As businesses and their employees are experiencing the effects of the COVID-19 pandemic, a new employment regulation has been passed. The Families First Coronavirus Response Act (FFCRA) expands Family and Medical Leave (FMLA) and paid sick leave.
When?
- The FFCRA goes into effect from April 1, 2020 through December 31, 2020.
Who is eligible?
- Employees of private sector employers with fewer than 500 employees
Certain public sector employers
What?
- Employees are eligible for up to two weeks of fully or partially emergency paid sick leave related to COVID-19 regardless of how long they have been employed
- Employees who have been employed at least 30 days prior to the leave request may be eligible for an additional 10 weeks of expanded and partially paid FMLA (for reason 5 below)
- Emergency responders and healthcare providers are excluded from this definition if it threatens business sustainability
- Additionally, businesses with less than 50 employees are exempt if the additional leave threatens the business
- The first 10 days of emergency FMLA can be unpaid, however, and employee may choose to use accrued paid time off, accrued sick leave, or the 2 weeks of emergency paid sick leave
COVID-19 related leave includes employees who are unable to work or telework because they:
- Are subject to local, state, or federal quarantine or isolation order
- Have been advised by a health care provider to self-quarantine
- Are experiencing COVID-19 symptoms and seeking medical diagnosis
- Are caring for an individual subject to quarantine, isolation order, or self-quarantine
- Are caring for their own child whose school or place of care are closed due to COVID-19
- Are experiencing other substantially similar condition specific for the US Department of Health and Human Services
Paid Leave Entitlements:
- Up to 2 weeks (80 hours or part-time employee’s two-week work equivalent) of paid sick leave based on the higher amount of their regular pay rate or the state/federal minimum wage:
- 100% for reasons 1, 2, and 3 above, up to $511 daily, $5,110 total
- 66% for reasons 4 and 6 above, up to $200 daily, $2,000 total
- Up to 12 weeks of paid sick leave and expanded, paid FMLA at 66% for reason 5 above, up to $200 daily, $12,000 total
Business Tax Credits:
- Refundable tax credits will be provided to employers required to provide emergency paid sick leave
- These tax credits are allowed against the employer allocation of social security taxes
- If employer costs for qualifying sick leave or FMLA exceed the taxes they would owe, employers will be reimbursed
- A refundable tax credit equal to 100% of the qualified emergency sick leave wages paid by employers each quarter will be provided to employers