The Families First Coronavirus Response Act was signed into law last night. The Act provides for emergency paid sick pay, emergency expansion of family and medical leave, and tax credits for employers. Highlights of the Act are outlined below and apply to employers with fewer than 500 employees.

Emergency Paid Sick Leave:

Under certain circumstances, employers could be required to pay employees for up to two weeks of sick leave when a national health emergency is declared, as is the case now with coronavirus. Circumstances include:

• Employee subject to a federal, state or local quarantine or isolation order;

• Employee has been advised by a health care provider to self-quarantine;

• Employee is experiencing symptoms of COVID-19 and seeking medical diagnosis;

• Employee is caring for an individual under quarantine or self-isolation directions;

• Employee is caring for a child whose school or care facility is closed; or

• Employee is experiencing another substantially similar condition as specified by the Secretary of HHS in consultation with the Secretaries of Labor and Treasury.

Small businesses with under 50 employees may seek an exemption from the Secretary of Labor from the requirement to offer this leave to employees caring for a child whose school or care facility has closed due to coronavirus “when the imposition of such requirements would jeopardize the viability of the business as a going concern.”

Emergency Family Medical Leave:

Employees caring for a child whose school or care center has closed as a result of a national health emergency, such as coronavirus, and cannot work or telework as a result must be provided up to 12 weeks of leave. Again, small businesses with fewer than 50 employees may seek an exemption from the Secretary of Labor.

• The first two weeks of leave is unpaid. Employees may elect to use any paid time off available, such as vacation, sick, or personal time, to cover pay for these weeks.

• The next 10 weeks of leave is paid at two-thirds of the employee’s salary.

• Employees must have been employed with employer for at least 30 days to qualify, and employers must make reasonable efforts to return said employees to the same or substantially similar position (similar in pay, benefits, and other terms and conditions of employment) upon their return from leave, barring specified hardship exemptions for employers with fewer than 25 employees.

Tax Credits: 

Amounts paid by employers to employees for paid sick and family medical leave benefits are eligible for tax credits against payroll taxes to help offset the cost to employers. 

Other:

Other funding and economic assistance provided under this Act include: supplemental appropriations to the USDA for nutritional food assistance programs; continuation of access to lunch for students whose schools have been closed; emergency temporary OSHA standards requiring employers to develop and implement a comprehensive infectious disease exposure control plan to protect health care workers; expansion of unemployment benefits to states and grants for processing and paying claims; coronavirus testing at no cost to consumers; and a temporary increase in the percentage of Medicaid federal funds to states.

Notice Requirements:

The Secretary of Labor will provide a sample Notice within 7 business days that meets posting requirements. Employers are required to post a notice of this Act in their place of business where notices for employees are usually posted, such as required minimum wage notices. Employers who fail to comply with notice requirements will be subject to a fine. Employers who fail to provide benefits in accordance with this Act may be deemed to have violated minimum wage laws.

Additionally, employers may need to update their employee handbooks. At this time, the benefits for workers provided under this Act expire on December 31, 2020. An “addendum” to your policies is likely sufficient as the Act is currently set to expire at the end of this year barring the need for an extension.

As always, we’re here to answer your questions as we all navigate these unprecedented waters. Please reach out with any assistance you may need.