The exemption may apply to:
• Small businesses with fewer than 50 employees,
• Whose employee’s leave is to care for his or her child whose school or place of care is closed (or child care provider is unavailable),
but only if
• Requirements of the FFCRA jeopardize business viability
There is no application process for the exemption.
Exemption applies if employer determines:
• Leave would result in expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity
• Employee’s absence would entail a substantial risk to the financial health or operational capabilities of the business because of the employee’s specialized skills, knowledge of the business, or responsibilities; OR
• There would be insufficient employees able, willing, and qualified at time and place needed to perform labor or services provided by the employee, and these labor or services are needed for business to operate at a minimal capacity.
for a link back to the information on the U.S. DOL's website regarding this small business exemption.
Employers should keep documentation of why this exemption applies
. Do not send any documents to the Department of Labor regarding qualification for this exemption.
Even if the exemption applies, employers are still required to post paid leave requirements conspicuously. Not posting or providing the notice to employees is violation of the FFCRA.
Paid Leave Tax Credits.
qualify for the exemption and provide paid leave can recoup paid leave expenses through tax credits applied to employment taxes. TPGA will be releasing more information on paid leave tax credits in upcoming communications.