Families First Coronavirus Response Act (FFCRA)
The Families First Coronavirus Response Act (FFCRA or Act) requires most employers with less than 500 employees to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from the April 1, 2020 through December 31, 2020.
Which Employers are Affected?
The paid sick leave and expanded family and medical leave provisions of the FFCRA apply to employers with fewer than 500 employees. All employers under 500 will be required to provide the 10 days of paid sick leave and up to 10 weeks of partially paid extended family leave for certain situations.
Small Business Exemption
Currently there is no exemption for the 80 hours Emergency Paid Sick Leave but there is for the extended paid family leave.
Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide extended paid leave due to school closings or childcare unavailability if the leave requirements would jeopardize the viability of the business as a going concern.
Emergency Paid Sick Leave
Up to 80 hours paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined due to a Federal, State, or local government order or advice of a health care provider, and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
Up to 80 hours paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine due to a Federal, State, or local government order or advice of a health care provider, or care for a child under 18, whose school or child care provider is closed or unavailable for reasons related to COVID-19.
Extended Paid Family Leave and Paid Sick leave
Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.
Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or childcare unavailability if the leave requirements would jeopardize the viability of the business as a going concern.
Which Employees are Eligible?
Under the FFCRA, an employee qualifies for paid sick time if the employee is unable to work (or unable to 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;
- Has been advised by a health care provider to self-quarantine related to COVID-19;
- Is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
- Is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
- Is caring for a child whose school or place of care is closed (or childcare provider is unavailable) for reasons related to COVID-19; or
- Is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.
Under the FFCRA, an employee qualifies for expanded family leave if the employee is caring for a child whose school or place of care is closed (or childcare provider is unavailable) for reasons related to COVID-19.
How is Pay Calculated?
For leave reasons 1 – 3: employees taking leave shall be paid at either their regular rate or the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in the aggregate (over a 2-week period).
For leave reasons 4 – 6): employees taking leave shall be paid at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a 2-week period).
For leave reason 5: employees taking leave shall be paid at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period—two weeks of paid sick leave followed by up to 10 weeks of paid expanded family and medical leave).[6]
Tax Credits Applicable
Covered employers qualify for dollar-for-dollar reimbursement through tax credits for all qualifying wages paid under the FFCRA. Qualifying wages are those paid to an employee who takes leave under the Act for a qualifying reason, up to the appropriate per day and aggregate payment caps. Applicable tax credits also extend to amounts paid or incurred to maintain health insurance coverage. For more information, please see the Department of the Treasury’s website.
Posting Requirements
Employer Notice: Each covered employer must post in a conspicuous place on its premises a notice of FFCRA requirements. (attached below)
Prohibitions Against Employment Actions
Employers may not discharge, discipline, or otherwise discriminate against any employee who takes paid sick leave under the FFCRA and files a complaint or institutes a proceeding under or related to the FFCRA.
This situation is ever changing so check with the latest information before taking any actions or applying for tax credits.