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Association Member Legislative Alert!
Legislative Action Alert

O n Friday evening, March 13th, the US House of Representatives passed HR 6201
which provides for a number of regulatory changes and federal funding to combat the Coronavirus (COVID-19) outbreak.    

For all small businesses (those under 500 employees), the law also makes drastic changes to employer-required sick leave and Family Medical Leave Act (FMLA). 

These changes include:
  • Requires employer provided additional paid 14 days of sick leave
  • Requires employer paid FMLA up to 12 weeks

If enacted, many businesses will simply not be able to afford the cost of the new mandate at the same time they are experiencing slower sales, supply chain disruption and economic uncertainty. This increases to potential for bankruptcies and layoffs for small and mid-sized firms.

While the bill provides for 100% tax credits for employer sick leave and FMLA usage, it is unclear when these reimbursements would be made which will impact company cash flow, risking the ability to make timely payrolls, significantly reducing productivity and sales, and increasing overhead costs! Read the Bill Summary – HERE .

Contact Pennsylvania’s U.S. Senators to express your concerns with the U.S. House Bill.  The Senate will be considering the House Bill this week (3/16/2020).

Take the Survey from the National Association of Manufacturers to give your feedback – HERE .

  • Unforeseen increased costs of compliance, for small businesses
  • This will drastically increase small and medium sized employer costs
  • This law does not favor employers who already provide sick leave to employees
  • Expands the “Business Disruption” or hardship waiver due to the Coronavirus, not just for companies under 50 employees
  • Needs to clarify how the law impacts existing Paid Time Off (PTO), short term disability insurance and unemployment insurance. 

March 16, 2020
For more information from your Association about Educating, Preparing and Adapting to the Coronavirus, click HERE
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