COVID-19 UPDATE 4
March 19, 2020
PRESIDENT TRUMP SIGNS THE FAMILIES FIRST
CORONAVIRUS RESPONSE ACT
President Trump enacted the Families First Coronavirus Response Act, H.R.6201, (the ACT) yesterday. The Act will go into effect 15 days from enactment and it applies to all companies with up to 500 employees.
The ACT requires employers with fewer than 500 employees to provide 10 days (80 hours) of paid sick time due to the public health emergency to employees who need leave for qualifying reasons under the ACT. Small businesses with fewer than 50 employees may be exempt from the ACT’s requirements under certain circumstances to be determined by the U.S. Department of Labor. An eligible employee is one who has worked at least 30 calendar days for the employer. This paid sick leave is in addition to existing paid sick leave or PTO time that is offered by or required of employers. Employers will receive 100% tax credit for paid sick time up to the ACT’s paid limitations (up to $511 per day, $5,110 total or up to $200 per day, $10,00 total when caring for children home from school). Please note that leave for employees caring for children under 18 years of age due to eligible school closing are only entitled to unpaid sick leave for the first ten days. Paid sick leave applies to both full and part time employees (on a pro-rata basis) and the requirement/benefit expires on December 31, 2020.
The ACT states that an employer who is a signatory to a multi-employer collective bargaining agreement may fulfill its obligations (consistent with bargaining obligations and the collective bargaining agreement) by making contributions to a multi-employer fund, plan, or program based on what paid leave each of its employees is entitled to while working under the agreement. The fund, plan, or program must enable employees to receive pay for the FMLA leave. We will be seeking clarification from our labor partners regarding this provision.
Below are a few more details regarding the ACT. Due to the emergent speed at which this bill moved through Congress, there remains many unanswered questions. When UTCA learns of more details, we will share that information with you.
There are six qualifying reasons for coverage under this bill.
- The employee is subject to a federal, state or local quarantine or isolation order related to COVID-19;
- The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
- The employee is experiencing symptoms of COVID-19 and seeking medical diagnosis;
- The employee is caring for an individual who is subject to a federal, state or local quarantine order, or the individual has been advised to self-quarantine due to concerns related to COVID-19;
- The employee is caring for the employee's son or daughter, if the child's school or childcare facility has been closed or the child's care provider is unavailable due to COVID-19 precautions; or
- The employee is experiencing any other substantially similar condition specified by Health and Human Services in consultation with the Department of the Treasury and the Department of Labor.
Employees
- Normal FMLA is unpaid, but under the FFCRA, employees who are on sick leave because they are sick can receive their full pay, up to $511 per day, or $5110 total.
- Leave taken to care for children whose schools or daycares have closed is paid at two-thirds the employee's regular rate of pay, with a maximum of $200 per day or $10,000 total.
- Employers cannot force you to use up your vacation or other sick time before receiving this benefit.
- There is a ten-day waiting period before this benefit applies. Employees can use existing sick or vacation time to cover these days.
Employers
- Employers receive tax credits for 100 percent of what they pay out to employees, with the above-noted limits.
- For employers with 50 or fewer employees, the Secretary of Labor can exempt the business from these requirements.
- Employers with fewer than 25 employees do not have to restore employees to their previous positions.
Due to the emergent speed at which this bill moved through Congress, there remains many unanswered questions concerning the ACT. The federal Government is expected to issue a guidance document in a few weeks which will provide more details. When UTCA obtains this information, we will share that information with you.
