COVID-19 What You Need To Know · 2020-05-15 · COVID-19 What You Need To Know April 22, 2020 Presented by: RICHARD ASENSIO | Director of Compliance, Burnham Benefits TAYLOR BOYD

COVID-19What You Need To KnowApril 22, 2020

Presented by: RICHARD ASENSIO | Director of Compliance, Burnham BenefitsTAYLOR BOYD | Vice President, Burnham GibsonCATHY GEE| Senior Vice President, Burnham BenefitsCHRIS KRUSIEWICZ | Vice President, Burnham BenefitsSARA OWENS | COO, Burnham Risk

INTRODUCTION

About Burnham

Employee Benefits Retirement Planning Property & Casualty

INTRODUCTION

Presenter Introductions

CATHY GEESenior Vice President

Burnham Benefits

SARA OWENSCOO

Burnham Risk

TAYLOR BOYDSenior Vice President

Burnham Gibson

CHRIS KRUSIEWICZVice President

Burnham Benefits

RICHARD ASENSIODirector of Compliance

Burnham Benefits

Regulatory Developments and Recently Issued Guidance

SECTION I

Business Insurance Updates

Webinar Agenda

Preparing for Reopening

03

01

02SECTION II

SECTION III

401k Retirement Updates04SECTION II

01 SECTION I

Regulatory Developments and Recently Issued Guidance

CARES ACT

Paycheck Protection Program and Health Care Enhancement Act

ABOUT BURNHAM BENEFITS

• $480B COVID-19 relief package• $321B to SBA for paycheck protection

program• $60B of which will go to underbanked

businesses (e.g., minorities, rural areas, and mom/pop stores without good banking connections)

• $60B in loans for economic disaster assistance

• $25B for COVID-19 testing• $75B for hospitals and health care workers

REGULATORY DEVELOPMENTS & RECENTLY ISSUED GUIDANCE

CARES ACT

Federal Law Guidance


• Updated Response Act Q/As from the DOL at https://www.dol.gov/agencies/whd/pandemic/ffcra-questions that address questions regarding:

• Payment of sick leave to variable hour and part-time employees • When an employer could require use of existing sick leave • Meaning of “stay-at-home”• Payment recovery in the event of enforcement action by DOL

• Updated IRS FAQ regarding claiming tax credit for certain health care provider and emergency responder employees normally excluded from Response Act eligibility but obtained leave for a non-excluded reason

• Available at https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs

• Surprise medical billing prohibited during COVID-19 emergency crisis?• Limited relief for some 2019 Form 5500 filings • CDC voluntary return-to-work guidance released

• House of Representatives introduces the “Reopen America Act of 2020” (H.R.6525)


https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs

CARES ACT

CA State and Local Law Guidance


• COVID-19 related FAQs on laws enforced by the California Labor Commissioner’s office at https://www.dir.ca.gov/dlse/2019-Novel-Coronavirus.htm

• Executive Order N-51-20• Food Sector Workers entitled to COVID-19 supplemental paid sick leave

• Emergency supplemental paid sick leave laws for LA and SF• Designed to pick up where the Families First Coronavirus Response Act left off• LA’s law applies to employers with at least 2,000 nationwide OR 500+ within the City,

available here. Rules and regulations issued to implement the Ordinance are available here. • SF’s law applies to employers with 500+ employees worldwide and is available here. FAQs

are available here.• Reasons for leave include those in “vulnerable populations”

• SF Health Care Security Ordinance• 2019 annual reporting cancelled• 1st Q contributions due April 30, 2020


https://www.dir.ca.gov/dlse/2019-Novel-Coronavirus.htm

https://www.lamayor.org/sites/g/files/wph446/f/page/file/SUPPLEMENTALPAIDSICKLEAVE.pdf

https://wagesla.lacity.org/sites/g/files/wph471/f/COVID19-SPSL-RR-20200411.pdf

https://sfgov.org/olse/sites/default/files/Public%20Health%20Emergency%20Leave%20-%20FINAL_0.pdf

https://sfgov.org/olse/sites/default/files/PHEL%20FAQ%2004.17.20.pdf

CARES ACT

Audience Poll Results

ABOUT BURNHAM BENEFITSREGULATORY DEVELOPMENTS & RECENTLY ISSUED GUIDANCE

02SECTION II

Preparing for Business Reopening

PREPARING FOR REOPENING

When will states/cities begin to “reopen”?

Guidelines – Opening Up America Again (authored by the White House)Visit: https://www.whitehouse.gov/openingamerica/

States/Regional – must meet “Gating Criteria”

Symptoms:Downward trajectory of influenza like illnesses (ILI) reported within 14 day period ANDDownward trajectory of COVID-like syndromic cases reported within a 14 day period

Cases:Downward trajectory of documented cases within a 14-day period Downward trajectory of positive tests as a percent of total tests within a 14-day period (flat or increasing volume of tests)

Hospitals:Treat all patients without crisis care Robust testing program in place for at-risk healthcare workers, including emerging antibody testing

https://www.whitehouse.gov/openingamerica/


Phases One, Two, Three

• Outlines the gating criteria that states/regions should meet before entering each phase. Though not stated specifically in the guidance, all phases appear to be two weeks (14 days) long.

All gating criteria mentioned previously

All gating criteria met for second time PLUS no evidence of rebound

All gating criteria met for third time PLUS no evidence of rebound

• At each stage, the restrictions on individuals and on employers are lessened

PHASE 1

PHASE 2

PHASE 3


Flexible according to circumstances

• State and local officials may need to tailor the application of these criteria to local circumstances

• e.g., metropolitan areas that have suffered severe COVID outbreaks,

• rural and suburban areas where outbreaks have not occurred or have been mild.

• Additionally, where appropriate, Governors should work on a regional basis to satisfy these criteria and to progress through the phases outlined on the next slides


States must be ready – core responsibilities

• Testing and contact tracing• Establish safe and efficient screening sites for

symptomatic individuals

• Trace contacts of COVID+

• CDC being deployed to the states

• Screen “sentinel surveillance sites” (sites that serve older individuals, lower income Americans, racial minorities, and Native Americans) for asymptomatic cases and trace contacts of COVID+ results.

• Healthcare system capacity• Provide PPE and critical medical equipment for

any surge, including ICU capacity


Individuals Phase 1 Phase 2 Phase 3

ALL VULNERABLE INDIVIDUALS* should continue to shelter in place. Members of households with vulnerable residents should be aware that by

returning to work or other environments where distancing is not practical, they could carry the virus back home. Precautions should be taken to isolate

from vulnerable residents

Yes Yes

No longer shelter in place; but minimize high exposure

environments and take precautions

All individuals, WHEN IN PUBLIC (e.g., parks, outdoor recreation areas, shopping areas), should

maximize physical distance from others. Social settings of more than 10 people, where appropriate distancing may not be practical, should be avoided

unless precautionary measures are observed

Yes Yes; avoid >50 people

Low Risk populations should consider minimizing time

spent in crowded environments.

Minimize Non-Essential Travel; and/or adhere to CDC Guidelines on isolation after travel

Yes Can resume Can resume

Employers Phase 1 Phase 2 Phase 3

Continue to ENCOURAGE TELEWORK, whenever possible and feasible with business

operations.Yes Yes

Resume unrestricted staffing of worksites.

If possible, RETURN TO WORK IN PHASES. Yes

Close COMMON AREAS where personnel are likely to congregate and interact, or enforce

strict social distancing protocolsYes Yes

Minimize NON-ESSENTIAL TRAVEL and adhere to CDC guidelines regarding isolation

following travel.Yes Can resume

Strongly consider SPECIAL ACCOMMODATIONS for personnel who are members of a VULNERABLE POPULATION

Yes yes


Specific Types of Employers Phase 1 Phase 2 Phase 3SCHOOLS AND ORGANIZED YOUTH ACTIVITIES (e.g.,

daycare, camp) that are currently closed should remain closed.

Closed Open Open

VISITS TO SENIOR LIVING FACILITIES AND HOSPITALS should be prohibited. Those who do interact with

residents and patients must adhere to strict protocols regarding hygiene.

Visits prohibited Visits prohibited Visits can resume

LARGE VENUES (e.g., sit-down dining, movie theaters, sporting venues, places of worship) can operate under strict physical distancing protocols.

Open; but strict physical distancing

Open; but moderate physical distancing

Open; but limited physical distancing

ELECTIVE SURGERIES can resume, as clinically appropriate, on an outpatient basis at facilities that

adhere to CMS guidelines.Yes Yes Yes

GYMS can open if they adhere to strict physical distancing and sanitation protocols.

Open; but strict physical distancing and sanitizing

Open; but strict physical distancing and sanitizing

Open; adhere to standard sanitation protocols

BARS should remain closed. Closed

May operate with diminished standing

room occupancy, where applicable and

appropriate

May operate with increased standing room occupancy,

where applicable



Guidelines for individuals and employers

• Individuals• Practice good hygiene (include “strongly suggest

face coverings in public and mass transportation)

• Stay home if sick

• Employers• Develop policies in accordance with Federal, State,

and local regulations/guidance on

• Social distancing, PPE

• Temperature checks

• Testing, isolating, and contact tracing (monitor workforce for symptoms)

• Sanitation

• Use of disinfection

• Business travel


California – Gov. Gavin Newsom Six Goals

1. Expanding testing

2. Protecting high risk groups, including seniors, the medically vulnerable and people in facilities like nursing homes

3. Ensuring hospitals have enough beds and supplies to care for patients

4. Progress in developing treatments

5. Ability of schools and businesses to support physical distancing

6. Ability to decide when to reinstitute stay-at-home orders if needed


When California?

“The most important is our ability to expand our testing,”

Gov. Newsom said.

• Newsom established a task force to dramatically ramp up testing. Goal tens of thousands tests/day.

• The state must be able to test people who show symptoms and identify those in contact with people who test positive to determine how far the virus has spread, according to a presentation provided by Newsom’s office.


As of April 21, 2020 – California vs. New York


Employer Readiness Checklist

✓Determining which employees to return to work, and when and how to bring them back; stagger shifts or workweeks

✓Physical worksite: maintaining a safe workplace for employees and customers; cleaning

✓Employee health/safety: conducting screenings and developing other health and safety protocols such as contact tracing; posting signage as necessary

✓Communicating to employees regarding COVID-19 related issues, including how and what to communicate; designate contact person for employees to ask questions

✓Provide training to employees on new procedures


Employer Readiness Checklist (cont.)

✓Complying with federal, state and local COVID-19 related laws and orders, including new and expanded paid leave laws

✓Developing and implementing COVID-19 related policies

✓Update your business travel policy

✓Deep clean office space

✓Reasonable accommodations for vulnerable workers

✓Unique exposures

✓Create a policy on group meetings



03SECTION III

Business Insurance Updates

BUSINESS INSURANCE UPDATES

Workers’ Comp Proposed Changes

• Proposed rule changes that are being proposed to the Insurance Commissioner help California employers

• Workers’ compensation claims

• Class Code 0012 Idle Worker Code

• Reclassification of employees with modified duties

• Payroll adjustments for non-working employees

Pending DOI Approval


Basis of Payroll- Proposed New Rule

• CLERICAL OFFICE EMPLOYEES:

• Effective as the date of the CA statewide stay-at-home order and concluding 60 days after the order is lifted, the payroll of an employee who meets the definition of a Clerical Office Employee, as defined by Rule 4a, Clerical Office Employees, and whose payroll for the balance of the policy period is not assignable to a standard classification that specifically includes Clerical Office Employee, shall be assigned to Classification 8810, Clerical Office Employees.



Basis of Payroll- Proposed New Rule

• EMPLOYEES ON PAID LEAVE:

• Effective as the date of the CA statewide stay-at-home order and concluding 30 days after the order is lifted, payments made to an employee, including but not limited to sick or family leave payments, while the employee is performing no duties of any kind in service of the employer shall be excluded from remuneration; however, the excluded amounts shall be no greater than the employee’s regular rate of pay.



Premium Refunds and Delayed Payments

• Sales and payroll adjustments

• Refunds being interpreted differently. Waiting on direct guidance from the DOI



04SECTION IV

401k RetirementUpdates

Burnham Gibson

Due to compliance regulations, the Burnham Gibson portion of the presentation cannot be shared.

For any questions regarding this section, please reach out to Taylor Boyd at [email protected]

RETIREMENT PLANNING

mailto:[email protected]

RETIREMENT PLANNING

Audience Poll

Join us next Wednesday

THANK YOU

“Deep Dive: Returning to the Workplace”

WEBINAR EXPERIENCETHANK YOU

We are here to answer your questions and find the best solutions

C O N N E C T W I T H U S

BURNHAM COVID-19 RESPONSE [email protected]

For Burnham Risk specific questions

[email protected]

For Burnham Gibson retirement specific questions

[email protected] 949.833.5700

A copy of the presentation slides will be sent out to all attendees tomorrow morning and posted on BurnhamBenefits.com/COVID-19




The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or to participate in any trading strategy. This document was produced by and the opinions expressed are those of Burnham Gibson Wealth Advisors as of the date of writing and are subject to change. This research is based on Burnham Gibson Wealth Advisors proprietary research and analysis of global markets and investing. The information and/or analysis contained in this material have been compiled or arrived at from sources believed to be reliable, however Burnham Gibson Wealth Advisors does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof. Past performance is no guarantee of future results. The use of tools cannot guarantee performance. Any decision to invest according to investment advice provided by Burnham Gibson Wealth Advisors should be made after conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of an investment.

Burnham Gibson Wealth Advisors and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with Burnham Gibson Wealth Advisors of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

Market indexes are included in this report only as context reflecting general market results during the period. Burnham Gibson Wealth Advisors may provide research on funds that are not represented by such market indexes. Accordingly, no representations are made that the performance or volatility of any fund where Burnham Gibson Wealth Advisors provides research will track or reflect any particular index. Market index performance calculations are gross of management and performance incentive fees.

All investments involve varying levels and types of risks. These risks can be associated with the specific investment, or with the marketplace as a whole. Loss of principal is possible. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the any performance are not intended to be forward looking and should not be viewed as an indication of future results.

The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

Investment advisory and asset management services are offered by investment adviser representatives (IARs) through Burnham Gibson Wealth Advisors, Inc. (Burnham Gibson), a registered investment adviser. Burnham Gibson IARs are also, separately and apart from Burnham Gibson., registered representatives who offer securities through AXA Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC, as well as agents who offer insurance and annuity products through AXA Network, LLC, which conducts business as AXA Network Insurance Agency of California, LLC in California, and as AXA Network Insurance Agency of Utah, LLC in Utah. AXA Advisors and AXA Network do not provide ERISA fiduciary, tax or legal advice and are not affiliates of BurnhamGibson. Individuals may transact business and/or respond to inquiries only in state(s) in which they are properly qualified. The National Association of Plan Advisors (NAPA) is a national nonprofit organization, and is not affiliated with Burnham Gibson Wealth Advisors, Inc.

ACR#239519 05/17 BGWA.2019.30

DISCLOSURES

APPENDIX

CARES ACT

LA and SF Emergency Paid Sick Leave


LA SF

Title • COVID-19 Supplemental Paid Sick Leave • Public Health Emergency Leave (PHEL)

Effective Period • 4/7/2020 until 2 weeks following end of COVID-19 emergency period

• 4/17/2020 until 6/17/2020 or when emergency ends, if earlier

Covered Employers • 500+ employees in LA city (not County) OR 2,000 employees nationwide• Based on average # EEs during previous

calendar year• Includes (but not limited to) FT, PT,

temporary or seasonal EEs, those employed through temp agency

• 500+ employees nationally

Covered Employees • Employed from 2/3/2020 -3/4/2020 with same ER and unable to work/or telework

• Includes all working within City boundaries, including those working or teleworking in LA but ER is not

• Includes EEs covered by collective bargaining agreements (CBAs) in effect as of April 7, 2020 that don’t address COVID-19 leaves unless CBA is amended to expressly waive its terms

• FT, PT, and temporary EEs, performing work, including limited work within SF

• Undocumented EEs• EEs covered by CBAs unless waived by

CBA


CARES ACT

LA and SF Emergency Paid Sick Leave (cont’d.)


LA SF

Exemptions • ERs with any # of emergency responders or healthcare workers

• ERs providing global parcel delivery services

• ERs providing EEs with 160+ hours PTO, vacation, paid sick leave annually

• New businesses opened or relocated between 9/4/19-3/4/20 (except construction)

• Government agencies• Closed/Non-operating businesses for 14+

days due to COVID-19

• ERs covered by the Families First Coronavirus Response Act (FFCRA)

• Private sector ERs at SF International Airport

• Private ERs located at Presidio and other federal enclaves within SF

• Limited use for health care providers/ emergency responders


CARES ACT



LA SF

Amount and Duration of Leave

• 80 hours for EE working 40+ hours per week or is classified as FT EE

• Average 2-week pay between 2/3/2020 -3/4/2020

• For non-FT EEs use base rate of pay (no OT); add # hours worked during this 4-week period and divide by 2; max. 80 hours

• Capped at $511/day or $5,110 total• Intermittent leave permitted

• 80 hours for EE as of 2/25/2020 working 40 hours per week

• PT EEs as of 2/25/2020 based on avg. # hours over 2-week period EE was scheduled over previous 6 months

• EEs hired after 2/25/2020, based on avg. over 2-week period between hire date and leave date

• Max. 80 hours leave total• Intermittent leave permitted

Offsets • Leave is in addition from regular paid sick leave mandated by the city and state of California

• Leave amount reduced for every hour EE is paid sick leave (not including previously accrued hours, or hours accrued on or after 3/4/2020) for inability to work due to COVID-19 or for leave reasons indicated above

• Runs concurrently with FFCRA paid leave and is in addition to state and city mandated paid sick leave

• Leave amount reduced for every hour EE is paid sick leave consistent with Ordinance (not including previously accrued hours or hrs. accrued after 2/25/2020)


CARES ACT



LA SF

Qualifying Leave Reasons

• EE advised by health care provider or public health official to self-quarantine

• EE is 65+ with health condition (vulnerable population)

• EE needs to care for a non-sick family member that was advised by health care provider or public health official to self-quarantine

• EE needs to care for family member whose senior care provider or school/childcare facility for a child under age 18 has closed or temporarily ceased operations and unable to find alternative care arrangements

• EE unable to work or telework due individual or general Federal, State, or local quarantine or isolation order• Includes EE in vulnerable population

(60+ with health condition)• EE advised by health care provider to self-

quarantine• EE is experiencing symptoms associated

with COVID-19 and seeking medical diagnosis

• EE is caring for family member subject to any of the above

• EE is caring for family member whose school or day care center has been closed or childcare provider is unavailable due to public health emergency

• Substantially similar condition described in the FFCRA


CARES ACT



LA SF

Required Documentation

• ER can require EE to verbally or in writing provide reason for taking leave (e.g., childcare, quarantine, vulnerable medical condition)

• ER cannot require doctor’s note or other documentation

• ER cannot require description or explanation of reason for leave

• EE and ER cannot agree to waive paid sick leave

• Reasonable notice procedures only when need is foreseeable

• ER can require EE to identify basis for taking leave (e.g., childcare, quarantine, vulnerable medical condition)

• ER cannot require doctor’s note letter from childcare facility

Notice Requirements • Ordinance is silent • Yes. City to provide model notice to be posted, mailed, emailed and/or posted on the intranet


CARES ACT



LA SF

Recordkeeping • Documentation of paid leave, requests for supplemental paid sick leave, date requested, category or leave reason, and ER decision to grant/deny leave

• Documentation of any applicable exemption, including documentation supporting access to 160 hours paid leave

• ER must retain records documenting work schedules, hours worked, PHEL leave taken for a period of 4 years

• For exempt EEs, retain records of work schedules and days worked (actual hours not required)

• Must allow Office of Labor Standards Enforcement (OLSE) access

Enforcement • EE may bring action in state court for reinstatement, back pay, supplemental paid leave withheld, and/or other appropriate legal or equitable relief

• Retaliation prohibited

• Complaint could be filed with the OLSE or suit brought in court

• Retaliation prohibited


COVID-19 What You Need To Know · 2020-05-15 · COVID-19 What You Need To Know April 22, 2020 Presented by: RICHARD ASENSIO | Director of Compliance, Burnham Benefits TAYLOR BOYD

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