Quick Guide: What Entrepreneurs & Workers Need to Know About the Families First Coronavirus Response Act Effective Today
If you are an entrepreneur wondering how to care for your employees, or a worker worried about whether you have any rights to paid time off during this unprecedented public health crisis, you should know about the Families First Coronavirus Response Act (FFCRA). The bill goes into effect today, April 1, 2020.
The bill provides paid leave benefits to almost all employees of private employers and nonprofit organizations with fewer than 500 employees, and most government employers of any size
The following is a quick guide to the FFCRA. Please contact me if you need help understanding how this law, and related local and state laws apply to you or your business.
The bill contains two main provisions:
(1) paid family leave for workers with children at home due to school closures;
(2) paid sick leave for workers for a variety of COVID-19 related reasons, including caring for themselves, a family member, or a child home from school.
Emergency Family and Medical Leave Expansion Act
Eligibility
When minor child’s school or child care service is closed due to a public health emergency.
Have been on payroll for at least 30 calendar days.
Amount of Leave
Up to 12 weeks of job-protected leave with group health benefits continuation.
Benefits
2/3 regular rate of pay.
Up to 12 weeks of leave. First 10 days unpaid, but may substitute paid sick leave or PTO.
Cap: $200 per day; $10,000 aggregate.
Tax credit
Employers are entitled to a refundable tax credit equal to 100% of the qualified paid family leave wages paid by employers for each calendar quarter.
Exceptions
Large businesses are exempt if they employ 500+ employees.
Small businesses only when complying would “jeopardize the viability of the business.”
Job restoration requirement is limited for small businesses if the job no longer exists due to changing economic or operating conditions caused by public health emergency.
Health providers, including hospitals and nursing homes.
Emergency Paid Sick Leave Act
Eligibility
A worker is eligible if:
1. the employee is subject to a Federal, State, or local quarantine or isolation order related to COVID–19, or is caring for an individual subject to such order;
2. the employee has been advised by a health care provider to self-quarantine due to concerns related to COVID–19, or is caring for an individual how has been advised to self-quarantine;
3. the employee is experiencing symptoms of COVID–19 and seeking a medical diagnosis;
4. the employee 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;
5. the employee is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services.
Amount of Leave
Full-time employees: 80 hours.
Part-time employees: a number of hours equal to the number of hours that the employee works, on average, over a 2-week period.
Benefits
2/3 regular rate of pay if caring for family member or child whose school is closed. Capped at $200 per day; $2,000 in the aggregate (over a two week period).
100% of regular rate of pay if unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis. Capped at $511 per day; $5,110 aggregate (over a 2-week period).
Exceptions
Large businesses are exempt if they employ 500+ employees.
Small businesses only when complying would “jeopardize the viability of the business.”
Health providers, including hospitals and nursing homes.
Tax credit
Employers are entitled to a refundable tax credit equal to 100% of the qualified sick leave wages paid by employers for each calendar quarter.
Posting Requirements & Department of Labor FAQ
Employers must post or distribute this DOL poster to workers by April 1, 2020.
Finally, today, the IRS published Wednesday an updated FAQ document detailing the tax credits available to small and midsize businesses that must provide emergency paid leave under the Families First Coronavirus Response Act (FFCRA).
The Department of Labor has also issued a Frequently Asked Questions discussing many of the questions I have heard from clients since this bill was signed.