Families First Coronavirus Response Act

Graphic saying "Families First Coronavirus Response Act"

Understanding Families First Coronavirus Response Act

In response to the COVID19 outbreak, the federal government has passed emergency legislation known as the Families First Coronavirus Response Act (the “Act”), enacted on March 18, 2020. The Act includes, among other things, an emergency expansion of the Family Medical Leave Act (“FMLA”) and paid sick leave, along with an employer tax credit. Whitney Thompson & Jeffcoach, LLC has provided the below summary in order to help our clients navigate the requirements of the Act.

Emergency Family and Medical Leave Expansion Act

The Act amends the FMLA to expand employee eligibility, employer threshold and the definition of a qualifying need.  The amended sections are referred to as the Emergency Family and Medical Leave Expansion Act (“EFMLEA”).

Employee Eligibility and Employer Threshold

All private employers with fewer than 500 employees must allow any employee who has been employed for at least 30 calendar days with a “qualifying need” under the Act, defined below, to take EFMLEA leave. Employees taking EFMLEA leave are entitled to the same 12 weeks of job protected leave provided under FMLA. The first 10 days of EFMLEA leave may be unpaid leave, while the remainder must be paid at no less than two-thirds of the employee’s regular rate of pay. Employers may not require an employee to substitute any accrued paid leave for the unpaid leave. However, employees may choose to use accrued vacation days, sick leave, personal leave, or other available paid leave for unpaid time off. While the Act requires employees taking paid EFMLEA leave receive at least two-thirds of the their regular rate of pay, the Act also states that such paid leave shall not exceed $200 per day and $10,000 in the aggregate. At this time, it is unclear how those two provisions will be reconciled.

The Secretary of Labor has the authority to exempt small businesses with fewer than 50 employees from the requirements of the EFMLEA “when the imposition of such requirements would jeopardize the viability of the business as a going concern.” It is not clear at this time how the Secretary of Labor will apply the exemption.

Qualifying Need for EFMLEA Leave

An employee may take EFMLEA leave when he or she is unable to work (or telework) because they must care for the son or daughter under 18 years of age of such employee if the school or place of care has been closed, or the child care provider of such son or daughter is unavailable, due to a public health emergency.

Restoration of Employment Position

Employers with 25 or more employees will have the same obligation to restore the employee to his or her position or a position equivalent to that held prior to commencing EFMLEA leave. Subject to certain requirements, employers with fewer than 25 employees are generally excluded from this requirement if the employee’s position no longer exists following the EFMLEA leave as a result of COVID19.

Emergency Paid Sick Leave Act

The Act also provides for an emergency expansion of paid sick leave requirements, referred to as the Emergency Paid Sick Leave Act (the “EPSLA”). Similar to EFMLEA, all private employers with less than 500 employees that are engaged in commerce shall be subject to the EPSLA.

Under EPSLA an employer shall provide each employee (regardless of how long that employee has worked for employer) with additional paid sick time if the employee is unable to work (or tele work) because the employee: (1) is subject to a government quarantine or a COVID19 isolation order; (2)  has been advised by a health care provider to self-quarantine due to concerns related to COVID19; (3) is experiencing symptoms of COVID19 and seeking a medical diagnosis; (4) is caring for an individual who is subject to a COVID19 isolation order or has been advised as described in paragraph (2); (5) is caring for a son or daughter of such employee if the school or place of care of the son or daughter has been closed, or the child care provider of such son or daughter is unavailable, due to COVID–19 precautions; (6) is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

The paid sick time obligations set forth in the EPSLA shall begin on April 2, 2020 and shall end on December 31, 2020. At this time, it is unclear how EPLSA leave shall be treated in conjunction with EFMLEA leave. However, an employer may not require an employee to use the accrued sick time, or any other paid leave provided by the employer to the employee, before using the additional sick time provided under EPSLA. Any additional paid sick time under EPSLA shall not carry over from 1 year to the next and shall not be payable upon employee’s separation from employment.

Duration and Payment of Paid Sick Time

Full-time employees shall receive 80 hours of paid sick leave. Part-time employees shall receive sick time equal to the number of hours that employee works, on average, over a 2-week period. California employers will be required to pay sick time at the employee’s regular rate of pay.  However, again, there is an apparent cap on the wages an employer must pay under EPSLA at $511 per day ($5,110 in the aggregate) for a use described above in items (1), (2), or (3); and $200 per day ($2,000 in the aggregate) for a use described above in items (4), (5), or (6).

Notice Requirements

The EPSLA requires that each employer post a notice of EPSLA requirements in conspicuous places on employer’s premises. Within 7 days of the enactment of the Act, the Secretary of Labor shall prepare and make publicly available a template of a notice that meets the employer’s EPSLA notice requirements.

Employer Tax Credit for Expanded Paid Sick and Paid Family Leave

Through the end of 2020, the Act provides a refundable tax credit for employers equal to 100% of the EPSLA or EFMLEA wages paid by employers for each calendar quarter. The credits are subject to limitations and any credit claimed will increase the gross income of the employer for the taxable year.

WTJ remains committed to its clients and community during this uncertain time. Our team is closely monitoring the regulations and we will do our best to provide timely updates. Read the full Act here.

Understanding How the Executive Order on COVID-19 Protects Businesses

With all of the evolving news surrounding the novel coronavirus, we wanted to take a moment and let our business clients know there are some silver linings in an Executive Order that was signed Monday, March 16, 2020, by Governor Newsom. While many news articles have solely described it as an Order to protect residents who are renting from being evicted during the COVID-19 emergency, there are several protections for businesses, as well. Here are some of the highlights:

  1. Local Governments can use their police powers to limit residential and commercial evictions for non-payment of rent due to loss of wages and/or business income relating to the COVID-19 pandemic and/or restrictions that relate to the pandemic;
  2. Judicial Foreclosures and Unlawful Detainer actions are suspended until May 31, 2020 in those areas where Local Government has enacted this Order. Note, to protect landlords, back-due rent owed and incurred during this time period must be paid.
  3. Financial institutions holding home or commercial mortgages are to implement an immediate moratorium on foreclosure actions where the non-payment arises out of a substantial decrease in household or business income relating to the COVID-19 pandemic or regulations by any government (local, state or federal) relating to the pandemic.

While it is not yet clear how this will be applied locally, the State is trying to ensure businesses are able to bounce back after being closed and commercial landlords, in return, are able to postpone foreclosure actions and hold onto their properties in the event commercial tenants are unable to pay. Business owners who lose income should also be protected from losing their residential homes at this time in the event Local Governments adopt this Executive Order.

We realize this is a stressful time for businesses and the regulations are changing by the day, so if we can be of any help during this time, we are happy to answer questions. To read the full Executive Order, click here.

NEW HIRES EXPAND PRACTICE AREAS AT LOCAL LAW FIRM

Courtney McKeever and Carl Refuerzo Headshots

FRESNO, Calif. (August 21, 2019) — Local law firm Whitney, Thompson & Jeffcoach has hired three new attorneys to join their team. Carl Refuerzo, Partner, Courtney McKeever, Partner, and Anna Barcus Allen, Associate, join the firm with nearly 50 years of combined experience in transactional business law. These new team members will allow WTJ to expand their services, growing from a boutique litigation firm into a full-service, boutique business firm; a significant development for clients all over the Central Valley.

The new WTJ transactional department will specialize in assisting businesses in all aspects of
corporate and business law, from formation to operation or sale, including agribusiness, mergers and acquisitions, real estate, corporate compliance, and water law. These additions help to round out the business practice area in the firm, as the firm already has a breadth of knowledge concerning commercial law. WTJ regularly counsels its clients on employment compliance issues involving wage and hour violations, as well as anti-harassment and anti-discrimination regulations.

“We saw a high-quality group of lawyers with solid values who enjoyed practicing law in a team
environment. They had a clear vision of the law firm they wanted to be—not the biggest firm, just the best,” said Refuerzo. “WTJ prides itself on providing clients with the best legal advice while maintaining a work-life balance for its lawyers. We found that very attractive.”

Before joining WTJ, Refuerzo, McKeever, and Barcus Allen were with Baker Manock & Jensen PC in
Fresno. Carl Refuerzo, former managing partner at Baker Manock & Jensen, specializes in the areas of corporate and business law, agribusiness, mergers and acquisitions, real estate, and water law. Courtney McKeever’s practice focuses on the formation of corporations, limited liability companies, and partnerships and the representation of business, agribusiness, and healthcare clients with business contracts of all types. Anna Barcus Allen has successfully counseled clients in matters of business, real estate, employment counseling, agriculture, corporate governance, and finance, as well as healthcare. WTJ is thrilled to have these three dedicated, talented attorneys join their team.

This firm expansion comes on the heels of another hire: the Honorable James Ardaiz, retired
Administrative Presiding Justice from California’s Fifth District Court of Appeal. Prior to joining the WTJ team, he was with Baker, Manock & Jensen PC in Fresno since 2011. Since retiring from the Court of Appeal, Justice Ardaiz’s practice has primarily consisted of mediation, arbitration and appellate evaluation, and strategic planning in large litigation. His many years of success are a great asset to WTJ, especially during this period of change and growth.

“We are excited to expand the areas of expertise for our clients with lawyers who share our firm’s core values of teamwork and quality client service,” said Mandy Jeffcoach, a founding Partner. “We look forward to being able to provide all of our clients with the highest level of work, from start to finish, under one roof.”

Buy Your Kid a Pony and Recover Attorney’s Fees

Brown and white pony grazing in a green field bordered by a wooden fence with evergreen trees in the background

Well, kind of.

In the U.S., each side usually pays its own attorney’s fees, unless a contract or statute provides otherwise. Code of Civil Procedure section 1021.9 falls under this second exception to the general rule. It allows attorney’s fees for the prevailing plaintiff in an action to recover damages to personal or real property resulting from trespassing on lands under cultivation or intended or used for the raising of livestock.

This right to attorney’s fees isn’t limited to commercial ranchers or famers (Haworth v. Lira (1991) 232 Cal.App.3d 1362, 1368). Plaintiffs who use property to raise livestock for personal use also may recover attorney’s fees under the statute. A court has found that a landowner’s property was intended for the raising of livestock because it had been used to breed birds, dogs, and horses, as well as to raise hogs and chickens, and the property had substantial facilities for horses. (Kelly v. CB&I Constructors, Inc. (2009) 179 Cal.App.4th 442, 465.) The property was also located in a rural zone. (Ibid.) Unfortunately, your child’s backyard garden, while adorable, probably won’t cut it. (See Quarterman v. Kefauver (1997) 55 Cal.App.4th 1366, 1368-1369.)

Since you are already spending the money for a pony, you might as well build some facilities for it on your property and pick up a couple of chickens and goats, too. That way you can be in a better position to recover attorney’s fees in a trespass case, and your child gets to learn responsibility while taking care of the new menagerie.

Changes for Healthcare Employees

Diverse staff of 8 medical professionals

The California Supreme Court Confirms Healthcare Employees’ Choice to Waive Second Meal Period and Provides Clarity To Healthcare Employers

On December 10, 2018, the California Supreme Court handed a victory to both healthcare employers and their employees, upholding the ability of certain healthcare employees to voluntarily waive their second meal breaks even if they work more than 12-hour shifts. The Supreme Court’s decision ends nearly ten years of litigation and uncertainty by clarifying an apparent discrepancy between the Labor Code and Industrial Welfare Commission (“IWC”) Wage Order No. 5.

Labor Code section 512(a) provides that employees who work more than five hours must be given a 30-minute meal period, and employees who work more than 10 hours must be provided with an additional 30-minute meal period. Section 512 (a) further provides that employees who work no more than 12 hours may waive the second meal period if they have taken the first. By contrast, IWC Wage Order No. 5 section 11(D), adopted on June 30, 2000, provides that health care industry employees who work in excess of 8 hours in a day may waive one of their two meal periods. Unlike section 512(a), section 11(D) has no twelve-hour cap on waivers for second meal periods.

This difference between section 512(a) and section 11(D) led to decades of litigation in Gerard v. Orange Coast Memorial Medical Center, where plaintiffs sought penalties, unpaid wages, and injunctive relief against their former employer. Plaintiffs argued that the defendant’s voluntary meal period waiver policy, which was entirely consistent with section 11(D), violated Labor Code section 512(a) because it allowed employees to waive their second meal period even when they worked shifts lasting longer than twelve hours.
The Court of Appeals initially agreed with plaintiffs in Gerard v. Orange Coast Mem’l Med. Ctr. (2015) 234 Cal. App. 4th 285 (Gerard I). Following the holding in Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004 [the IWC cannot issue new wage orders which conflict with existing provisions of the Labor Code], the Court of Appeals found that section 11(D) and Labor Code section 512 were in conflict and therefore section 512 controlled. Gerard I created potential exposure for thousands of healthcare providers across the state of California who had adopted meal waiver policies for their employees relying on section 11(D).

In 2015 the Legislature responded to Gerard I and passed S.B. 327, which amended Labor Code section 516 to explicitly clarify that IWC Wage Order No. 5 section 11(D) was valid and enforceable notwithstanding section 512 or any other law. Accordingly, while Gerard I ostensibly had no impact on health care providers after S.B. 327 was passed, what was left unclear and unresolved was whether health care providers could be held liable for “violations” which predated S.B. 327.

This ambiguity was clarified by the Supreme Court on December 10, 2018, in Gerard v. Orange Coast Medical Center (2018) 240 Cal.Rptr.3d 757 (Gerard II). In light of S.B. 327, the Supreme Court vacated Gerard I and ordered the Court of Appeal to reconsider its previous decision. Upon reconsideration, the Court of Appeal reversed itself and plaintiffs appealed that decision to the Supreme Court. In Gerard II, the Supreme Court unanimously upheld the Court of Appeal decision holding that at the time section 11(D) was adopted by the IWC on June 30, 2000, Labor Code section 516 gave the IWC broad power to promulgate regulations with respect to meal periods for California workers notwithstanding other sections of the Labor Code. Although the IWC’s authority under section 516 was later amended by the Legislature such that new wage orders could not conflict with section 512, section 11(D) was already effective and, therefore, was always valid and enforceable.

In rendering its decision, the Supreme Court noted that the United Nurses Association of California/Union of Health Care Professionals (UNAC) and Service Employees International Union Local 121RN both supported S.B. 327 and overturning Gerard I because section 11(D) gave healthcare employees greater flexibility and choice.
Accordingly, Gerard II represents a win not only for healthcare providers who no longer have to worry about liabilities which predate S.B. 327, but also for the freedom of healthcare employees to have greater flexibility in taking meal breaks. Gerrard II could also signal the Supreme Court’s willingness to consider employee choice and agency in future employment-related decisions.

Whitney, Thompson & Jeffcoach LLP is a law firm specializing in litigation with proven success in litigating different types of matters including healthcare and employment disputes. Whitney, Thompson & Jeffcoach are pleased to announce the expansion of its employment litigation team with its hiring of Alyson Berg, a former Assistant United States attorney who defended, through appeal, the government in employment discrimination and wrongful termination matters, in addition to providing employment and anti-harassment related training.

Ministerial Exception Not Applicable

A female teacher with a blue shirt is in a classroom, smiling, as her young students work on a project.

Ninth circuit finds no application of the “ministerial exception” to ADA claim of teacher at religious school

Recently, the Ninth Circuit in Biel v. St James School, 911 F. 3d 603 (9th Cir. 2018) held that the “ministerial exception,” an affirmative defense to employment claims for religious employers, did not apply to a teacher’s Americans with Disabilities Act claim. Biel was a fifth grade teacher at St. James School, a Catholic school, who claimed that the non-renewal of her employment contract after she requested a leave of absence to undergo breast cancer treatment was in violation of the ADA. The school moved for summary judgment on the basis that the “ministerial exception,” which precludes application of employment discrimination laws to personnel decisions of religious institutions barred her claim. The employer prevailed at the District Court. The Ninth Circuit reversed and remanded concluding that Biel’s position with St. James School reflected a limited role in religious instruction and the exception did not apply. The court analyzed the four-factor test set forth in Hosanna-Tabor Evangelical Lutheran Church & School v. E.E.O.C., 565 U.S. 171 (2012), and determined that Biel’s position as a lay teacher at a religious school where she taught religion as one of her many subjects to the fifth grade class was insufficient to establish the applicability of the ministerial exception. The court emphasized that although Biel taught religion in the classroom, this was only one factor of the four-factor test that would implicate the “ministerial exception.” Simply holding the position of a school employee who teaches religion is not sufficient to invoke the “ministerial exception” because such a rule would essentially collapse the four-factor test into one determinative factor rather than analyzing the totality of the circumstances.

In a lengthy dissent, Judge Fisher analyzed the employment contract, employee handbook, and Biel’s performance evaluation in concluding that the “ministerial exception” applied. The dissent emphasized that Biel’s position as a teacher at a Catholic school whose contract required a commitment to developing the faith community and a handbook that explained religious development as a goal of the staff showed, under the totality of the circumstances, that the “ministerial exception” applied. Judge Fisher also rejected Biel’s subjective opinions as to the non-religious aspects of her job as insufficient to overcome the application of the “ministerial exception.”

Biel provides guidance for understanding how California courts will likely apply the four-factor Hosanna–Tabor test to employment discrimination claims brought by employees of religious organizations. Employers should evaluate the job duties and documents of the particular employee before raising the “ministerial exception” defense to any employment discrimination claim. Nevertheless, it should be emphasized that the Biel decision is limited to the application of the “ministerial exception” and a religious institution can always file a motion for summary judgment establishing that the employment decision was based on legitimate non-discriminatory reasons, such as pedagogical and classroom management concerns under the facts of the Biel case, rather than any alleged violation of the federal employment discrimination laws.

New Disclosure Requirements for Mediation

Two professionals hold a tablet computer on a wooden desk.

The California Supreme Court in Cassell v. Superior Court (Wasserman, Comden, Casselman & Pearson LLP) (2010) 51 Cal.4th 113, held that the mediation confidentiality encompasses discussions between the attorney and the client, and therefore, the confidentiality provisions of Evidence Code 1115 barred any evidence of what was discussed between the lawyer and the client before and during the mediation. In effect, the Court’s holding barred any sort of malpractice action against the lawyer related to conduct that occurred before and/or during the mediation.

Since that ruling, the California Judicial Council has worked on a proposed change to address the holding in Cassell. The California Legislature enacted Evidence Code 1129 which now requires certain disclosures to be made in writing to a client as soon as reasonably possible before the client agrees to participate in mediation.

Pursuant to Evidence Code 1129, the printed disclosure must be (1) in the preferred language of the client in at least 12-point font; (2) be printed on a single page that is not attached to any other document provided to the client; and (3) include the names of the attorney and the client and be signed and dated by the attorney and the client. Evidence Code 1129 also includes the required language that must be included in the written disclosure. Of note, a lawyer’s failure to comply with this section will not be a basis to set aside any agreement prepared in the course of a mediation.

It is unknown at this point whether a lawyer’s failure to comply with Evidence Code 1129 will open the door to malpractice claims arising out of a mediation. What is clear, though, is the Legislature’s directive to lawyers to make sure that their clients understand the mediation process and are fully advised of their rights.

*Marshall Whitney and Mandy Jeffcoach are partners with the law firm of Whitney, Thompson & Jeffcoach LLP and are Certified Legal Malpractice Law Specialists by the State Bar of California, Board of Specialization. They regularly provide counseling to law firms and lawyers and can be reached at (559) 753-2550 or mwhitney@wtjlaw.com & mjeffcoach@wtjlaw.com.

Retired Justice Joins Whitney, Thompson & Jeffcoach

James Ardaiz Headshot

Whitney, Thompson & Jeffcoach is proud to announce their newest addition, Justice James Ardaiz, retired Administrative Presiding Justice from California’s Fifth District Court of Appeal. Prior to joining the WTJ team, he was with Baker, Manock & Jensen PC in Fresno since 2011.

“I am pleased to join Whitney Thompson & Jeffcoach, an innovative law firm with highly accomplished attorneys and a cutting edge perspective on providing legal services to its impressive client base,” said Ardaiz.

Justice Ardaiz’s experience as a trial and appellate judge includes business, personal injury, governmental policy, environmental, agricultural, estate, and property disputes. He has authored over 2,000 appellate opinions and participated in over 6,000 total opinions, encompassing all areas of the law practiced in the State Courts of California, with precedent-setting opinions in virtually all areas of the law. As a trial judge, he primarily handled general civil and criminal trials.

Since retiring from the Court of Appeal, Justice Ardaiz’s practice has primarily consisted of mediation, arbitration and appellate evaluation, and strategic planning in large litigation, although he does act as counsel to a limited number of commercial clients. His primary case involvement has been in commercial and property disputes, with personal injury being a lesser portion of his case load.

“We are honored to have such an experienced, distinguished former judge join our team,” said Marshall Whitney. “Jim Ardaiz aligns perfectly with our principles and goals for our clients, and his many years of success are a great asset to us.”

Four Partners Leave McCormick Barstow to Establish New Firm

WTJ Whitney Thompson & Jeffcoach logo

Whitney, Thompson & Jeffcoach, LLP

FRESNO, Calif. (February 9, 2018) — Fresno business litigation attorneys Marshall Whitney, Tim Thompson, Mandy Jeffcoach, and Niki Cunningham are leaving McCormick Barstow to establish a new boutique litigation firm named Whitney, Thompson & Jeffcoach, LLP (WTJ), bringing years of experience together to create a new legal practice. The WTJ office is located at 8050 N. Palm Avenue, Suite 110 in Fresno, and the firm can be reached at wtjlaw.com and (559) 753-2550. See direct contact information for the partners below:

Marshall Whitney, Partner
mwhitney@wtjlaw.com

Tim Thompson, Partner
tthompson@wtjlaw.com

Mandy Jeffcoach, Partner
mjeffcoach@wtjlaw.com

Niki Cunningham, Partner
ncunningham@wtjlaw.com