National Association of Manufacturers COVID-19

Impact on Small & Medium- Manufacturing Operations: Best Practices.

On Friday, March 27,2020 NAM/MLC-hosted a special COVID-19 call. How are smaller and mid-sized manufacturers handling the impact of COVID-19 on their operations? Hear from other manufacturers how they are managing changes to their operation, as well as from the Small Business Association on ways that they are ready to assist during challenging times.

Below are the questions and answers posted to the chat during the call.

We would like to thank Ecolab for generously allowing us to use their webinar platform for this NAM and MLC hosted COVID-19 webinar series. Learn more about the resources they're making available to manufacturers combating the virus at www.ecolab.com/coronavirus.

Q&A Session for  COVID-19 Impact on Small & Medium- Manufacturing
Operations: Best Practices

Session number:  618698751 Date:  Friday, March 27, 2020 Starting time:  8:05 AM

 

 

Q:  What if the child is not school age? Employee with a daughter who is 3 -- her daycare is closed

A:  A child who is not school age is covered under FFCRA.  Employees with children under 18 can take paid leave if their school or daycare is close 

 

 

 

Q:  What burden of proof is required for individuals staying home due to the school closures? 

 

A:  A "bona fide" reason as defined by the Department of Labor.
Please see this website for more information https://www.dol.gov/agencies/whd/pandemic 

Q:  Good morning, How can unemployment insurance be cancelled when employer paid sick leave 
benefits take effect on April 1st?  

A:  Traditionally, employees receiving paid leave are not unemployed and therefore cannot receive unemployment benefits.  However, each state is responding to COVID-19 differently and we encourage you to check with your state's unemployment agency.   

 

Q:  Do the paid leave requirements apply to manufacturing businesses which are classified as Critical Infrastructure Sector? 

 

A:  Yes.  The only exemptions under the paid leave requirements are for first responders and healthcare workers. 

 

Q:  Can you share that website for comment period on the leave relief? 

 

A:  https://ffcra.ideascale.com/ 

 

Q:  Can you please share that web address on the screen for wage & hour assistance? 

 

A:  https://www.dol.gov/agencies/whd/pandemic 

Q:  Both DOL & IRS have mentioned insurance reimbursements being part of the credits, but I have 

not heard anything about that from other sources.  Questions: does it cover employer-portion only?  employee portion?  both?

 

A: Please see this IRS announcement for more information Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

A:  Please see this IRS announcement for more information

 

Q: The insurance coverage is mentioned by both DOL and IRS. 

 

A:  Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

 

Q:  How does FFCRA interact with FMLA? Do we need to do FFCRA leave and then FMLA?  

 

A:  All leave required by the FFCRA will be on top of any existing leave policies that your company offers.  This website answers these questions directly 
https://www.dol.gov/agencies/whd/fmla/pandemic 
                                                                                                    
 

Q:  How can we see OSHA's stance current and speak into the classification of COVID as an OSHA Recordable?

 

A:  Here is the current OSHA guidance https://www.osha.gov/SLTC/covid-19/standards.html 

 

Q:  When does 80 hours of pay apply? I heard that it doesn't apply until leave after April 1. 

 

A:  Correct.  The leave requirements under FFCRA go into effect April

 

Q:  what date does the government review for full-time employee headcount? 

 

A:  Those questions are answered in this WHD FAQ https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 

 

Q:  es during the 8 week period?  In other words, if someone is earning 625,000 a year but during 

the 8 week period only received 96,153 (625,000/52 weeks x 8 weeks), would we include the entire 
96,153 or would it have to be 15,385 (100,000/52weeks x 8 weeks)? 

 

A:  WHD has provided guidance to help determine wages required https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave 

Q:  What are the measurement periods for determining your average employee headcount?  For example, 

do you compare March 2019 with June 2020 when determining if headcount was reduced or not?

 

A:  This FAQ should help answer how you determine 500 employees https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 

 

 

Q:  We operate a holding company of 3 subsidiaries.  None of the subs have more than 500 employees, but the total of all three is more than 500.  We file a consolidated federal tax return.  DO we qualify for any of these programs? 

 

A:  WHD has tried to answer that question at the link below and we encourage you to consult your employment attorney on further questions https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 

 

Q:  We might have more than 500 employees at a single location.  Can you please clarify? 

 

A:  500 applies to your total business https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 
                                                                                                    
 

Q:  How is the headcount number figured out?  Is it the average headcount last year?  And when is the date of verification of headcount for determination of how employer did in retaining workforce level?  Is that 12/31/2020? 

 

A:  WHD has tried to answer this question https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 

 

Q:  Will the tax credits apply to the payroll taxes themselves? 

 

A:  For paid leave tax credits please see this IRS announcement Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

 

Q:  Have you considered, or are you considering temperature checks of employees?  If so, what would 

be the protocol?  If not, why not?  

 

A:  The Equal Employment Opportunity Commission has issued guidance that employers are allowed to implement temperature checks.  Please make sure you are 
still following EEOC and ADA requirements https://www.eeoc.gov/facts/pandemic_flu.html 

Q:  When I read OSHA's current stance for recordable of COVID cases, I don't see how we would 

classify any exposure as an OSHA recordable https://www.osha.gov/SLTC/covid-19/standards.html  

 

A:  It would be considered recordable if it meets all three of the reasons listed on the OSHA website.  We are working with OSHA to make this more clear and workable.  
https://www.osha.gov/SLTC/covid-19/standards.html 

 

Q:  We started giving our employees paid sick time on 3/23 here in NYC. Will we not be reimbursed? 

 

A:  IRS announced that leave starting 3/20/2020 will be eligible Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave                        
 

Q:  Can a furloughed employee do any work or come to his place of employment  

A:  That depends on what type of furlough is offered and the requirements of your state.  https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemploy ment-benefits.aspx 
                                                                                                    

 

 

Q:  Did I hear correctly earlier that a COVID-19 case at work could be considered a “reportable incident” by OSHA.  With community spread already in place, and asymptomatic cases traveling around how would it ever be proven that it was caused by the employer 

A:  Yes, correct.  We are working with OSHA to update this given the community spread and how difficult it would be to prove where someone contracted it.  Right now, it 
is considered recordable https://www.osha.gov/SLTC/covid-19/standards.html      

 

 

Q:  The sentence itself does not even make sense and it's repeated on the IRS website.

A:  Employers receive 100% reimbursement for paid leave pursuant to the Act, including health insurance costs. 
                                                                                                    
 

Q:  WIll a temporary layoff or furlough affect eligibility of possible loan forgiveness?

 

A:  There is a provision that allows you to re-hire folks that may have been let go and essentially re-qualify for forgiveness.  Ultimately it is company-specific and depends on when you instituted layouts and when you hire them back.

 

 

Q:  Are temporary employees (from temp agencies) included in the 500 employee count?  we use them 

at varying levels throughout the year so how do you count them if they are included? 

 

A:  Please see this guidance from WHD and let me know if you have further questions https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 
                                                                                                    

 

Q:  Do Foreign employees count? 

A:  For the paid leave requirements, no, only employees in the US and territories count toward the 500 number 
                                                                                                    

Q:  Are temporary employees through a temp agency included in the 500 employee count threshold? 

 

A:  Please see this guidance from WHD and reach out to me if you have more questions https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 
 

 

Q:  When will CARES Payroll Protection Loan policies and procedures be available to SBA lenders? In other words how quick can we get the funds/ 

 

A:  The SBA has 15 days to write the regs implementing the program. We expect them to act VERY quickly, so the regs could be done in a week or so. After that, the 
lenders have latitude to make lending decisions and start making loans 

 

Q:  What is the definition of 500 employees?  As of today? 

 

A:  For paid leave requirements, WHD has issued guidance on how to determine 500 employees https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 
                                                                     

Q:  We have over 500 employees but our NAICS code classifies us as a small business.  It would appear that we are eligible for the Paycheck Protection Program.  However, I have heard conflicting information that we might not be eligible because we have more than 500 employees

 

A:  There are exceptions in the bill for companies with >500 employees but are otherwise designated small businesses, so it is possible that you would be eligible 
                                                                                                 

 

Q:  Are the only variables to receiving a full loan forgiveness payroll numbers and rates of pay?  Or any other variables to know if the loan will be forgiven? 

A:  If you spend the funds on eligible purposes and don't cut headcount or pay then you should be eligible for forgiveness 

 

Q:  Charles - where can we get details on the payroll protection program?  Who will administer this - SBA? 

 

A:  SBA should have resources soon after the bill passes the House