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March 20, 2020
2020-0633

Colorado employers in certain industries must provide paid leave for employees affected by COVID-19

The Colorado Department of Labor and Employment published emergency rules that temporarily require employers in certain industries to provide four days of paid sick leave to employees with flu-like symptoms while awaiting COVID-19 (novel coronavirus) testing. The emergency rules took effect on March 11, 2020, and continue for 30 days, or longer if the state of emergency declared by Governor Polis continues. (News release, Colorado Department of Labor and Employment, March 11, 2020.)

The Colorado Health Emergency Leave with Pay Rules ("Colorado HELP" 7 CCR 1103-10) requires up to four days of paid sick leave to employees being tested for COVID-19 in the following industries: leisure and hospitality; food services; child care; education, including transportation, food service, and related work at educational establishments; home health, if working with elderly, disabled, ill, or otherwise high-risk individuals; and nursing homes and community living facilities.

The requirement is not in addition to sick leave an employer already provides and does not cover wage replacement should an employee test positive and require quarantine resulting in lost work time and wages. Workers are covered regardless of pay rate or method (hourly, weekly, piece rate, etc.); the daily pay during leave is either their established daily rate or, if their pay fluctuates, their average daily pay for the past month.

"Colorado is acting swiftly to contain the spread of this virus. These steps are important for individuals who work with vulnerable populations like older Coloradans and people with underlying health issues. When workers who might have Coronavirus lack paid sick leave, it poses a great risk to our ability to protect the public," said Gov. Polis. "People want to do right by their fellow Coloradans and stay home when they are ill. But they shouldn't be forced between doing what's best for our community or missing rent. I am asking the entire private sector of Colorado to voluntarily offer paid sick leave pending Coronavirus testing results so that we can collectively do our part to contain the spread of the virus."

For frequently asked questions regarding the emergency rules, go here.

Governor announces emergency shutdown of bars and restaurants

On March 16, 2020, the Colorado governor announced that the Colorado Department of Public Health and Environment issued a public health order to, as of March 17, 2020, at 8:00 a.m., close bars, restaurants, gyms, theaters and casinos for 30 days. Businesses are allowed to provide food and beverages using delivery service, window service, walk-up service, drive-through service, or drive-up service.

Affected workers may file for unemployment benefits. The Colorado Department of Labor and Employment has released information regarding the filing for UI benefits by affected workers, including frequently asked questions. The Department has not yet released emergency regulations that would waive the one-week waiting period or provide employers with noncharge of UI benefits resulting from the requirement to shut down under the public health order.

Further protections for employees may follow

Governor Polis's state of emergency executive order included directives for the Department to 1) engage in emergency rulemaking for temporary paid sick leave and 2) identify additional supports and wage replacement such as access to unemployment insurance.

Other wage replacement options, including state unemployment insurance (UI), are still under review by the Department to determine the specifics for compensation for those who test positive. Under current state law, UI benefits are only available to workers who have become unemployed through no fault of their own. The Department is currently reviewing options to expand eligibility under existing rules.

Under Colorado wage and hour law, The Department's Division of Labor Standards and Statistics has authority under existing state law to promulgate rules when "[t]he welfare of the state of Colorado demands that workers be protected from conditions of labor that have a pernicious effect on their health and morals, and it is therefore declared … that inadequate wages and unsanitary conditions of labor exert such pernicious effect" (C.R.S. 8-6-101(1)).

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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