WASHINGTON, DC –The U.S. Department of Labor took a range of actions last week to aid American workers and employers as our nation combats the coronavirus pandemic.

As the week progressed, many more states began delivering unemployment benefits to those who are temporarily out of work, including independent contractors and gig workers, and Department staff continued to work closely with states across the country. By week’s end, more than two-thirds of states were providing the CARES Act’s enhanced $600 benefit. U.S. Secretary of Labor Eugene Scalia and Assistant Secretary of Labor for the Employment and Training Administration John Pallasch hosted a press call with dozens of reporters from around the country to provide an update on states’ implementation of the unemployment program. Also last week, the Department’s Occupational Safety and Health Administration (OSHA) released several documents regarding enforcement and compliance assistance efforts to keep American workers safe.

“This is a challenging time for workers and their families as millions of Americans make sacrifices for the well-being of neighbors, co-workers, and country,” said U.S. Secretary of Labor Eugene Scalia during the press call Wednesday. “We quickly issued rules and guidance that provide a roadmap to States, employers, and workers so our economy can outlast this virus and workers can receive the benefits they are entitled to. All of our Labor Department agencies are participating in the important work of supporting the workforce during these difficult times.”

The below list includes links to access these important resources.

On Unemployment Insurance:

• Statement by Secretary of Labor Eugene Scalia on Unemployment Insurance Claims – Secretary of Labor Eugene Scalia issued a statement regarding Unemployment Insurance claims, noting the report “reflects the continuing impact of the important public health measures being taken to defeat the coronavirus.”

• New Frequently Asked Questions on Unemployment Benefits have been posted – The U.S. Department of Labor’s Employment and Training Administration published new guidance for Americans who have questions about unemployment benefits.

Funding for Dislocated Workers:

• U.S. Department of Labor Awards More Than $131 Million in Dislocated Worker Grants in Response to Coronavirus Public Health Emergency – The U.S. Department of Labor announced the award of the first installment of 26 Dislocated Worker Grants (DWGs) totaling $131,384,557 to help address the workforce-related impacts of the coronavirus public health emergency. These awards, provided by the CARES Act, create temporary jobs that employ individuals to help respond to the coronavirus pandemic.

Keeping America’s Workplaces Safe and Healthy:

• U.S. Department of Labor Issues Alert to Help Keep Manufacturing Workers Safe During Coronavirus Pandemic – OSHA issued an alert identifying workplace safety practices to help protect manufacturing workers from exposure to coronavirus.

• U.S. Department of Labor Announces OSHA Interim Enforcement Response Plan to Protect Workers During The Coronavirus Pandemic – OSHA announced an interim enforcement response plan for the coronavirus pandemic that provides instructions and guidance to OSHA Area Offices and compliance safety and health officers for handling coronavirus-related complaints, referrals, and severe illness reports. The plan concentrates enforcement on coronavirus exposures of health workers, emergency responders, and others.

• U.S. Department of Labor Considers Employer’s Good Faith Efforts When Enforcing Compliance During COVID-19 Pandemic – OSHA issued interim guidance that advises compliance safety and health officers to evaluate an employer’s good faith efforts to comply with safety and health standards during the coronavirus pandemic. Employers are also expected to take corrective action as soon as possible once normal activities resume.

During the coronavirus pandemic, the Department of Labor is focused on the safety and health of American workers, assisting our state partners as they deliver traditional unemployment and expanded unemployment benefits under the CARES Act, ensuring Americans know their rights to new paid sick leave and expanded family and medical leave, providing guidance and assistance to employees, and carrying out the mission of the Department.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

WASHINGTON, DC – Secretary of Labor Eugene Scalia issued the following statement regarding Unemployment Insurance claims:

“Today’s report reflects the continuing impact of the important public health measures being taken to defeat the coronavirus. Americans are making sacrifices for the wellbeing of the country, and the Trump Administration is moving quickly to support workers and small businesses during this difficult time. The Department of Labor has issued all the essential guidance the States need to implement the historic unemployment benefits expansion under the CARES Act, and 29 States are now paying the $600 weekly boost in unemployment benefits under the Act. The remaining States will begin providing the benefit as they update their systems. The Department has disbursed more than half a billion dollars in administrative funding to States to help them contend with the surge in claims and burden on their staff and computer systems, and additional funding will be released as States apply and meet the requirements set by Congress. The Administration also continues to prioritize keeping American workers connected to their employers through programs that aid business owners in keeping workers on payroll. As America maintains its disciplined efforts to “slow the spread,” the Department will continue to prioritize getting prompt relief to workers and the States and businesses that support them.”

WASHINGTON, DC – The U.S. Department of Labor’s recent actions have aided American workers as our nation combats the coronavirus pandemic.

“Through daily technical assistance, four major guidance documents, answers to frequently asked questions, and proactive IT support related to the CARES Act, the department has given states a roadmap of how to get financial relief into the hands of American workers,” said Assistant Secretary of Labor for the Employment and Training Administration John Pallasch. “After investing half a billion dollars to improve states’ unemployment delivery systems, with more to come, we will see hundreds of billions of dollars flow to the temporarily unemployed when they need it most.”

“For months, OSHA has been informing employers what they need to do to keep employees safe from COVID-19,” said Principal Deputy Assistant Secretary for the Occupational Safety and Health Administration Loren Sweatt. “The documents OSHA has released offer guidance for protecting workers, provide clarity for OSHA enforcement, including requirements for personal protective equipment, and reminds employers that they cannot retaliate against workers who report hazardous conditions. And, where we need to, OSHA will take enforcement action to make sure American’s workers are protected.”

“With millions of Americans eligible for new and expanded leave programs, the Wage and Hour Division is working tirelessly to answer the public’s questions and conduct outreach to groups and individuals so that employers across the country provide employees with the benefits they need during the coronavirus outbreak,” said Administrator of the Wage and Hour Division Cheryl Stanton. “WHD has taken hundreds of complaints and is working to resolve them as soon as possible.”

The below list includes links to access these important resources.

• Statement by Secretary of Labor Eugene Scalia at the White House Task Force Briefing
• Statement by Secretary of Labor Eugene Scalia on Unemployment Insurance Claims
• U.S. Department Of Labor Publishes Guidance on Federal Pandemic Unemployment Compensation
• U.S. Department Of Labor Publishes Guidance on Pandemic Unemployment Assistance
• U.S. Department of Labor Publishes Latest Guidance Regarding Pandemic Emergency Unemployment Compensation Program
• U.S. Department Of Labor Announces New CARES Act Guidance on Unemployment Insurance for States in Response to COVID-19 Crisis
• U.S. Department of Labor Publishes New OSHA Poster Aimed At Reducing Workplace Exposure to the Coronavirus
• U.S. Department of Labor Issues Alert to Keep Package Delivery Workers Safe during COVID-19 Pandemic
• U.S. Department of Labor Issues Enforcement Guidance For Recording Cases of COVID-19
• U.S. Department of Labor Expands Temporary Guidance for Respirator Fit-Testing to All Industries during COVID-19 Pandemic
• U.S. Department of Labor Issues Alert to Keep Retail Workers Safe During Coronavirus Pandemic
• U.S. Department of Labor Reminds Employers That They Cannot Retaliate Against Workers Reporting Unsafe Conditions During Coronavirus Pandemic
• U.S. Department Of Labor Issues Guidance for Respirators Certified under Other Countries’ Standards During COVID-19 Pandemic
• U.S. Department of Labor Issues Guidance for Respiratory Protection During N95 Shortage Due to COVID-19 Pandemic
• U.S. Department Of Labor Announces Additional Guidance Following Paid Sick Leave and Expanded Family and Medical Leave Implementation
• U.S. Department Of Labor Announces New Paid Sick Leave And Expanded Family and Medical Leave Implementation
• U.S. Department Of Labor Adds To Guidance for Workers and Employers Explaining Paid Sick Leave and Expanded Family and Medical Leave Benefits Under the Families First Coronavirus Response Act
• U.S. Department Of Labor Publishes More Guidance for Workers and Employers Explaining Paid Sick Leave, Expanded Family and Medical Leave Benefits
• U.S. Department Of Labor Announces Additional Guidance Explaining Paid Sick Leave and Expanded Family and Medical Leave Under The Families First Coronavirus Response Act
• U.S. Department Of Labor Publishes Guidance Explaining Paid Sick Leave And Expanded Family and Medical Leave Under The Families First Coronavirus Response Act

During the coronavirus pandemic, the Department of Labor is focused on the safety and health of American workers, assisting our state partners as they deliver traditional unemployment and expanded unemployment benefits under the CARES Act, ensuring Americans know their rights to new paid sick leave and expanded family and medical leave, providing guidance and assistance to employees, and carrying out the mission of the Department.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

WASHINGTON, DC – Secretary of Labor Eugene Scalia issued the following statement regarding Unemployment Insurance claims:

“Today’s report continues to reflect the purposeful sacrifice being made by America’s workers and their families to slow the spread of the coronavirus. The Trump Administration is swiftly implementing the historic relief program the President signed into law last month, providing unprecedented support to American workers and small businesses during these challenging times. Earlier this week, the Department of Labor provided States the essential guidance they need to distribute the enhanced, $600 weekly unemployment benefit under the CARES Act. States have already begun making these payments, and additional States will follow as they complete their preparations. The Department continues to work closely with the States to support this process.”

WASHINGTON, DC – U.S. Secretary of Labor Eugene Scalia issued the following statement on the March 2020 Employment Situation report:

“Today’s report shows 701,000 fewer jobs, and the unemployment rate rising to 4.4%.

“This report reflects the initial impact on U.S. jobs of the public health measures being taken to contain the coronavirus. It should be noted the report’s surveys only reference the week and pay periods that include March 12; we know that our report next month will show more extensive job losses, based on the high number of state unemployment claims reported yesterday and the week before.

“The Trump Administration is taking thoughtful and deliberative actions to support workers and their families while they meet the challenges of this unprecedented health crisis. The legislation signed by President Trump in March provides historic financial support for America’s workers and employers, as well as incentives for businesses to keep their workers on payroll, which will help our economy spring back as soon as possible to the vibrant conditions we had just weeks ago. 

“America’s workers and their families are making purposeful sacrifices to help save lives. This Administration will continue its vigorous efforts to protect the health, safety, and security of the American people as we defeat the coronavirus.”

WASHINGTON, DC – Secretary of Labor Eugene Scalia issued the following statement regarding Unemployment Insurance claims:

“Similar to last week’s unemployment claims numbers, today’s report reflects the sacrifices American workers are making for their families, neighbors, and country in order to ‘slow the spread.’ The Administration continues to act quickly to address this impact on American workers. That includes a rule the Labor Department adopted yesterday to implement the paid leave provisions of the Families First Coronavirus Response Act, and the Department’s work with the States to make available the enhanced unemployment benefits provided in the CARES Act, which the President signed last week. That legislation also contains significant incentives for businesses to retain workers and continue paying them, which will put businesses and workers in a better position to resume work and re-boot the economy once the virus is contained.”

WASHINGTON, DC – Secretary of Labor Eugene Scalia issued the following statement regarding Unemployment Insurance claims:

“This large increase in unemployment claims was not unexpected, and results from the recognition by Americans across the country that we have had to temporarily halt certain activities in order to defeat the coronavirus. The hard impact of this on American workers was anticipated in the bill passed by the Senate last night, which provides hundreds of billions of dollars in unprecedented funding for traditional unemployment insurance and pandemic unemployment assistance, and one-time cash payments of $1,200 or more to Americans making $75,000 or less ($150,000 for those who are married). Perhaps more important, the Senate bill also provides incentives and funding for businesses to keep their workers on payroll, so that, as soon as possible, we can spring back to the strong economic conditions we enjoyed just weeks ago.”

WASHINGTON, DC – Today the U.S. Treasury Department, Internal Revenue Service and the U.S. Department of Labor announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act, signed by President Trump on March 18, 2020.

The act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

Key Takeaways

• Paid Sick Leave for Workers
  For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
• Complete Coverage
  Employers receive 100% reimbursement for paid leave pursuant to the act.
  • Health insurance costs are also included in the credit.
  • Employers face no payroll tax liability.
  • Self-employed individuals receive an equivalent credit.
• Fast Funds
  Reimbursement will be quick and easy to obtain.
  • An immediate dollar-for-dollar tax offset against payroll taxes will be provided
  • Where a refund is owed, the IRS will send the refund as quickly as possible.
• Small Business Protection
  Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed or child care is unavailable in cases where the viability of the business is threatened.

Easing Compliance

• Requirements subject to 30-day non-enforcement period for good faith compliance efforts.

To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.

Background

The act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child-care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and Dec. 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances.

Paid Leave

The act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee’s pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis. An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee’s pay. An employee who is unable to work due to a need to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, may in some instances receive up to an additional ten weeks of expanded paid family and medical leave at 2/3 the employee’s pay.

Paid Sick Leave Credit

For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee’s regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. 

For an employee who is caring for someone with Coronavirus, or is caring for a child because the child’s school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee’s regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Child Care Leave Credit

In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child-care facility is closed or whose child care provider is unavailable due to the Coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee’s regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child-care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Prompt Payment for the Cost of Providing Leave

When employers pay their employees, they are required to withhold from their employees’ paychecks federal income taxes and the employees' share of Social Security and Medicare taxes. The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the IRS.

Under guidance that will be released next week, eligible employers who pay qualifying sick or child-care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child-care leave that they paid, rather than deposit them with the IRS.

The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes and the employer share of Social Security and Medicare taxes with respect to all employees.

If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week.

Examples

If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.

If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments, and file a request for an accelerated credit for the remaining $2,000.

Equivalent child-care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments. 

Small Business Exemption

Small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. The exemption will be available on the basis of simple and clear criteria that make it available in circumstances involving jeopardy to the viability of an employer’s business as a going concern. The Department of Labor will provide emergency guidance and rulemaking to clearly articulate this standard.

Non-Enforcement Period

Department of Labor will be issuing a temporary non-enforcement policy that provides a period of time for employers to come into compliance with the act. Under this policy, Department of Labor will not bring an enforcement action against any employer for violations of the act so long as the employer has acted reasonably and in good faith to comply with the act. The Department of Labor will instead focus on compliance assistance during the 30-day period.

For More Information

For more information about these credits and other relief, visit Coronavirus Tax Relief  on IRS.gov. Information regarding the process to receive an advance payment of the credit will be posted next week.        

WASHINGTON, DC – U.S. Secretary of Labor Eugene Scalia issued the following statement regarding the federal response to coronavirus:

“President Trump took important actions today to protect Americans from the risk of coronavirus. The President’s national emergency declaration will make up to $50 billion available to state and local governments to combat the threat of the outbreak, while new flexibilities for health care providers and governments will facilitate a rapid, nationwide response. Today’s announcements also demonstrate how the President has enlisted the private sector as a powerful partner as he leads the nation in confronting this challenge.”

WASHINGTON, DC – U.S. Secretary of Labor Eugene Scalia issued the following statement on the February 2020 Employment Situation report:

“February’s jobs report again far exceeded expectations with a surge of 273,000 jobs created. With an upward revision of 48,000 jobs in January, 6.9 million new jobs have been added since January 2017.

“In the context of the already robust economy described in the President’s State of the Union address, the job growth from January to February marks the strongest two-month start to the year of this Administration.

 “The unemployment rate dropped last month to 3.5%, the lowest level in 50 years, and has remained at or below 4% for two years. The unemployment rate for women also fell, matching the lowest rate since 1953.

“The blue collar boom continued in February with private sector wages growing 3% year-over-year, and production and non-supervisory workers’ wages increased even faster than managers’. February marks the 19th consecutive month that wages grew at or above 3%.

“The Department of Labor continues to implement the President’s policies that are helping workers and their families thrive, including closing the skills gap through apprenticeships, and bringing more Americans off the sidelines for good, safe, family-sustaining careers.

“The signing of USMCA and Phase I of the China Agreement establish sound footing to continue economic expansion this year and beyond.”