In response to the numerous client inquiries concerning dealing with COVID-19 in the workplace, Smart HR will exclusively devote blog content to relevant COVID-19 topics for the foreseeable future. We hope you find the information pertinent to the current health crisis and beneficial going forward after our normal lives resume.
The Families First Coronavirus Response Act (FFCRA)
On March 19, 2020, President Trump signed into law The Families First Coronavirus Response Act (FFCRA) that takes effect on April 2, 2020, and will remain effective until December 31, 2020. Among the many economic stimulus measures contained in the Act are two of particular concern to HR professionals and business owners, the Emergency Paid Sick Leave and expanded FMLA provisions. Following is a summary of the provisions.
Emergency Paid Sick Leave (EPSL)
What is it?
Employers with fewer than 500 employees are required to provide eligible employees with 80 hours of paid sick leave (part-time employees receive their average number of hours worked in a two-week period) who are unable to work or telework for any of the following reasons:
- 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 health care provider to self-quarantine because of COVID-19
- The employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis
- The employee is caring for an individual subject or advised to quarantine or self-isolate
- The employee is caring for a son or daughter whose school or place of care is closed, or childcare provider is unavailable, due to COVID-19 precautions
- The employee is experiencing substantially similar conditions as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury
Who is Eligible?
All employees of employers with fewer than 500 employees, regardless of the length of their tenure with their employer.
How Much are Employees Paid?
The Act limits an employer’s requirement of paid leave to $511 per day or $5,110 in the aggregate where leave is taken for reasons (1), (2), and (3) noted above (generally, an employee’s own illness or quarantine); and $200 per day or $2,000 in the aggregate where leave is taken for reasons (4), (5), or (6) (care for others or school closures).
Are There Other Provisions?
Yes. Employees may not carry over EPSL from one year to the next. EPSL ceases beginning with the employee’s next scheduled work shift immediately after the need for EPSL stops. Employers may not require employees to first use other paid time off before using EPSL meaning EPSL is in addition to any other paid time off the employer currently provides. For employers with 25 or more employees, employees must be given job restoration following the use of EPSL.
Emergency FMLA
What is it?
Employers with fewer than 500 employees, and covered public-sector employers, must provide up to 12 weeks of job-protected FMLA leave for “a qualifying need related to a public health emergency” to employees who have been on the payroll for 30 calendar days.
What is a Qualifying Need?
This “qualifying need” is limited to circumstances where an employee is unable to work (or telework) due to a need to care for a minor child if the child’s school or place of childcare has been closed or is unavailable due to a public health emergency.
How Much are Employees Paid?
Eligible employees do not receive any pay during the first two weeks of leave but may use other applicable PTO, including employer-provided benefits or, if eligible, the paid sick leave established by the FFCRA. Employers must pay employees during the remaining 10 weeks at an amount not less than two-thirds of the employee’s regular rate of pay, with caps of $200 per day or $10,000 in the aggregate.
Are There Other Provisions?
Yes. The normal guarantee of FMLA job restoration following the use of paid emergency leave is modified. For employers with fewer than 25 employees, job restoration will not be required if the position no longer exists due to the effects of the public health emergency, even after reasonable efforts by the employer to restore the employee. If this happens, employers are to place the employee on a contact list for one year, during which time the employer must make reasonable efforts to contact the employee if an equivalent position becomes available.
Is There any Relief for Employers Providing EPSL and Emergency FMLA?
Employers will receive a 100 % tax credit for each calendar quarter to be applied against the employer’s Social Security tax. If the cost of providing paid sick leave or paid family leave exceeds the tax credit, the government will refund the difference. This credit and refund does not apply to public employers, because they do not pay into the Social Security system.
What Notification Requirements are There?
Employers must post a notice that advises employees of their rights under the Act which the Secretary of Labor will make available by March 25, 2020.
Are There any Exemptions?
Yes. Employers with fewer than 50 employees may be exempt, but only with permission from the U.S. Secretary of Labor. Also, employees who are healthcare workers or emergency responders can be excluded by their employers.
Contact Smart HR for Help
Smart HR is here to help you understand your legal requirements dealing with COVID-19 and other employment laws. New workplace issues are arising daily as a result of the current health crisis, and by partnering with Smart HR, you can be sure you have the latest information and guidance. Call today.
