On March 18, President Trump signed the Families First Coronavirus Response Act. The bill provides paid sick leave, tax credits, free coronavirus testing, expands food assistance, and increases Medicaid funding and unemployment benefits. The new mandate is the first of its kind offering paid sick leave.
As a small business, what do you need to know about the new law?
If you are a private employer with fewer than 500 employees, you are subject to these new changes. The law goes into effect on April 1, 2020 and sunset on December 31, 2020.
There are two major parts of this new law that employers should focus on:
Emergency Paid Sick Leave Act
Employers are required to provide 80 hours of sick time to full time employees unable to work due to the following effects of COVID-19:
- Subject to governmental quarantine or isolation order
- Has been advised to self-quarantine by a health care provider
- Experiencing COVID-19 symptoms and seeking a diagnosis
For those employees that are in quarantine or caring for an individual that is quarantined, employers must pay the employee’s regular rate of pay up to $511/ day.
- Caring for an individual who is quarantined
- Caring for their child because of a school or child care closure
- Experiencing a “substantially similar condition” specified by HHS.
Employers are required to pay not less than 2/3 of employee’s regular pay – maximum amount of compensation $200/ day while caring for their child or other individual.
All employees are eligible for these benefits – there is no wait time for new employees. Employers must provide notice of this new act to their employees. Since many of us are not in a physical office, I recommend sending an email to employees by April 7, 2020 with information about the new law.
Emergency Family and Medical Leave Expansion Act
The Emergency Family and Medical Leave Expansion Act adds a new qualifying absence to FMLA. Employers must provide up to 12 weeks of paid leave after 10 days of unpaid leave period to employees that cannot work because they are caring for their 18 or under child. Employee may substitute other leave benefits (vacation, sick) during initial period.
Employees that have been employed for 30 calendar days are eligible for these expanded FMLA benefits. The law also requires the employer to restore employee’s former position following public health emergency leave unless the business is less than 25 employees.
A few additional items to keep in mind with this new law:
- These new benefits will not be retroactive.
- For employers with fewer than 50 employees, the guidance is not very clear. The DOL has said small employers are subject to the extended coverage of FMLA with the exception of an employee caring for an individual subject to quarantine/isolation order or caring for under 18 child due to school or daycare being closed.
- Employees that have been furloughed or laid off cannot collect on these benefits.
The above is to serve as a guide when navigating the Emergency Paid Sick Leave and Emergency Family and Medical Leave Expansion Acts, based on information available March 30, 2020. As the situation with COVID-19 continues to unfold across the U.S., the legal landscape and subsequent employer requirement may continue to evolve, based on additional federal regulatory guidance, new laws or court challenges.
If you’d like additional guidance on these matters, assistance tracking and remaining in compliance with these issues, or help in crafting statements for your company and employees, please contact us.
Maple Grove HR Consulting 