Families First Coronavirus Response Act

On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (the “Act”) which, among other things, provides paid sick leave, free Coronavirus Disease 2019 (“COVID-19”) testing, and employer tax credits, as well as expands food assistance and unemployment benefits.  Below is an overview of key points certain employers should be aware of.

 

• Emergency Paid Sick Time
  • Employers with fewer than 500 employees are required to provide employees with paid sick time who are unable to work (or telework) due to a need for leave because:
    • The employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19.
    • The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
    • The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
    • The employee is caring for an individual who is subject to an order described above or has been advised as to self-quarantine.
    • 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 childcare provider of such son or daughter has been closed, or the child care provider of such son or daughter is unavailable, due to COVID-19 precautions.
    • The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
  • Amount of Paid Sick Time:
    • Employers are required to provide (i) full-time employees with 80 hours of paid sick time and (ii) part-time employees with a number of hours equal to the number of hours that the employee works on average over a 2-week period.
    • Businesses with fewer than 50 employees may opt out from providing an employee paid sick time if the reason is that the employee has to care for a son or daughter as a result of the school or place of care as closed due to COVID-19 precautions and if doing so would jeopardize the viability of the business as a going concern.
  • Compensation:
    • In general, an employee’s compensation during their paid sick time is calculated pursuant to the Act and may vary depending on the reason the employee needs to use paid sick time.  The Secretary of Labor is expected to issue guidance on calculating the amount of paid sick time.
  • Restrictions on employers:
    • Among other things, the employer cannot (i) force the employee to find a replacement for when the employee takes their paid sick time, (ii) force an employee to use other paid leave provided by the employer before using the paid sick time provided under the Act, or (iii) discharge an employee who takes leave in accordance with the Act.
• Emergency Family and Medical Leave Expansion
  • As an expansion to the Family and Medical Leave Act:
    • Eligible employees who work for an employer with fewer than 500 employees may take leave if the employee is unable to work (or telework) because they must care for a child whose school or care provider is closed or unavailable due to COVID-19.
    • However, businesses with fewer than 50 employees may be exempt if the imposition of the requirements would jeopardize the viability of the business as a going concern.
  • Compensation:
    • There first 10 days of leave may be unpaid. The employee may elect, or the employer may require the employee, to substitute accrued paid time off for unpaid leave. Compensation after the first 10 days is calculated pursuant to the Act.
  • Job Restoration:
    • In general, eligible employees who take emergency paid leave are entitled to be restored to the position they held when leave commenced or to obtain an equivalent position with their employer.  Employers with fewer than 25 employees are exempt from this regulation provided certain conditions are met.
• Tax Credits for Paid Sick and Paid Family and Medical Leave
  • Employers are entitled to tax credits through 2020 to offset costs associated with qualified sick leave wages, with limitations, and health care expenses affiliated with emergency and sick leave wages.
  • The Act also provides eligible self-employed individuals with a tax credit to offset costs associated with qualified sick leave.

 

This law goes into effect 15 days from signing and expires December 31, 2020. However, the law is subject to change depending on the actions of lawmakers within the upcoming weeks.

 

Please contact us for assistance with reviewing or updating your company’s relevant policies to ensure you are in compliance with the Families First Coronavirus Response Act.