection, obtain a Clinical Laboratory Improvement Amendments (CLIA) certificate of waiver, and have proper personal protective equipment (PPE).

Schools may also elect to screen students, teachers and staff members to identify infected individuals without symptoms who may be contagious in an effort to prevent further transmission. When determining which individuals should be selected for screening testing, the CDC recommends prioritizing teachers and staff over students given the higher risk of severe disease outcomes among adults. When determining which students should be selected for screening testing, the CDC recommends prioritizing high school students, then middle school students, then elementary school students.

Testing should be offered on a voluntary basis. Consent from a parent or legal guardian (for minor students) or from the individual (adult students, teachers, staff) is required for school-based testing.

Every COVID testing site is required to report all testing performed to state or local health officials as mandated by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

  1. Access to vaccines should not be considered a condition for reopening schools – The CDC says vaccinating teachers and school staff should be considered just one layer of mitigation and protection for staff and students. Even after they are vaccinated, schools need to continue mitigation measures for the foreseeable future, including mask wearing and physical distancing.

While not mandatory, the guidance from the CDC should be reviewed and considered by districts.  Districts already providing in-person instruction (whether “all in” or “hybrid”) should re-assess their mitigation efforts and decision-making frameworks to determine their alignment with the new guidance.  Districts currently providing only remote instruction should review this guidance and determine if a return to in-person instruction (either “all in” or “hybrid”) is feasible.  Districts contemplating a change in their model of instruction should be cognizant of the implications for both staff and students and be prepared to respond to these issues.

Walter | Haverfield attorneys will continue to monitor guidance from the CDC and inform you of any updates. If you have questions, please reach out to us here. We are happy to help with any challenges your district may be experiencing.

Christina Peer is chair of the Education Law Group at  Walter | Haverfield. She can be reached at cpeer@walterhav.com or at 216-928-2918.

Peter Zawadski is a partner at Walter | Haverfield who focuses his practice on education law as well as labor and employment matters. He can be reached at pzawadski@walterhav.com or at 216-928-2920.

Ohio Releases Guidance for School Districts on Extended Learning Plans for Students


February 15, 2021

Christina PeerFebruary 15, 2021 

The Ohio Department of Education released this FAQ bulletin to help public school districts learn more about Governor DeWine’s announcement from his press conference on February 9, 2021, to create extended learning plans for students by April 1, 2021.

DeWine recently called on school districts in a press conference to formulate and submit a specific plan for all students to make up for lost time due to the pandemic. His proposed ideas include extending the current school year, extending the school day, and/or beginning the new year early. Summer programs, tutoring, or remote options are also considerations. DeWine also encouraged parents to be communicative about their kids’ current level of learning and has asked them to work in partnership with schools in brainstorming how to catch up.

ODE clarifies in its FAQ that planning for extended learning is simply a request. However, it is likely this request will appear in upcoming proposed legislation as a requirement.

Furthermore, ODE is working to develop an optional template schools may employ when formulating their plan. Elements of the template will include:

  • Impacted Students – How will schools and districts identify which students have been most impacted by the pandemic in terms of their learning progress (with a focus on the most vulnerable student populations)?
  • Needs – How will schools and districts identify the needs of those students?
  • Resources and Budget – What resources are available to address those needs? Generally, what is the budget for the plan?
  • Approaches – What approaches can best be deployed to address those needs? (This may include approaches such as ending the school year later than scheduled, beginning the new year early, extending the school day, summer programs, tutoring and remote options.)
  • Partnerships – Which local and regional partners (such as educational service centers, Information Technology Centers, libraries, museums, after-school programs or civic organizations) can schools and districts engage in supporting student needs?
  • Alignment – How can this plan reinforce and align to other district or school plans, including plans for Student Wellness and Success Funds, improvement plans or graduation plans?

Each district may prepare a plan according to the unique needs of its student population. To fund these plans, the ODE recommends using the federal Elementary and Secondary School Emergency Relief Funds. Temporary federal funds may also become available in the near future to assist with the costs involved in creation and implementation of plans. The ODE said it will release additional information in the coming weeks to provide further clarification, including how plans should be submitted.

At this juncture, there are more questions than answers about extended learning plans. It is clear that, based on the different learning models that have been used throughout the state this year, a “one-size-fits-all” approach will not be appropriate. Districts must make decisions based on their specific circumstances and those of their students. And, while DeWine has indicated that funding will be available, districts will also have to navigate contractual issues with staff.

You may contact the ODE regarding extended learning plans here or reach out to us for assistance here.

Christina Peer is chair of the Education Law Group at  Walter | Haverfield. She can be reached at  cpeer@walterhav.com or at 216-928-2918.

The Department Of Labor Issues Guidance Regarding the Compensability of Certain Travel Time for Employees Who Telework Part of the Day

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January 25, 2021

Christine CosslerJanuary 25, 2021

The Department of Labor (DOL) Wage and Hour Division (WHD) recently issued guidance, in the form of an opinion letter, addressing whether certain travel time for partial-day teleworkers is compensable time under the Fair Labor Standards Act (“FLSA”).

While it does not carry the same force as a statute or regulation, an opinion letter is an official interpretation by the DOL on how it believes the FLSA applies in specific circumstances. In turn, because the DOL has enforcement authority over FLSA complaints, these opinion letters provide useful guidance to employers.

In Opinion Letter FLSA 2020-19, the DOL considered whether an employee who  teleworks for part of the day and works at the office for part of the day, while completing personal tasks in between, must be compensated for the intervening travel time. This factual scenario has become more common during the COVID-19 pandemic as employers continue to implement flexible and alternative work arrangements.   In answering this question, the DOL considered two hypothetical scenarios: (1) an employee who leaves the workplace to attend a parent-teacher conference and works remotely after the conference and, (2) an employee who works remotely in the morning, attends a doctor’s appointment and then travels to the office for the remainder of the work day.  In both of these scenarios, the WHD concluded that payment for the travel time was not required under the FLSA.

Under the FLSA, the time a non-exempt employee spends traveling to and from work is not compensable if it occurs before an employee starts or after the employee stops work. However, time spent traveling during normal work hours to and from multiple worksites is considered compensable travel time.  Further, under the continuous workday doctrine, all time between the employee’s first and last principal activity of the day is generally considered compensable work time.

In the first scenario addressed in the Opinion Letter, the DOL concluded the travel time between leaving the office and resuming teleworking was not compensable under the FLSA because “her time [was] hers to do with as she pleases.”  The DOL reached a similar conclusion regarding the second scenario, stating, “when employee arranges for her workday to be divided into a block worked at home and a block worked at the office, separated by a block reserved for the employee to use for her own purposes, the reserved time is not compensable, even if the employee uses some of that time to travel between home and the office.”

The DOL also concluded the travel time was not compensable under the worksite-to-worksite rule because the employer was not requiring the travel as part of the employee’s work, but rather the travel was for their own purposes. The DOL further concluded the continuous workday doctrine did not apply because the employees were “off-duty” during the travel time.

Wage and hour issues remain fact specific so if you have any questions, please contact us here.

Christine Cossler is a partner at Walter | Haverfield who focuses her practice on education law. She can be reached at ccossler@walterhav.com or at 216-928-2946.

Elizabeth Bolduc is an associate at Walter | Haverfield who focuses her practice on labor and employment law. She can be reached at ebolduc@walterhav.com or at 216-658-6218.

FAQ: School Districts and the Coronavirus Vaccine


January 13, 2021

Miriam PearlmutterJanuary 13, 2021 

As COVID-19 vaccines become more available, Ohio school districts will need to decide whether to implement mandatory immunization requirements for employees. Governor DeWine has prioritized school staff to begin receiving the vaccine as early as February 1, 2021, provided superintendents agree to in-person or hybrid attendance for students. Making this determination requires careful analysis of community needs, existing policies, and collective bargaining agreements, as well as federal and state regulations. The following questions and answers may be helpful as your district considers its options.

Q: May a school district require its employees to get the COVID-19 vaccine as a precondition to continued employment?

Generally, yes. In December of 2020, the Equal Employment Opportunity Commission (“EEOC”) issued guidance indicating employers do not run afoul of the Americans with Disabilities Act (“ADA”) by requiring employees to be vaccinated.[1] Specifically, the ADA sharply limits the medical inquiries and examinations that an employer can require when an individual is already employed.[2] The EEOC, however, determined that the vaccine itself is not a medical examination and by requiring an employee to be vaccinated, the employer does not implicate the ADA’s restrictions on medical examinations.

However, various exceptions are likely to arise. As explained below, administering the vaccine (or contracting with a third party for administration) may lead to pre-immunization medical questions and disability-related inquiries, permissible only when job-related or consistent with a business necessity.[3]  Further, employees who have disability-related or religion-based objections to the vaccine may be entitled to reasonable accommodations.[4]  If your school district opts to mandate vaccines for all employees, it will be important to consider individuals with disabilities and religious objections on a case-by-case basis.  Additionally, before implementing any vaccine requirements, your board should ensure it has: (1) considered its collective bargaining agreements; (2) adopted the relevant policies; (3) developed appropriate guidelines; and (4) consulted with counsel as needed.  School districts may also wish to consult with their insurance providers regarding liability concerns, if any.

Q: May a school district ask for proof that an employee received the COVID-19 vaccine?

Yes, simply asking for proof is permitted.  However, any follow-up questions about why the employee did not receive a vaccine may elicit information about an employee’s disability.[5]  A district may only ask such questions if it determines that such inquiries are job-related and consistent with business necessity.[6] To meet this standard, the district must have a reasonable belief, based on objective evidence, that either: (1) declining the vaccine will impair the employee’s ability to perform essential job functions; or (2) the employee will pose a direct threat to others by exposing them to the virus.[7] This may be a fairly difficult standard to meet in the school setting, particularly for buildings that have been open for instruction during the pandemic.  Even if the staff member poses a direct threat, however, the district would need to consider possible reasonable accommodations to reduce the risk of such a threat.[8]

In short, it is unlikely that unvaccinated employees will be considered to be a direct threat or unable to perform their job-related responsibilities.  Accordingly, school district administrators should avoid asking follow-up questions about why an employee did not receive a vaccine. As an aside, administrators should not require antibody testing (in place of vaccine proof), as the EEOC considers antibody testing impermissible in making decisions about returning to the workplace.[9]

Q: May a school district terminate an employee who refuses vaccination for disability-related reasons?

Generally, no.  Although individuals with disabilities who pose a direct threat to others are not entitled to continued employment,[10] this standard is fairly difficult to meet.  Specifically, in deciding whether the unvaccinated employee poses a direct threat, the district would need to consider the: (1) duration of the risk; (2) nature and severity of potential harm; (3) likelihood that the potential harm will occur; and (4) imminence of the potential harm.[11]  Moreover, the district would also need to determine it could provide no reasonable accommodation to mitigate the above risk or that providing such an accommodation would be an undue hardship.[12]

Many, if not most, school districts have been open to some form of in-person instruction for students at some time during the coronavirus pandemic. Accordingly, it would be challenging to show that an employee now poses a direct threat which cannot be mitigated by having the employee work remotely or some other reasonable accommodation aimed at mitigating transmission to others.  However, if a particular staff member works with medically-fragile students, for example, the above analysis may be relevant to a district’s determination of direct threat. If a reasonable accommodation is not possible, the employee may be excluded from the workplace, but termination may still not be appropriate if the employee can take leave or work out other alternative work arrangements that would mitigate potential transmission to others.[13]

Q: May a school district terminate an employee who declines to be vaccinated for reasons related to religious beliefs?

Generally, no.  Federal law requires employers to provide reasonable accommodations for religious belief or practice, unless doing so would pose an undue hardship.[14]  Undue hardship under Title VII includes anything over and above a minimal cost.[15] Depending on your district’s expected expenses in accommodating employees who refuse vaccines for religious reasons, you may consider whether the undue hardship standard would be met. Notably, district administrators should assume that an employee’s request for religious accommodations is sincere.[16] If you have an objective basis for questioning either the religious nature or sincerity of the belief, you may request additional supporting information.[17]

Determining whether to implement a mandatory or voluntary vaccine program is a challenging decision with multiple factors to consider. Please do not hesitate to contact us for any further assistance or with additional questions.

Miriam Pearlmutter is an associate at Walter | Haverfield who focuses her practice on education law. She can be reached at mpearlmutter@walterhav.com or at 216-619-7861.

[1] https://www.eeoc.gov/wysk/what-you-should-know-about-covid-19-and-ada-rehabilitation-act-and-other-eeo-laws Section K

[2] 29 CFR §1630.14(c)

[3] Id.

[4] 29 CFR § 1630.9(a); 29 CFR § 1605.2(b)

[5] https://www.eeoc.gov/wysk/what-you-should-know-about-covid-19-and-ada-rehabilitation-act-and-other-eeo-laws Section K.3

[6] 29 CFR § 1630.14(c)

[7] https://www.eeoc.gov/laws/guidance/enforcement-guidance-disability-related-inquiries-and-medical-examinations-employees#5

[8] https://www.eeoc.gov/wysk/what-you-should-know-about-covid-19-and-ada-rehabilitation-act-and-other-eeo-laws Section K.5

[9] https://www.eeoc.gov/wysk/what-you-should-know-about-covid-19-and-ada-rehabilitation-act-and-other-eeo-laws, A.7.

[10] 29 CFR § 1630.15(b)(2).

[11] 29 CFR §1630.2(r).

[12] Id., 29 CFR § 1630.15(d).

[13] https://www.eeoc.gov/wysk/what-you-should-know-about-covid-19-and-ada-rehabilitation-act-and-other-eeo-laws  K.7.

[14] 29 CFR § 1605.2 (b).

[15] 29 CFR § 1605.2 (e).

[16] https://www.eeoc.gov/wysk/what-you-should-know-about-covid-19-and-ada-rehabilitation-act-and-other-eeo-laws  K.6

[17] Id.

The EEOC Confirms that Employers May Require Employees to Receive the COVID-19 Vaccine, with Exceptions

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January 12, 2021

Rina RussoJanuary 12, 2021 

On December 16, 2020, the Equal Employment Opportunity Commission (EEOC) updated and expanded its technical assistance publication addressing issues arising under the federal equal employment opportunity laws implicated in the COVID-19 pandemic. In its guidance, the EEOC indicated that employers may require employees to receive the COVID-19 vaccine, so long as such requirement allows employees to seek accommodations from the requirement on the basis of a disability or a sincerely held religious belief. If an employee objects to receiving a COVID-19 vaccine for reasons related to the employee’s disability or sincerely-held religious belief, the employer has a duty to engage in the “interactive process” to determine whether it can make a reasonable accommodation for the employee.

Because pre-screening vaccination questions are likely to elicit information about a disability, an employer that plans to administer the vaccine (or have a third party with whom the employer contracts to administer a vaccine), must show that any pre-screening-disability inquiries are “job-related and consistent with business necessity.” However, this rule does not apply to (1) employers that make the vaccination voluntary or (2) employers that mandate the COVID-19 vaccine be obtained by a third-party (such as a pharmacy or other healthcare provider) to which it has no connection. The guidance also clarifies that employers may request proof of receipt of a COVID-19 vaccine from their employees. However, employers that request such proof of vaccination should caution employees not to provide other medical information as part of the verification process to avoid implicating the Americans with Disabilities Act (ADA).

Additionally, the EEOC made clear that it will not be a violation of the Genetic Information Nondiscrimination Act (GINA) to require employees to receive COVID vaccines that use new mRNA technology. However, employers should be careful not to ask employees for genetic information, including the employees’ family histories.

Although it appears that federal law allows employers to mandate COVID-19 vaccinations of employees in certain circumstances, employers must carefully consider multiple factors before determining whether to implement a mandatory COVID-19 vaccination policy. Employers must consider any applicable state and local laws related to mandatory vaccinations.  Additionally, for unionized entities, employers must review their collective bargaining agreements to determine whether they have a duty to bargain prior to implementing such a policy.  Employers should also consider how to balance their interest in maintaining a safe work environment with employee privacy concerns and morale.

Regardless of whether an employer decides to mandate COVID-19 vaccinations, it should start preparing and/or updating their infection prevention policies as vaccinations become more readily accessible to the general public. We will continue to monitor developments related to the new vaccines and related workplace questions that arise.

Rina Russo is a partner at Walter | Haverfield who focuses her practice on labor and employment law. She can be reached at rrusso@walterhav.com or at 216-928-2928.

Elizabeth Bolduc is an associate at Walter | Haverfield who focuses her practice on labor and employment law. She can be reached at ebolduc@walterhav.com or at 216-658-6218.

Coronavirus Relief Bill Signed Into Law


December 29, 2020

December 29, 2020 

On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021 into law, which provides $900 billion in coronavirus relief and $1.4 trillion to fund the government.  Below is a summary of the bill’s many provisions that will affect employers.

  • Payroll credit for paid sick and family leave: The Families First Coronavirus Response Act (FFCRA) provided a refundable tax credit for the mandated paid sick leave and family leave for private-sector employers with under 500 employees. The bill does not extend the FFCRA provisions that required private and public sector employers (state and local government entities) to provide emergency paid sick and family leave. Instead, this bill extends the tax credit through March 31, 2021, for private-sector employers that voluntarily continue to offer paid sick and family leave to their employees for the same as available under the FFCRA.  Importantly, the bill does not create additional leave entitlements, employees still only have the original 80 hours of paid sick leave and 12 weeks of expanded family and medical leave (of which, the first two weeks are unpaid by default). Employers will not receive tax credits for any amount of emergency paid sick and family leave that is provided in excess of the FFCRA’s statutory limits. Additionally, to be eligible for the tax credits, employers may not discharge, discipline, or discriminate against any employee who seeks to take emergency paid sick and family leave.
  • Payroll Tax Deferral: Workers whose payroll taxes have been deferred since September would be given until Dec. 31, 2021, to pay back the government, instead of through April 30, 2021, as originally directed by the Treasury Department.
  • CARES ACT: Extends and expands the CARES ACT employee retention tax credit (ERTC). Extends the date by which state and local governments must make expenditures with CARES Act Coronavirus Relief Fund (CRF) awards from Dec. 30, 2020, to Dec. 31, 2021.
  • Unemployment Benefits: Extends the Federal Pandemic unemployment Compensation (FPUC) program through March 14, 2021, providing $300 per week for all workers receiving unemployment benefits.

As of January 1, 2021, the emergency paid sick and family leave under the FFCRA will become voluntary to employers. Employers should determine whether it will continue to offer paid sick and family leave consistent with the FFCRA. Employers will need to revise and update their existing leave policies and practices.

The attorneys at Walter | Haverfield are here to help you navigate your obligations under local, state, and federal laws.

Elizabeth Bolduc is an attorney at Walter | Haverfield who focuses her practice on labor and employment law. She can be reached at ebolduc@walterhav.com or at 216-658-6218.

New COVID-19 Stimulus Bill Provides Clarifications and Expansions to the Paycheck Protection Program


December 28, 2020

December 28, 2020 

On Sunday, December 27, 2020, despite voicing initial criticisms of the act, President Trump signed into law the Consolidated Appropriations Act of 2021 (the “Act”). While the Act covers a variety of different fields, it provides much needed clarification, as well as certain expansions, to the Paycheck Protection Program (“PPP”), the immensely popular loan program for struggling small businesses enacted under the Coronavirus Aid, Relief and Economic Security Act back in March of 2020 (“CARES Act”). This alert provides a brief high-level overview of language within the Act that modifies and affects the PPP.

Additional Funding to the PPP and Extension on Deadline to Apply

The Act allocates $284 billion to the U.S. Small Business Association (SBA) in order to facilitate new PPP loans. Prospective PPP borrowers now have until March 31, 2021 to apply for a PPP loan. The SBA has 10 days from December 27, 2020 (the date upon which the President signed the Act into law) to establish any new regulations concerning the administration of this new PPP funding.

Allows Certain Businesses to Apply for a Second PPP Loan

While this new round of PPP funding is available to first-time qualified borrowers, the Act also reopens the PPP for select businesses that previously received PPP funding. Specifically, borrowers that have already received PPP funding are eligible to receive a second round of PPP funding of up to 2.5x their average monthly payroll (capped at $2 million per borrower), so long as they meet the following criteria:

  • The borrower has 300 or fewer employees;
  • The borrower has used or will use the full amount of their first PPP loan; and
  • The borrower can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.

In addition, while most borrowers will only be eligible for a loan of up to 2.5x their average monthly payroll, borrowers within the accommodation and food services industries will be eligible to receive a second round of PPP funding of up to 3.5x their monthly average payroll (still capped at $2 million per borrower).

Choice of Covered Period and Expansion to Eligible Expenses

The “covered period” is the time allotted for borrowers to spend PPP loan proceeds on qualified expenses for purposes of forgiveness. The Act gives borrowers the option to choose a “covered period” of 8 or 24 weeks. These options are the same as they were in the first round of PPP funding.

Also similar to the first round of PPP funding, costs eligible for forgiveness include payroll, rent, and certain mortgage, interest, and utility expenses. However, the Act now expands the definition of “eligible expenses” to include supplier costs, covered worker protection and facility modification expenditures (including PPE), as well as certain operating costs, such as software and cloud computing services and accounting needs.

Eligible Expenses Paid with Forgiven PPP Loans Now Tax-Deductible

The Act also officially deems business expenses paid with forgiven PPP loans as tax-deductible, finally putting to bed the argument that has raged on ever since the passage of the CARES Act. While the CARES Act excluded PPP loan forgiveness from gross income, it did not specifically address whether the expenses used to achieve that loan forgiveness would continue to be deductible, even though they otherwise would be deductible. Guidance from both the IRS and the Treasury Department subsequently came out affirmatively stating that such expenses would not be tax deductible. However, experts argued that by passing the CARES Act, Congress intended that these business expenses would be tax deductible. The clarification regarding tax deductions comes as a welcome relief to many PPP borrowers who were uncertain about the deductibility of these expenses.

PPP Eligibility Changes

The Act also expanded and clarified what types of borrowers are eligible for PPP loans. The Act grants eligibility to Sec. 501(c)(6) organizations, so long as they have a) less than 300 employees, b) do not receive more than 15% of receipts from lobbying, c) the lobbying activities do not comprise more than 15% of total activities of the entity and d) the cost of lobbying activities did not exceed $1,000,000 during the most recent tax year that ended prior to February 15, 2020.

In addition, the following types of borrowers have received eligibility rights for the second round of PPP funding:

  • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
  • Sole proprietors, independent contractors, and eligible self-employed individuals.
  • Not-for-profits, including churches.
  • Certain news organizations that were previously ineligible due to affiliation rules.
  • Accommodation and food services operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 300 employees per physical location.

Finally, the Act now excludes publicly traded companies from PPP loan eligibility. As noted in guidance from the SBA and the Department of Treasury following the implementation of the CARES Act, this Act officially codifies Congress’ intent to prohibit large publicly traded companies from receiving PPP funding.

Simplifies Forgiveness Application for PPP Loans Less than $150,000

If a borrower is applying for forgiveness for a PPP loan of less than $150,000, the borrower only needs to make a certification of the change in their gross receipts in order to apply for the loan. The SBA will provide such certification no later than 24 days after December 27, 2020. The certification will be no more than one page in length and will verify the loan recipient’s eligibility to their lender. Simply requiring a certification, rather than supporting documentation, will likely expedite the forgiveness process for smaller PPP loans.

Walter | Haverfield is monitoring the guidance concerning this program closely and is prepared to assist businesses navigate these important, yet complex issues. If you have additional questions, please reach out to us at questions@walterhav.com. We are happy to help.

Scott A. Fishman is an associate at Walter |Haverfield who focuses his practice on business services. He can be reached at sfishman@walterhav.com or at 216-619-7859.