Coronavirus (COVID-19)
Updated Information for Employers and Small Business Clients
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This newsletter serves as an update to last week's newsletter regarding the Families First Coronavirus Response Act and the Commonwealth’s response to COVID-19.
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Families First Coronavirus Response Act
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The Senate passed, and President Trump signed, an amended version of the Families First Coronavirus Response Act (the “Act”). The Act only applies to employers with less than 500 employees. Below outlines the final version of the Act as it relates to employers and small business owners.
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Paid Sick Leave
Employers are required to provide each employee with 10 days (80 hours for full-time employees, part-time employees get a pro-rated amount) of paid sick time. This paid sick time is available immediately, regardless of how long an employee has been employed, if the employee is unable to work or telework for any of the following reasons:
- They are 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 COVID-19-related concerns;
- The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis;
- The employee is caring for someone who is subject to a quarantine or isolation order or who has been advised to self-quarantine;
- The employee is caring for a child if the child’s school or place of care is closed or the child-care provider is unavailable because of COVID-19 precautions; or
- The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of Treasury and the Secretary of Labor.
For reasons 1-3 above, employers are required to pay an employee his or her regular rate of pay, up to $511 per day. For reasons 4-6, an employer must pay the employee two-thirds of his or her regular pay, up to $200 per day.
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Employers cannot force an employee to use his or her accrued PTO before affording him or her the paid sick time. This paid sick time is only available until December 31, 2020 and cannot be carried over into the new year. It cannot be paid out at the termination of employment.
Tax Credits: Employers are eligible to claim a tax credit each calendar quarter for 100% of the qualified sick leave wages it paid during the quarter. The credit is only available for up to 10 days of qualified sick leave wages per employee.
Notice
: Employers must post a notice related to this section of the Act in a conspicuous place in the workplace. A model notice will be provided by the Department of Labor in the coming days.
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Expansion of the Family and Medical Leave Act (FMLA)
Under the FMLA, eligible employees (employees who have been employed for a minimum of 30 days) may take up to twelve (12) weeks of job-protected leave. This new FMLA leave is available to employees unable to work or telework because he or she is caring for a child under the age of 18 due to the child’s school or place of care being closed or their child-care provider is unavailable. The first 10 days of leave will consist of unpaid leave, though an employee may elect to use any accrued PTO. The remaining 10 weeks must be paid at a rate of no less than two-thirds of the employee’s regular rate of pay but shall not exceed $200 per day. This expansion goes into effect on April 2, 2020 and terminates December 31, 2020. Employers with fewer than 50 employees may be excluded where a hardship exemption applies.
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Commonwealth of Massachusetts Government Response
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Continued Operation of Essential Services Order
Non-Essential
: On Monday, March 23, 2020, the Baker Administration issued an order requiring businesses and organizations that do not provide “COVID-19 Essential Services” to close their physical workplace locations and facilities beginning at noon on Tuesday, March 24 until noon on Tuesday, April 7. During this two-week period, all non-essential businesses are encouraged to continue operations remotely.
COVID-19 Essential Services
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Businesses and organizations designated as “COVID-19 Essential Services” shall continue business operations in a manner consistent with social distancing protocols set forth in the Department of Public Health guidance. Examples of essential organizations and employees include healthcare, law enforcement, food manufacturers, utilities, transportation and public works.
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We Are Here to Help in This Time of Need
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Many of our clients have raised questions about remote work arrangements, essential employees reporting to work, layoffs, health insurance continuation, medical inquiries and employee privacy.
Phifer Pinkham, LLC will remain open, subject to any additional government orders, during normal business hours to assist you with any questions you may have.
We will continue providing updates and guidance as more information becomes available.
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Phifer Pinkham, LLC
is a full service law firm representing businesses, their owners, and individuals in connection with their legal needs in the areas of business and corporate law, litigation, estate planning and administration, employment law, taxation, intellectual property, and non profit representation. We provide premium legal services without the Boston premium. Please contact us at (617) 409-7409 to set up an in-person or phone consultation, or please feel free to contact any of our attorneys directly at the email address links provided below.
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