March 19, 2020   |  LEGAL ALERT
 

Congress Passes Families First Coronavirus Response Act

 

On March 18, Congress passed, and President Trump signed into law, the Families First Coronavirus Response Act (FFCRA). The FFCRA is a bipartisan effort to help employers and individuals alike in managing pay, benefits, and business considerations during the COVID-19 pandemic. The focus of this alert is the impact of FFCRA on employer-sponsored benefits and paid leave. The paid leave provisions of the Act apply to employers with less than 500 employees.  They are effective within 15 days from date of enactment and expire at the end of 2020, unless extended.

 

Mandated Free Testing

 

FFCRA mandates free COVID-19 testing from all group health plans, including fully insured and self-funded plans, as well as grandfathered plans. All group health plans must waive cost-sharing, prior authorization requirements, and other medical management as it relates to COVID-19 testing. This includes provider office visits, urgent care, emergency room, and other healthcare visits that are for the purpose of evaluating or administering testing.

 

Emergency FMLA

 

The FFCRA provides for up to 12 weeks of job-protected leave under the Family and Medical Leave Act (“FMLA”) for a “qualifying need related to a public health emergency.” These provisions generally apply to private-sector employers with under 500 employees and all government employers.  (There are exceptions for employers with less than 50 employees if the required leave would jeopardize the viability of their business.)  This new law expands the leave for employees who have been employed at least 30 days, overriding, for these purposes, FMLA’s general requirement that employees must be employed for at least 12 months to be covered. For these purposes, a “qualifying need” exists if an employee is unable to work or telework because he/she/they need to care for a child who is under 18 years if their school or place of care has been closed, or the child care provider is unavailable, due to a public health emergency, such as COVID-19.

 

This Emergency FMLA rule also requires employers to pay employees after 10 days.  Employees on leave are to be paid at two-thirds of their regular rate of pay, based on normally scheduled hours, up to $200 per day and to a maximum of $10,000.

 

Emergency Paid Sick Leave

 

FFCRA requires employers with less than 500 employees to provide paid sick leave to any employee who is unable to work or telework because the employee:

    1. Is subject to a federal, state, or local quarantine or isolation order related to COVID-19;
    2. Has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
    3. Has COVID-19 symptoms and is seeking medical diagnosis;
    4. Is caring for an individual who is subject to a quarantine or isolation order;
    5. Is caring for a child if the school or day care center has been closed, or the child care provider is unavailable, due to COVID-19 precautions; or
    6. Is experiencing any other substantially similar condition specified by the regulatory agencies.

 

Overall, employees are entitled to at least 80 hours of paid sick leave (prorated for part-time employees). An employee is immediately eligible on date of hire. An employer cannot require an employee who is eligible for paid sick leave to find a replacement or be involved in finding a replacement for their scheduled work shift. Paid leave is limited to $511 per day ($5,110 total) for an employee’s own illness or quarantine (paid at the employee’s regular rate), and $200 per day ($2,000 total) for leave to care for others (paid at two-thirds of the employee’s regular rate). Failure to pay the required sick leave is treated as a failure to pay minimum wages in violation of the Fair Labor Standards Act.

 

Tax Credits

 

FFCRA offers some relief to employers who are now required to provide paid leave. The credit is available for up to $200 per day for Emergency FMLA and up to $511 per day for Emergency Paid Sick Leave payments. The credit is calculated on an individual employee basis for a total of 10 days paid leave. Employers should maintain records on employees who qualify for leave, which includes the reason for the leave, and the days taken in order to substantiate qualifications for the credit.

 

There is also another tax credit for employers who continue to provide health coverage to employees who take Emergency FMLA or Emergency Paid Sick Leave. Employers may receive a credit for the amount paid toward maintaining the health plan, for the amounts excluded from an employee’s gross income as it related to federal income tax. This is in addition to wages paid for qualifying leave, but it cannot exceed the credit available for Emergency FMLA and Emergency Paid Sick Leave. This credit is to be requested on quarterly tax returns. It will be included in an employer’s gross income.

 

What Employers Should Expect Next

 

We expect additional guidance at the state and federal levels that may impact employee benefit plans, and potentially more state leave requirements. It is also important for employers to stay up-to-date on their state and municipal notices, as some are providing for insurance requirements. In addition, employers need to be cognizant of local and state emergency regulations that may affect how employers in certain industries, such as food services, operate during a public health emergency.

 

For more information on COVID-19, see:

·         https://www.cdc.gov/coronavirus/2019-ncov/index.html

·         https://www.who.int/emergencies/diseases/novel-coronavirus-2019

 

 

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About the Authors.  This alert was prepared for [INSERT AGENGY NAME] by Marathas Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act.  Contact Stacy Barrow or Alyssa Oligmueller at sbarrow@marbarlaw.com or aoligmueller@marbarlaw.com
 

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Benefit Advisors Network and its members are not attorneys and are not responsible for any legal advice.  To fully understand how this or any legal or compliance information affects your unique situation, you should check with a qualified attorney.

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About TIS Insurance Services, Inc.

TIS Insurance Services, Inc., an independent, privately owned insurance agency, has been helping clients find the right insurance policies since 1945. Headquartered in Knoxville, TN, TIS proudly serves more than 6,000 individuals and businesses across 48 states. Recognized nationally as a Top 100 Agency by Insurance Journal Magazine, TIS has the expertise and resources required to deliver tailored and effective insurance solutions.

 

Insurance journal names top insurance agencies in the United States

Knoxville, TN – TIS Insurance Services, Inc. has once again ranked among the best of the best in the Insurance Journal’s list of the Top 100 Independent Insurance Agencies in America; ranking 74th in the Top 100 selected from over 30,000 agencies in the United States.

The Top 100 list is ranked by total property and casualty (P&C) agency revenue for 2016 and comprises only those agencies that are privately-owned firms whose business is primarily retail; not wholesale.

Agencies making the Top 100 are known to attract the best insurance partners, customers and prospective employees. The Insurance Journal reported, “Those who make the list are the agencies others look up to and everyone wants to do business with or even merge with because they are among the best and most successful.” All the Top 100 agencies included in the report cooperated in the process.

About TIS Insurance Services, Inc.

TIS Insurance Services, Inc., an independent, privately owned insurance agency, has been helping clients find the right insurance policies since 1945. Headquartered in Knoxville, TN, TIS proudly serves more than 6,000 individuals and businesses across 48 states. Recognized nationally as a Top 100 Agency by Insurance Journal Magazine, TIS has the expertise and resources required to deliver tailored and effective insurance solutions.

 

United Heartland Agency of the Territory 2016 award presented to TIS CEO Ed Sims (left) by UH Charlotte Regional Director of Business Development Mike McKeon.

New Berlin, Wis. – United Heartland, a leading national workers’ compensation insurance company, proudly announces three 2016 Agency of the Territory winners. The top agencies are:

  • TIS Insurance Services, Inc. – Knoxville, Tenn.
  • MJ Insurance, Inc. – Indianapolis, Ind.
  • Holmes Murphy & Associates (HMA) – Kansas City, Mo.

“These agencies support United Heartland’s high-touch customer service approach to workers’ compensation and are valued partners with our organization,” said Steve Cooper, president of United Heartland.  “We truly value the strong relationship we have had with these key agency partners and are honored to recognize them as United Heartland’s top regional agencies in 2016.”

“We are honored to receive the recognition of United Heartland’s Agency of the Territory award. It is very important to us as agents to place our clients with a carrier that shares the same strong values and beliefs as do we at TIS Insurance Services,” said TIS Chief Executive Officer Ed Sims.

Leading agency partners exhibit outstanding written premium, strong customer retention and a healthy cumulative loss ratio. These agencies join M3 Insurance of Madison, Wis., who was earlier named United Heartland’s Agency of the Year.

United Heartland offers a comprehensive, results-oriented approach to delivering responsive and valued workers’ compensation solutions directed toward:

  • Sustainable safety improvements to reduce and eliminate injuries
  • Innovative claims management centered on quality outcomes and effective expense management
  • An aggressive and comprehensive return-to-work approach
About United Heartland

United Heartland is the marketing name for United Wisconsin Insurance Company, a member of AF Group.  Insurance policies may be issued by any of the following companies within AF Group: Accident Fund Insurance Company of America, Accident Fund National Insurance Company, Accident Fund General Insurance Company, United Wisconsin Insurance Company, Third Coast Insurance Company or CompWest Insurance Company.

About TIS Insurance Services, Inc.

TIS Insurance Services, Inc., an independent, privately owned insurance agency, has been helping clients find the right insurance policies since 1945. Headquartered in Knoxville, TN, TIS proudly serves more than 6,000 individuals and businesses across 48 states. Recognized nationally as a Top 100 Agency by Insurance Journal Magazine, TIS has the expertise and resources required to deliver tailored and effective insurance solutions.

 

TIS Insurance Services, Inc. (TIS) was recently appointed to The Hanover Insurance Group’s President’s Club, an elite group of independent insurance agencies from across the country. Agencies named to the company’s President’s Club are recognized for delivering   outstanding value to their customers through insurance expertise and responsive service. TIS Insurance Services, Inc.  was one of only 125 independent agencies recognized with this distinction across the country.

The Hanover partners with a select group of 2,200 independent agents nationwide. This is the third consecutive year TIS has been recognized with this selection. “The team at TIS Insurance Services, Inc.  truly understands the needs of its customers and delivers a top-of-the-line customer experience, providing expert insurance counsel and high-quality service,” said John C. Roche, president, Hanover Agency Markets. “We’re proud to partner with TIS and appreciate its commitment to going above and beyond to serve its customers.” The agency was formally recognized for its inclusion in the company’s President’s Club at a national business conference in Laguna Beach, Calif. TIS Chief Financial Officer Kim Wilson was in attendance. “This is a recognition of the value we place on providing specialized and innovative insurance solutions that meet the unique needs of our customers,” said Donald B. Wake, President at TIS Insurance Services, Inc.  “We are proud to be recognized with this honor for the 3 consecutive years.”

About TIS Insurance Services, Inc.

TIS Insurance Services, Inc., an independent, privately owned insurance agency, has been helping clients find the right insurance policies since 1945. Headquartered in Knoxville, TN, TIS proudly serves more than 6,000 individuals and businesses across 48 states. Recognized nationally as a Top 100 Agency by Insurance Journal Magazine, TIS has the expertise and resources required to deliver tailored and effective insurance solutions.

 

Christy Ball and Alexis Psihogios

Knoxville, TN – A leading insurance professional organizational recently recognized Christy Ball, CIC and Alexis Psihogios, CIC of TIS Insurance Services, Inc. for their dedication and ongoing leadership in the insurance industry.

The Society of Certified Insurance Counselors (CIC) honored Ball and Psihogios, both Knoxville natives, for ten years of successfully maintaining the Certified Insurance Counselor (CIC) designation, denoting significant commitment to advanced knowledge and customer services.

“This honor is an acknowledgement of the priority TIS Insurance Services places on education and professional growth,” cited the Society’s President, Dr. William T. Hold, CIC, CPCU, CLU. “Customers, associates, and the insurance professional as a whole benefit from such a strong commitment to continuing education.”

The CIC Program is nationally recognized as the premier continuing education program for insurance professionals, with programs offered in all 50 state and Puerto Rico. Headquartered in Austin, Texas, the Society of CIC is a not-for-profit organization and the founding program of The National Alliance for Insurance Education & Research.

About TIS Insurance Services, Inc.

TIS Insurance Services, Inc., an independent, privately owned insurance agency, has been helping clients find the right insurance policies since 1945. Headquartered in Knoxville, TN, TIS proudly serves more than 6,000 individuals and businesses across 48 states. Recognized nationally as a Top 100 Agency by Insurance Journal Magazine, TIS has the expertise and resources required to deliver tailored and effective insurance solutions.

 

Insurance journal ranks top agencies nationwide

Knoxville, TN – TIS Insurance Services, Inc., TIS Insurance Services, Inc. has once again been listed in the Insurance Journal’s Top 100 Independent Insurance Agencies in America listing.

The Top 100 list is ranked by total property and casualty (P&C) agency revenue for 2015 and comprises only those agencies that are privately-owned firms whose business is primarily retail, not wholesale.

All the Top 100 agencies included report and cooperated in the process. The result is a glimpse at some of the nation’s most successful privately-held independent insurance agencies and brokerages. TIS Insurance Services ranked 75th overall in the Top 100 selected from over 30,000 insurance agencies in the United States.

About TIS Insurance Services, Inc.

TIS Insurance Services, Inc., an independent, privately owned insurance agency, has been helping clients find the right insurance policies since 1945. Headquartered in Knoxville, TN, TIS proudly serves more than 6,000 individuals and businesses across 48 states. Recognized nationally as a Top 100 Agency by Insurance Journal Magazine, TIS has the expertise and resources required to deliver tailored and effective insurance solutions.

 

Rob McMillin and John Sims join the ownership team

Knoxville, TN – TIS Insurance Services, Inc., a Top 100 independent insurance agency, recently named Rob McMillin and John Sims as its newest shareholders. “Rob and John have earned ownership in the agency through their hard work, determination, and through the embodiment of the TIS Promise of putting our clients first. I know they will be great leaders going forward,” said TIS Chairman Bill Thomas.

McMillin joined the TIS team in 2001 as a broker and further trained at The National Alliance/Chubb Insurance Group Broker Training School in Somerset, NJ. Within the HealthCare Services Division, McMillin has been both sales producer and new account developer. He holds a Business Administration degree in Finance from The University of Tennessee.

Sims joined the TIS HealthCare Services Division in 2007 as a sales producer and has focused on acquiring new healthcare business throughout the country. Sims has a vast amount of experience with workers’ compensation self-insured business.  He is currently working toward his Certified Insurance Counselor (CIC) designation. Sims also holds a Business Administration degree in Finance from The University of Tennessee Knoxville.

“The addition of Rob and John to our shareholder group is exciting news especially as TIS continues to experience significant growth and expansion in both the local and national markets, said CEO Ed Sims. “Their extensive industry knowledge and experience within one of the larger TIS divisions is invaluable to our success.”

Both McMillin and Sims are vice presidents within the HealthCare Services Division at TIS. They join the current shareholder group that includes Bill Thomas, Chairman; Ed Sims, CEO; Morgan Thomas, President/Commercial; Taylor Preston, President/HealthCare Services; and Ben Kelly, President/Employee Benefits.

About TIS Insurance Services, Inc.

TIS Insurance Services, Inc., an independent, privately owned insurance agency, has been helping clients find the right insurance policies since 1945. Headquartered in Knoxville, TN, TIS proudly serves more than 6,000 individuals and businesses across 48 states. Recognized nationally as a Top 100 Agency by Insurance Journal Magazine, TIS has the expertise and resources required to deliver tailored and effective insurance solutions.