Daniel L. Morgan
In order to make tax-deductible contributions to a health savings account, an individual must be covered under a high deductible health plan and have no disqualifying health coverage.
High deductible health plans are required to have a minimum annual deductible and a maximum out-of-pocket expense limit.
In a notice issued today, Notice 2020-15, the Internal Revenue Service (“IRS”) stated that “due to the unprecedented public health emergency posed by COVID-19,” an individual would not lose their ability to make tax-deductible health savings account contributions because they are covered under a plan that otherwise qualifies as a high deductible health plan that provides for the payment or reimbursement of expenses (including expenses for care and the purchase of items) “related to testing for and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible.”
The practical effect of the IRS Notice is that, if a health plan agrees to pay COVID-19 testing or treatment expenses under a high deductible health plan, without requiring individuals covered under the plan to have first met the annual minimum deductible, participants in the plan will not lose their eligibility to make deductible health savings account contributions.
In light of indications that health insurers may be willing to waive deductibles and co-pays for COVID-19 expenses, the Notice comes as timely and welcome news.
Valerie D. Ringel and Anna Svensson
Recently, the New York City Council passed a bill aiming to protect employees seeking temporary changes to their work schedules in certain circumstances. The bill permits employees to make two temporary schedule changes per calendar year, such as paid time off, working remotely, swapping or shifting work hours and unpaid leave when certain personal circumstances arise, including circumstances that would constitute a basis for permissible use of safe time or sick time. Continue reading “Additional Protections for Temporary Schedule Changes for Employees under New York City Law”
Stephanie Gantman Kaplan
In recent years, employers have used unpaid interns to perform many duties otherwise completed by paid employees. Determining whether to classify a worker as an unpaid intern or employee under the Fair Labor Standards Act (“FLSA”) can be tricky for employers—and getting it wrong can have, and has had, serious consequences. With the recent boom in class action litigation by interns claiming misclassification, employers have to be careful.
Earlier this month, the U.S. Department of Labor (“DOL”) announced the adoption of a new standard to determine who is an “intern” under the FLSA, opting to utilize the “primary beneficiary” analysis already used by several federal appellate courts. Continue reading “DOL Adopts Employer-Friendly Standard to Assess If Workers Are Interns or Employees”
Blank Rome’s Labor & Employment practice is pleased to announce the launch of our new blog, Blank Rome Workplace, which will offer insight and analysis on emerging employment issues across varying industries, ranging from new regulatory developments to litigation and enforcement trends.
“Labor and employment issues are complicated and evolving at an ever-quickening pace. Every day, federal, state, and local legislatures and courts change the ground rules for properly employing people,” said Scott Cooper, Partner and Co-Chair of Blank Rome’s Labor and Employment practice. “Blank Rome Workplace will provide timely updates, analysis, and practical advice to clients, outside counsel, and human resource executives seeking to navigate the ever-changing landscape.” Continue reading “Blank Rome Launches Labor & Employment Blog”