Phase 2 – Workforce Compliance Update and Employer StrategyFor South Sound Business Leaders

June 10, 2020

Today’s Conversation

► Strategy First: During COVID and Beyond

► Phase II WA Employee Benefit Considerations

► Q&A

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Today’s Panelists

► Thomas Showalter, HR Services Director, Alera ConnectHR

► Bob Bentley, Compliance Consultant, Alera West Region

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Crafting Your Employer Strategy

GAIN & MAINTAIN FAMILIARITY

WITH...

► National trends & regulations

► Washington trends & regulations

► County/municipal trends &

regulations

STEP 1: GET YOUR BEARINGS

Community & Regulatory Landscape

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► Landscape shifts daily

► Go to the source data:

Washington

https://coronavirus.wa.gov/information-

for/business

Tacoma-Pierce County

https://www.tpchd.org/healthy-people/human-

coronavirus

U.S.

https://www.cdc.gov/coronavirus/2019-ncov/

STEP 1: GET YOUR BEARINGS

Community & Regulatory Landscape

More...

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Source: CDC

STEP 2: ASSESS YOUR BUSINESS

Employees, Customers, Suppliers…

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► What’s Working Well?

► What’s Not?

► What Must I Do?

► What Should I Do?

► What Can/Can’t I Do?

► What Are My Objectives?

► What Stands In My Way?

STEP 2: ASSESS YOUR BUSINESS

Impact (so far…) Varies (a lot) by

Business

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Negative Impact Neutral Impact Positive Impact

► Operations discontinued/limited

► Revenue down/gone

► Business could not/did not adapt

► Employees furloughed/laid off/quit

► Business recovery uncertain

► “Reopening” critical/existential for

short-term survival, adaptation for

long-term survival

► Operations continued

► Revenue stable

► Business adapted

► Employees working

► Business surviving, not thriving

► Ongoing adaptation critical to weather

the “second wave” (aka recession)

► Operations stepped up for demand

► Revenue increased

► Business adapted

► Employees working, hiring

► Business thriving

► Adaptation critical to protect gains,

weather the second wave

STEP 3: THINK FORWARD

The Road To Economic Recovery Is Unchartered Territory

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2.) Hockey Stick

Quick return to “normal”

Assumes

vaccine/treatment/miracle

Assumes business/consumer

super resiliency

1.) Slow & Steady

Slow, measured recovery

Assumes outbreak is

contained/managed

Assumes business/consumer resiliency

3.) Multi-variant Tracks

Stuttering, varied, long-term

recovery by location, industry

Assumes outbreak progress &

setbacks Assumes varied

consumer/business resiliency

Most likely?

STEP 4: WEIGHT BENEFITS, COSTS,

RISKS OF DIFFERENT OPTIONS

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Benefits Costs Risks

1. Think Forward vs. Back To [Normal, Work…)

2. Differentiate Can’s, Must’s, and Should’s

3. Adapt Beyond Survive to Thrive

STEP 5: CRAFT YOUR

DURING/POST COVID STRATEGY

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STEP 5a: WORKFORCE STRATEGY

CONSIDERATIONS

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TALENT STRATEGY

Employee/Candidate Perspective Policies & Compliance

Employer Brand Employee & Supervisor Training

Remote/On-site Worker Ratio Communications

Productivity/Management Equipment & Technology

Culture/Engagement

WORKSITE STRATEGY

Facility Size & Layout

Screening, Testing, Responding

Equipment & Technology

Site/Human Hygiene

Policies & Compliance

Create a Playbook to Execute Strategy

► Many organizations were thrust into

remote work unprepared and

rushed to equip their workforce

► It’s likely to be part of many

organizations’ workforce strategy

during and after COVID

► Consider training for your

supervisors and remote workers

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Creating Your Playbook: HR Considerations

Remote Worker Considerations: Training

Creating Your Playbook: HR Considerations

Execute Your Strategy & Preempt Questions

► Can we require people to return?

► Can we test employees and/or take

temperatures?

► What do we do if they refuse?

► Is the organization liable in the case of illness,

death breakout?

► Can we ask employee health-related questions?

► What if our employees work in another

workplace (clients)?

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Compliance Concerns

► FFCRA: Families First Coronavirus Response Act – Emergency Paid Sick Leave and Emergency Paid Family Leave

► CARES: Coronavirus Aid, Relief, and Economic Security Act – Telehealth, OTC Drugs & COVID-19 Testing

► EBSA: Employee Benefits Security Administration – branch of DOL with oversight authority over health and welfare

plans

► EBSA Disaster Relief Notice 2020-01 eases the burden for health and welfare plans (and retirement plans) to provide

notices and disclosures required under ERISA and the Internal Revenue Code by clarifying that:

► Neither the plan nor the employer will violate ERISA for failing to timely furnish a notice, disclosure, or document

that must be furnished between March 1, 2020, and 60 days after the announced end of the COVID-19 National

Emergency

► This timeframe is referred to as the “outbreak period” – if Emergency ends 6/30, Outbreak ends 8/29

► Relief extends to SPDs, SMMs, SBCs, but use caution – employers must act in good faith and furnish docs as soon as

reasonably practicable

Returning to Work – Benefit Plan Considerations

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► DOL & IRS: Final Rule Put a Hold On Deadlines, Restart 60 Days After the Emergency Ends

► 30 Day Special Enrollment Period (birth, marriage adoption / 60 Day Medicaid & CHIP Enrollment

► 60 Day COBRA Election Period

► Deadline for making COBRA Premium Payments (normally 30 Days)

► Deadlines for submitting benefit claims, appeals, and external claims reviews

► IRS Notices 2020-29 and 2020-33 allow employers to amend Section 125 plans to allow:

► An increase in the carryover from $500 to $550 on Health Care FSAs

► Employees to make mid-year changes in Health Care and Dependent Care FSAs

► Employees make mid-year election benefit plan changes

► Extended time periods to incur claims

► Dental and Vision carriers providing rebates, premium credits or lower renewal increases

► Treat these like an ACA Medical Loss Ratio rebate

► Look at plan document to see if rebates/credits must be proportionally shared with employees

► PCORI Fee Due 7/31/2020, Status of Form 720

Returning to Work – Benefit Plan Considerations – 2

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Q&A

Need help?

We can help shape your strategy and playbook while

also providing hands-on support to execute.

Wilson Albers Comprehensive Employer Services

► Employee Benefits Services

► Human Resource Services

► Retirement Plan and Wealth Management Services

► Property & Casualty

Get in touch with us at info@wilsonalbers.com for

more information.

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If you have additional questions:

Thomas Showalter – tshowalter@alerachr.com

Bob Bentley – bob.bentley@aleragroup.com

Allyson Thomas – allysont@alerachr.com

Joey Mertlich – joeym@wilsonalbers.com