The Families First Coronavirus Response Act
The Families First Coronavirus Response Act:
What Does it Mean for Employers?
By Adam Rodriguez, Esq.
COVID-19 issues are unfolding unfold rapidly and the government is taking swift and decisive action to deal with the impact. Employers have to be prepared quickly understand and implement these new policy decisions.
The newly enacted Families First Coronavirus Response Act (“FFCRA”) requires small employers (less than 500 employees) to provide employees with paid sick leave and paid family leave for COVID-19 related reasons. Both changes go into effect April 2, 2020 and will remain in place until the end of 2020.
Paid Sick Leave
The FFCRA provides for up to 80 hours of paid sick leave to full-time employees (less hours for part-time employees) for COVID-19 related reasons.
- Who is covered: Employers with less than 500 company-wide employees.
- Who is eligible: All employees of a covered employer, regardless of length of service.
- When does coverage apply: The reasons include that the employees are: (1) subject to quarantine or isolation order; (2) advised by a healthcare provider to self-quarantine; (3) experiencing symptoms and seeking medical diagnosis; (4) caring for an individual subject to such a quarantine or isolation order; (5) caring for their child because their ordinary child care provider is unavailable; or (6) experiencing any other similar condition specified by the Secretary of HHS, in consultation with the Secretary of the Treasury and the Secretary of Labor.
- How much must be paid: The amount that must be paid to employees, which is reimbursable through federal tax credits, is capped at $511 per day and a $5,100 aggregate for reasons 1-3, and $200 per day and a $2,000 aggregate for reasons 4-6.
Paid Family Leave
The FFCRA also amends the Family and Medical Leave Act (“FMLA”) to provide 12 weeks of job-protected leave to an employee that is unable to work because of a child care need caused by COVID-19.
- Who is covered: Employers with less than 500 company-wide employees.
- Who is eligible: Employees who have been working for at least 30 days. The normal, much more stringent, FMLA eligibility rules would not apply.
- When does coverage apply: When employees are unable to work (or telework) so that they may care for their children, if schools or daycares are closed because of a public health emergency, i.e., COVID-19.
- How much must be paid: The first ten days are unpaid, but the employees can use their accrued time during this period. After ten days, employees receive 2/3rds of their regular pay. Payments are capped at $200 per day and a $10,000 aggregate. The employers are entitled to a fully refundable tax credit.
- Who is exempt: Employers of healthcare providers or emergency responders may elect to exclude their employees.
Adam Rodriguez is Counsel at Bleakley Platt & Schmidt, LLP, a full-service law firm in Westchester County, New York. Mr. Rodriguez focuses his practice in the areas of litigation, intellectual property and real estate. Previously, he was the Director of Real Estate for Westchester County, where he negotiated commercial real estate transactions valued at over $100 million. Prior to his appointment as Director of Real Estate, Mr. Rodriguez defended the County of Westchester in one of the highest-profile HUD enforcement actions in United States history. He has also served as a law clerk to two federal judges, and worked as a litigator at a large law firm in New York City.
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