Federal Legislation | Families First Coronavirus Response Act
On March 18, the President signed the Families First Coronavirus Response Act which requires mandatory paid sick leave to hourly employees and expands unemployment insurance, as well as creates a small business interruption loan program. Under the new law, employers are required to offer paid sick leave for COVID-19-related reasons. Existing leave offered can count toward the 10 days. If the sick leave is for an employee who is sick or seeking a diagnosis, the benefit must replace all of the employee's wages up to a maximum benefit of $511 per day. If an employee is caring for another individual who is sick, the benefit must replace at least two-thirds of the employee's wages up to a maximum benefit of $200 per day. Payroll tax credits will be provided to employers with up to 500 employees to cover 100% of the cost of the paid sick leave for COVID-19 -related absences. Tax credits will also be offered to offset the employer contribution for health insurance premiums for the employee for the period of leave. Self-employed individuals will also be eligible for tax credits. Employers with fewer than 50 employees will be able to apply for a hardship exemption if they can show that the paid sick leave would jeopardize their business. Additional details about expected future federal legislation will shared when available.
Families First Coronavirus Response Act (HR 6021) Summary
In the most recent package, HR 6021 allows certain employers would be required to provide 80 hours (or 2 weeks) of fully paid leave to full-time employees (pro-rata rules would apply to part-time employees) on top of any other existing paid leave program of the employer to cover employees not working for the following uses:

  1. the employee is subject to a Federal, State, or local quarantine or isolation order related to coronavirus;
  2. the employee has been advised by health care provider to self-quarantine due to coronavirus;
  3. the employee is experiencing symptoms of coronavirus;
  4. the employee is caring for an individual who is subject to an order described in (1) or has been advised as described in (2);
  5. the employee is care for their child because the school is closed or child care provider is unavailable due to coronavirus; or
  6. the employee is experiencing a similar condition specified by Secretary of HHS.

Employers would be required to pay employees their full wages, not to exceed $511 per day and $5,110 in the aggregate, for a use described in (1), (2), or (3) above.

Employers would be required to pay employees two-thirds of their wages, not to exceed $200 per day and $2,000 in the aggregate, for a use described in (4), (5), or (6) above.

Employers would receive a 100 percent refundable payroll tax credit on the wages required to be paid.

The requirement to provide the paid leave would apply to all public sector employers and those private sector employers with less than 500 employees. The tax credit eligibility would only apply to those private sector employers with less than 500 employees.

Secretary of Labor has authority to issue regulations to exempt small businesses with fewer than 50 employees if the above requirements would jeopardize the going concern of the business.

Payroll Credit for “Qualified Family Leave Wages”

Employers would also generally be required to provide ten weeks of paid leave. Employers would be required to pay employees two-thirds of their wages, not to exceed $200 per day and $10,000 in the aggregate.

This leave would cover employees who are not working because the employee is caring for their child because the school is closed or child care provider is unavailable due to a public health emergency.

The requirement to provide the paid leave would apply to all employers with less than 500 employees. Federal, state, and local governments are not eligible for the Credit.

Employers would receive a 100 percent refundable payroll tax credit for the wages required to be paid.

Secretary of Labor has authority to issue regulations to:


  1. exclude certain health care providers and emergency responders from the definition of eligible employee; and
  2. exempt small businesses with fewer than 50 employees if the above requirements would jeopardize the going concern of the business.