News

As Arkansas begins its second full week of battling COVID-19, telemedicine has emerged as a major weapon in fighting the pandemic. Last week, both the federal and state government issued notices of significant regulatory flexibility for telehealth services in hopes that health care providers can treat a higher number of patients and reduce the spread of COVID-19 by keeping more sick or high-risk patients at home.

The COVID-19 pandemic is causing significant disruptions to normal everyday life, and part of this normal everyday life is retirement planning. This alert is intended to provide guidance to retirement plans in this very unusual time we find ourselves related to retirement plans. The first section is related to defined contribution plans, and the second section is related to defined benefit plans.

Employers familiar with the federal form I9 know that the Authorized Representative must physically inspect the documents presented by the employee so that she may attest the documents appear genuine and relate to the new employee. The employee must also be physically present. That has presented a problem for employers with remote workers. At least for now, there is a temporary solution, but only for those employers working remotely due to the COVID-19 pandemic.

On Wednesday, March 18, 2020 President Donald Trump signed into law House Bill 6201, the Families First Coronavirus Response Act, (FFCRA) which implements extensive efforts to combat the spread of COVID-19, commonly referred to as coronavirus as well as the economic impact of the virus. This new law includes requirements affecting the coverage under employer sponsored group health plans and health insurance issuers in the group and individual market. Specifically, the provisions affecting health plans focus on mandated coverage of COVID-19 testing.

The EEOC and the Department of Labor have posted recent guidance for employers related to COVID-19. Here are key takeaways for employers:

Locally, Governor Asa Hutchinson announced three different forms of economic aid that are or will be available to assist employers: $12 million in community development block grant funding. This is money from a program administered by the U.S. Department of Housing and Urban Development (HUD).  $4 million for a bridge loan program. The governor stated these funds will be targeted to mid-sized companies to make payments and provide working capital to help these businesses remain viable.  SBA Economic Injury Disaster Loans. The governor has declared a state of emergency for Arkansas small businesses and has sent correspondence to the Small Business Administration (SBA) requesting funds under its Economic Injury Disaster Loan Program.

On Wednesday, March 18, 2020, the U.S. Senate approved H.R. 6201, the Families First Coronavirus Response Act (FFCRA), and President Donald Trump signed the bill into law. The final version of the law contains significant revisions to the draft bill we reported on earlier this week. The FFCRA, as passed, includes two provisions regarding paid leave: 1) the Emergency Family and Medical Leave Expansion Act; and 2) the Emergency Paid Sick Leave Act. Both provisions will go into effect Thursday, April 2, 2020 (15 days after signing the bill). They expire on December 31, 2020.