The Families First Coronavirus Response Act: How does this Impact Employers?

Mar. 2020

The United States House of Representatives passed the preliminary version of the Families First Coronavirus Response Act or the FFCRA.  The Act has not been addressed by the Senate or signed by the President, but is expected to pass through each hurdle quickly.

Here is a breakdown of what the FFCRA does:

• Mandates paid leave through the Emergency Paid Sick Leave Act (EPSLA).
• Amends the Family and Medical Leave Act (FMLA) to allow additional leave (paid and unpaid) when used for a “public health emergency,” as defined by the FFCRA.
• Provides Employers with significant federal tax credits related to wages paid for the above-described sick leave.
• Provides additional paid leave on top of any paid leave already offered by the Employer.
  • Note: Employer may not require employees to use all Employer-provided sick leave or paid time off (for those that do not offer sick leave but only offer paid time off), before using emergency sick leave time under the FFCRA.

What Employers need to do under the FFCRA:

• Provide paid sick leave to any Employees that are not working for any of the following reasons, through December 31, 2020:
  • Self-isolation due to a novel coronavirus diagnosis.
  • Receive testing or see a doctor to obtain a diagnosis – related to the novel coronavirus.
  • Comply recommendations of medical professionals or public officials stating the Employee’s physical presence at the place of employment would risk the health of others because:
    • The Employee was exposed to the novel coronavirus.
    • The Employee exhibited symptoms of the novel coronavirus.
  • To provide care for sick family members who:
    • Are self-isolating due to a novel coronavirus diagnosis.
    • Following the recommendations of a medical professional or public official after being exposed to or is exhibiting symptoms of the novel coronavirus.
  • To care for children if their “school or place of care” has closed or childcare is unavailable due to the novel coronavirus.
• Pay employees who take leave at the “regular rate” of pay.
  • Regular rate for hourly employees is the hourly rate paid for all non-overtime hours worked in a workweek to include: bonuses, commissions, other compensation received.
  • Regular rate for salaried employees, this is their standard weekly salary.
• Post and keep posted the notice regarding emergency paid sick leave.  This will be issued by the Department of Labor shortly.

What are Employees entitled to?

• Full-time Employees = 80 hours of emergency sick paid leave.
• Part-time Employees = Average number of hours worked over a two-week period.
• Note: There is no mandatory length of employment for these requirements.

FMLA Expansion:

• Employees are able to take 12 weeks of “public health emergency leave” to address or comply with:
  • The recommendation of a doctor or public official regarding:
    • Exposure to or exhibited symptoms of the novel coronavirus.
    • The inability to perform functions of their job due to compliance with the above-referenced order.
  • Employers may choose not to pay an employee for the first 14 days of “public health emergency leave.”  Employers may choose to substitute accrued vacation days, sick days, or paid time off (PTO) during this leave.
    • The two weeks provided by the FFCRA can be used for this period if it would otherwise be unpaid.
  • Employers must pay for any leave beyond 14 days that qualifies under the FFCRA.  This can be paid at a rate of no less than two-thirds (2/3) of the “regular rate” for the “number of hours normally scheduled.”
  • Expands the number of employees eligible for other types of leave under the FMLA.
  • Employees only need to work for the Employer for 30 days at the time the leave begins to be eligible for these benefits.
  • All Employers with less than 500 employees must
    • Except for small business with less than 50 employees “when the imposition of the requirements would jeopardize the viability of the business as a going concern.”
  • Employers that employ less than 25 employees do not need to restore an employee to their job after a “public health emergency leave” if:
    • The position no longer exists due to economic conditions or other operating conditions of the Employer.
    • The Employer made reasonable efforts to restore the employee to an equivalent position.
    • The Employer’s effort fails but reasonable efforts are made to contact the employee once a similar positions becomes available the following year.

For more information please follow the link: https://www.congress.gov/bill/116th-congress/house-bill/6201/titles.

If you have questions, please contact our office.