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Families First Coronavirus Response Act Signed Into Law

Date

March 19, 2020

Read Time

5 minutes

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On the evening of March 18th, President Trump signed into law the Families First Coronavirus Response Act, H.R. 6201, which provides for expanded FMLA benefits and paid sick leave for many employees affected by the coronavirus, in addition to other emergency measures to respond to the pandemic.

Note that there have been changes made to H.R. 6201 since we previously reported on this legislation.

What Does The Act Require?

It will require many employers to provide expanded FMLA benefits and paid sick leave to employees who are unable to work for reasons related to the coronavirus pandemic.

Does The Act Provide for Refundable Payroll Tax Credits?

Yes, up to certain limits, to cover the sick leave or FMLA benefits paid to employees pursuant to the Act.

Does the FMLA and Sick Leave Requirements Apply to All Employers?

No, it does not apply to all employers. First, the provisions apply only to employers with 500 or fewer employees. Second, employers of health care providers or emergency responders may elect to exclude their employees from the FMLA and/or sick leave benefits. Finally, following passage of the Act, the Secretary of Labor will have the authority to issue regulations, including regulations that exempt small business with fewer than 50 employees from certain FMLA and sick leave requirements.

The details of these provisions are below.

What Are the Public Health Emergency FMLA Benefits?

The Act will expand benefits under the Family and Medical Leave Act (FMLA) to include 12 weeks of paid job-protected leave for needs related to a public health emergency.

Who is Eligible?

Employees who have been working for at least 30 calendar days.

Eligible employees can use expanded FMLA leave if they are unable to work (or telework) due to a need for leave to care for a son or daughter under 18 years of age because a school or place of care has been closed or a child care provider is unavailable due to a public health emergency.

Will the Leave be Unpaid?

The first 10 days of the leave may be unpaid. Employees may use accrued personal or sick leave during the first 10 days. After the first 10 days, employers must pay the employees at least two-thirds of their regular rate of pay for the number of hours the employee would normally be scheduled to work. However, compensation is capped at $200 per day and $10,000 in the aggregate.

Is the FMLA Leave Job Protected?

Yes, except that employers with less than 25 employees need not restore the employee to their position if the position no longer exists due to economic conditions caused by the public health emergency and the employer has made reasonable efforts to restore the employee to an equivalent position.

The other requirements for FMLA leave appear not to be applicable to leave for this new purpose. In other words, employees do not need to be at a worksite with 50 or more employees within a 75-mile radius, nor do they need to have worked for 12 months and at least 1250 hours.

What Does it Say About Paid Sick Leave?

The Act also will require employers to provide 80 hours of paid sick leave to full-time employees (or the number of hours the employee typically works over a two-week period for part-time workers) to be used for the following coronavirus-related reasons:

  1. The employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19.
  2. The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
  3. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
  4. The employee is caring for an individual who is subject to an order as described in subparagraph (1) or has been advised as described in paragraph (2).
  5. 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 is unavailable, due to COVID-19 precautions.
  6. 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.

Is Compensation Capped at a Certain Amount?

Paid sick leave is calculated based on the number of hours an employee would normally be scheduled to work, except that compensation is capped at:

  • $511 per day and $5,110 in the aggregate for uses (1), (2), or (3); and
  • $200 per day and $2,000 in the aggregate for uses (4), (5), or (6).

 

When will Sick Leave be Available to Employees?

Immediately, regardless of how long they have been employed with the employer. Employers may not require an employee to use other paid leave first before using this paid sick leave and may not require employees to find a replacement employee to cover their hours. Unused sick leave does not carry over to the next year, and an employee’s entitlement to this sick leave ends on the next scheduled work shift immediately following the termination of the need for leave.

As an Employer, What Do I Need to Inform Employees about Their Rights?  

Employers will be required to post a notice informing employees of their rights to leave. The Secretary of Labor will provide a model notice. Employees will be protected from retaliation for use of these paid sick leave benefits

Levenfeld Pearlstein continues to monitor developments regarding COVID-19 and is available to provide advice and guidance—remotely—to employers with questions about managing their workforce during the pandemic.

 

For more resources and LP's response to COVID-19, visit this webpage.


Filed under: Employment & Executive Compensation

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