March 27, 2020
Authored by: benefitsbclp
As the Coronavirus continues to spread and businesses face financial challenges, U.S. employers may look to the impact that a temporary reduction in their business has on their existing U.S. employee benefit programs, adjust those benefits to meet the needs of both employers and employees and consider the impact of the newly created obligations under recently enacted and pending federal legislation. Many employers are grappling with significant reductions in force, the furloughing of employees and/or reducing hours and compensation for employees as a result of this crisis. All of these consequences significantly impact employee benefit plans and policies. In addition, employers may need to make temporary or permanent changes to these employee benefit plans and policies. It is important for employers to review all of their employee benefit plans and policies and service provider contracts to assess the impact these actions may have on employee benefit programs.
With this in mind, we prepared an Alert which includes a summary of issues related to the following areas for you to consider during these uncertain times:
- Service provider contracts;
- Emergency paid sick leave, family leave and related tax credits;
- Health and welfare plans;
- Qualified retirement plans; and
- Incentive compensation and non-qualified deferred compensation plans.