Press Release: 2020-03-27

COVID-19 News and Updates

COVID-19 News and Updates

ECONOMY HEALTH CARE COSTS HR & EMPLOYMENT LAW NEWS | March 13, 2020
By: Chris Geehern

State and federal governments continue to pass measures and issue orders to address the medical and economic fallout from the COVID-19 issue.

Here is a summary for employers.

March 26, 2020

Governor Baker Requests Major Disaster Declaration –

Governor Charlie Baker submitted a written request to President Trump for a Major Disaster Declaration for Massachusetts under the federal Stafford Disaster Relief and Emergency Assistance Act, to allow the state to access additional federal resources.

The request includes access to the following two programs administered by the Federal Emergency Management Agency (FEMA):

Three new Department of Public Health Orders:

  • Pharmacy Practice: To ensure pharmacists are able to support the health-care system’s response to COVID-19, this emergency order makes several changes regarding pharmacy practice, including expedited approval for pharmacists licensed in other states to practice in Massachusetts, and allowing the remote processing of prescriptions by pharmacy technicians.  Read the Order
  • Determination of Need: This emergency order exempts health-care facilities from the requirement that they submit a Notice of Determination of Need for certain activities that will support their response to COVID-19. Read the Order|Read the Guidance
  • Nurse Staffing: To ensure hospitals have the flexibility they need to respond to the COVID-19 outbreak, this emergency order exempts hospitals from certain nurse-staffing requirements, while requiring that they must ensure that staffing levels remain adequate to meet patients’ needs, and staff is trained and competent to meet the needs of their patients. Read the Order

COVID-19 Essential Services-Related FAQs Supplied by Mass.gov

MassHousing $5 Million to State Rental Assistance for Families in Transition (RAFT) Program 

RAFT assists households of all sizes and configurations with financial assistance up to $4,000 per household to help preserve current housing or move to new housing. Funding is distributed by partner Regional Administering Agencies. All offices are operating remotely and are taking applications and questions.

Berkshire Housing Development Corporation
Community Teamwork Inc.
Franklin County Regional Housing and Redevelopment Authority
Housing Assistance Corporation
Way Finders
Metro Housing|Boston
RCAP Solutions
South Middlesex Opportunity Council
NeighborWorks Housing Solutions
Lynn Housing Authority and Neighborhood Development
Central MA Housing Alliance

Executive Order Pertaining to Commercial Property Owners

Governor Baker issued an Executive Order to suspend relevant permitting deadlines and extend out the validity of state permits. It applies to a wide range of state approvals and clarifies that all approvals shall toll during the State of Emergency. It shall remain in effect until rescinded or until the state of emergency is terminated, whichever happens first. Update provided by NAIOP Massachusetts.

AIM “30 on Thursdays” Webinar Links

Department of Unemployment Virtual Town Halls

  • Friday March 27 at 9:00AM
  • Saturday March 28 at 12:00PM – Spanish Town Hall

Additional Resources for Employers

National:  3.3 Million have filed for unemployment benefits

US Senate passes CARE Act by a Unanimous 96-0 Vote

  • Unemployment Insurance Highlights – $260 billion for increased unemployment assistance, including up to four months of full replacement wages up to certain limits for individuals who lose a job or are furloughed.
  • Pandemic Unemployment Assistance (PUA) provision would create a new program modeled on Disaster Unemployment Assistance that would provide unemployment benefits to individuals who do not qualify for regular unemployment compensation and are unable to work because of the COVID-19 public health emergency. Qualified individuals may include self-employed workers (including gig workers and independent contractors), part-time workers, and those with limited work histories. The changes to increase the size of regular unemployment benefits and make them available for additional weeks will also apply to benefits received through the PUA program. PUA will be state administered but fully federally funded. The program is effective through December 31, 2020.
  • Pandemic Emergency Unemployment Compensation would make an additional 13 weeks of federally funded unemployment compensation for individuals who have exhausted their state unemployment benefits available immediately through December 31, 2020.
  • Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations would reduce the amount by which nonprofits, Indian Tribes, and governmental entities are required to reimburse states for benefits paid to their workers who claim unemployment insurance by 50 percent through December 31, 2020.
  • Emergency Increase in Unemployment Compensation would add $600 in Federal Pandemic Unemployment Compensation to every weekly unemployment benefit, effective until July 31, 2020. This $600 benefit will be taxable (like regular unemployment benefits), but it will be disregarded in determining Medicaid or CHIP eligibility.
  • Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week would allow states to enter into an agreement with the federal government to receive full reimbursement for the total amount of unemployment compensation paid to individuals for their first week of unemployment, provided that the state does not have a waiting week between applying for and receiving benefits, effective until December 31, 2020.
  • Temporary Financing of Short-Time Compensation in States with Programs in Law would provide 100 percent federal reimbursement to states for payments made under qualifying short-time compensation programs (also known as work sharing programs) through December 31, 2020.

State and Local Aid Highlight 

  • Coronavirus Relief Fund provides $150 billion to states for necessary expenditures incurred in responding to the coronavirus outbreak – including building field hospitals and buying ventilators – as well as to offset the cost of other essential government services not budgeted for and incurred between March 1, 2020 and December 31, 2020. The U.S. Treasury must allocate funds to states within 30 days based on a state’s population, although every state will be guaranteed at least $1.25 billion. The bill reserves 45 percent of the state’s total allotment for localities of 500,000 or more. These localities may apply directly to the Treasury for their relative share by population of this amount.

Tax Policy Highlights

  • Employee retention credit- a new temporary refundable 50 percent employee retention credit for employers subject to full or partial business suspension due to the COVID-19 emergency, or for employers whose gross receipts have significantly declined due to COVID-19, to be applied against the employer’s share of payroll taxes. The amount of qualified compensation (including health benefits) eligible for the credit with respect to any individual employee is limited to $10,000.
  • Payroll taxes- Delays in payment of certain applicable 2020 employer payroll taxes from date of enactment through December 31, 2020. Half of the deferred tax is to be paid by December 31, 2021, and the remainder by December 31, 2022.
  • Corporate AMT credit refunds- Accelerates the ability of companies to receive refunds of AMT credits in tax years beginning in 2019. Alternatively, companies could elect to claim the entire refundable AMT credit in tax years beginning in 2018.
  • Section 163(j) changes increase the 30 percent adjusted taxable income limitation to 50 percent for tax years beginning in 2019 and 2020. For 2019, this provision does not apply to partnerships – partners may deduct 50 percent of their distributive share of the partnership’s excess business interest in 2020 without regard to Section 163(j). The provision also allows a taxpayer to elect to use its 2019 adjusted taxable income for its 2020 limitation.

More information: PWC and The Tax Foundation

The stimulus measure now goes to the House of Representatives where it is anticipated there will be strong bipartisan support. The legislation is expected to pass by voice vote, a move that would allow for the House to avoid compelling its members to return to Washington for a recorded roll call vote.  The House will take up the measure beginning on Friday beginning at 9 am.

U.S. Department of Labor provides Additional Guidance Explaining Paid Sick Leave and Expanded Family and Medical Leave Under Families First Coronavirus Response Act

Updates on the Defense of Production Act

In early March the Congressional Research Service updated research and provided Congress “The Defense Production Act of 1950: History, Authorities, and Considerations for Congress.” As of this post on March 26, 2020, President Trump and the administration have not utilize the full powers of the act, but have used it as a means to encourage and seek businesses voluntary efforts to provide items such as masks, ventilators and other personal protective equipment (PPE) among other critical supplies.

Key provisions include:

  • Title I: Priorities and Allocations, which allows the President to require persons (including businesses and corporations) to prioritize and accept contracts for materials and services as necessary to promote the national defense.
  • Title III: Expansion of Productive Capacity and Supply, which allows the President to incentivize the domestic industrial base to expand the production and supply of critical materials and goods. Authorized incentives include loans, loan guarantees, direct purchases and purchase commitments, and the authority to procure and install equipment in private industrial facilities.
  • Title VII: General Provisions, which includes key definitions for the DPA and several distinct authorities, including the authority to establish voluntary agreements with private industry; the authority to block proposed or pending foreign corporate mergers, acquisitions, or takeovers that threaten national security; and the authority to employ persons of outstanding experience and ability and to establish a volunteer pool of industry executives who could be called to government service in the interest of the national defense.