Employers most worried about workers as economy reopens
Amid the phased reopening of Tennessee’s economy, local employers face a series of tough decisions as they start bringing employees back into the workplace. These considerations range from how and when to bring back employees who have been working remotely or furloughed to what changes need to be made to the physical workplace to ensure the safety of employees and customers.
During the month of March, Littler Mendelson, the world’s largest labor and employment law firm representing management, conducted a survey of more than 900 companies based in North America to understand what employers are focused on and what actions they are taking as a result. The survey reveals that employers are primarily anxious about what most people would consider the “right” thing: their employees’ welfare.
Among respondents’ top concerns were the safety of their employees, customers and workplaces and issues related to employee leave and sick pay.
What if someone tests positive?
Almost all respondents (96%) were concerned about office, factory or store closures if an employee or customer tests positive for the coronavirus. Well ahead of government orders requiring protective gear for workers in “essential businesses” and requiring everyone else to stay home, most respondents were already taking concrete steps to limit exposure to and spread of the virus. In addition to ensuring a safe and hygienic workplace, several respondents indicated that their companies were restricting travel, canceling events and meetings and encouraging telework. Nearly two-thirds of respondents had already instituted deep-cleaning practices in their workplaces.
Determining whether to pay employees during periods of absences was a concern for 89% of respondents. Employers are trying to manage a wide range of issues involving their employees’ ability to work during this pandemic and to be fair to their employees, despite their often widely differing circumstances.
Along these lines, Littler attorneys have fielded countless scenarios for Nashville employers focused on how to take care of their employees. Among the most common are how to fairly and legally supplement unemployment insurance benefits in the event of a furlough or layoff without creating unintended tax or other issues for employees; continue health care benefits during a period of reduced work hours in contradiction of the terms of the company’s benefit plan; make pay adjustments for certain employees rather than eliminate jobs; and implement interestfree hardship loans to employees.
Congress has provided some relief
In late March, Congress intervened to help relieve some of the burden of these decisions by enacting the Families First Coronavirus Response Act, which provides some protection to employees who miss work due directly or indirectly to COVID-19. A second law, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, provides six potential options to help companies stay afloat and pay their employees, and additional federal funding is expected soon. At the time of the survey, fewer than half of the respondents were considering or implementing layoffs, but as the pandemic has continued, the number of unemployment benefits claims has increased significantly. As a result, companies are seeking legal assistance in complying with federal and state notice requirements for layoffs, many with the hope of rehiring soon.
The survey revealed other concerns on the minds of employers, such as honoring employee privacy while also confirming employees are healthy in the workplace and accommodating employees who are more susceptible to the virus or who are worried about coming into contact with the virus if they show up for work. And, although it ranked at the bottom of the list, 83% of employers who responded were wary of unintentional discrimination against a legally protected class of workers creeping into workplace decisions or conduct during these unprecedented times.
The COVID-19 pandemic has introduced a new kind of stress and has changed the way we live and work. As the state gets back to work and returns to a new normal, Tennessee employers are adjusting alongside their employees in a way that puts their “most valuable resources” first.
Jennifer Robinson is the Nashville office managing shareholder and co-chair of Littler’s Hospitality Industry Group. She can be reached at jenrobinson@littler.com. Theresa Hammond is of counsel in Littler’s Nashville office. She can be reached at thammond@littler.com.