News & Insights

Daily DigestMarch 24, 2020by Stanton LawDaily Digest 3/24/2020

Navigating the FLSA Tip Credit: Who and What Qualifies, Valid Tip Pools, and Other Things You Need to Know

Good morning,

Here’s today’s entry in our daily digest designed to keep you updated with the ways the COVID-19 outbreak may affect your business.

• The general trend continues to be towards more shutdowns, with states closing down non-essential businesses for the time being. Maryland, Michigan, and Ohio now join many other states that have shut down non-essential businesses. If you believe your business falls within the non-exempt businesses that would be subject to a shutdown, and your state has not ordered a mandatory shutdown, prepare now for more telework or advise employees that a mandatory closure may be around the corner. Clear, frequent, and honest communication should be the rule. Additionally, Trump announced that California, New York, and Washington are all receiving federal assistance to combat the spread of COVID-19 through the implementation of National Guard troops. Several other states are also receiving National Guard aid but in smaller numbers.

• Yesterday, Georgia Governor Brian Kemp announced a ban on gatherings of more than 10 people and ordered a shelter in place for the “medically fragile.”

o Georgia employers: If you have not implemented remote work, do so now. Especially if your office has more than 10 employees. This is not a recommended or mandatory shutdown like some states have implemented, but we anticipate that’s coming next.

• The Department of Labor, the Treasury Department, and the IRS released a plan for implementing paid sick leave for employees mandated under the Families First Coronavirus Response Act, as well as accessing the tax credits that businesses can use, ostensibly, to quickly recoup the cost of providing the COVID-19-related paid leave.

o We are currently working alongside our partners at Ascent CPA Group to provide information on how employers can effectively use these tax credits and what this looks like. Stay tuned for more information.

If you missed our webinar detailing the coronavirus outbreak’s impact on employers and how best to mitigate it, you can review the video and presentation slides here.

At Stanton Law, we are glad to be one of your resources for daily updates on COVID-19’s effect on your business. If you have any questions regarding this or any other legal matter, please do not hesitate to contact our experienced Atlanta employment attorneys at 404-531-2341 or online.