Late yesterday, President Trump signed the bill H.R. 6201
The Families First Coronavirus Response Act
which, among other provisions, provides paid leave to employees for coronavirus-related hardships. This Constant Contact focuses on the paid sick leave and paid family leave benefit provisions of the legislation.
In general, employees are eligible for sick leave pay equal to either 100% or 2/3
rd
of the employee’s regular daily pay (depending on circumstances) for a period of 10 days (2 weeks). Employees are also eligible for family leave pay equal to 2/3
rd
of the employee’s regular daily pay for a period of 10 weeks. Employers are entitled to a quarterly, refundable, payroll tax credit equal to the amount of benefits paid to employees. The credit essentially subsidizes the cost of the benefits to the employer. Certain employers based on size measured by number of employees are either automatically exempt from providing certain benefits or may obtain exemption through the labor secretary. Due to the immediate nature of this legislation, certain questions and uncertainties remain. We will continue to monitor interpretations and guidance and provide further clarification going forward.
Applicable Employers
- Employers with more than 500 employees are not required to provide paid sick leave or paid family leave
- Employers with fewer than 50 employees may be exempted from providing paid family leave by the labor secretary. These employers cannot be exempted from paying sick leave
- Healthcare worker and emergency responder employers do not have to provide paid sick leave or paid family leave
Benefit Amount
- Sick leave
- 100% of employee’s regular daily pay, subject to a $511-per-day maximum cap, or
- 2/3rd of employee’s regular daily pay, subject to a $200-per-day maximum cap
- May be provided to employee for up to 10 days
- Family leave
- 2/3rd of employee’s regular daily pay, subject to a $200-per-day maximum cap
- May be provided to employee for up to 10 weeks following sick leave
- Non-Full Time Employees
- Employees who work a part-time or irregular schedule are entitled to be paid based on the average number of hours the employee worked for the six months prior to taking leave benefits
Credit for Employers
(Refundable, Quarterly, Payroll Tax Credit)
In general, the credit amounts for employers mirror the benefits paid to employees:
- Sick leave credit
- 100% of employee’s regular daily pay, subject to a $511-per-day maximum cap
- 2/3rd of employee’s regular daily pay, subject to a $200-per-day maximum cap
- Family leave
- 2/3rd of employee’s regular daily pay, subject to a $200-per-day maximum cap
- Self-employed individuals are also eligible for income tax credits equal to the size of the employer payroll credits
Qualifications for Sick & Family Leave
- Sick leave 100% regular daily pay benefit
- 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 healthcare provider to self-quarantine because of concerns related to COVID-19.
- The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
- Sick leave 2/3rd regular daily pay benefit
- The employee is caring for an individual who is subject to quarantine or isolation
- The employee is caring for a child of such employee if the school or place of care of the child has been closed, or the child care provider of such child is unavailable, because of COVID-19 precautions.
- The employee is experiencing any other substantially similar condition specified by the secretary of health and human services in consultation with the Treasury secretary and the labor secretary.
- Family leave 2/3rd regular daily pay benefit
- The employee is unable to work (or telework) due to a need for leave to care for the son or daughter under 18 years of age of such employee if the school or place of care has been closed, or the child care provider of such son or daughter is unavailable, due to a public health emergency related to COVID-19.
