- Find out how the Families First Coronavirus Response Act provides relief to employees needing immediate time off.
- Discover the qualifications for leave regarding circumstances related to the Coronavirus.
- Learn how the law provides for employees needing longer-term leave.
Congress passed and the president signed into law the Families First Coronavirus Response Act on March 18. The law allows employees time to care for themselves or loved ones. It also includes provisions for new tax credits to offset employers’ costs. But Fiducial understands that the immediate need to pay employees on leave may still be difficult for organizations struggling with revenue losses. We are here to help our clients weather this storm. Visit Fiducial’s Coronavirus Update Center for more information on the paid sick and family leave being offered as well as emergency relief services.
Time Off with the Families First Coronavirus Response Act
Immediate time off
The Families First Coronavirus Response Act affects employers with fewer than 500 employees. Under specified circumstances, these organizations must provide 80 hours of paid sick leave for full-time employees. Part-time employees need to be provided paid sick leave for the average number of hours worked over a two-week period.
An employee qualifies for the leave when he or she is unable to work — or telework — because of circumstances related to the coronavirus. These include:
- Experiencing symptoms and pursuing medical treatment,
- Being subject to a quarantine/isolation order or advisement,
- Caring for someone under a quarantine/isolation order, or
- Caring for a child whose school or daycare has been closed because of the outbreak and no alternative care is available.
An employee’s service time doesn’t affect whether he or she may take the leave under the Families First Coronavirus Response Act. Additionally, employers aren’t allowed to stipulate that employees must use other paid leave before the paid sick time.
When leave is taken for an employee’s own illness or quarantine, employers generally must pay the employee at his or her regular rate, though no higher than $511 per day up to a total of $5,110. When taking leave to care for someone else or under other permitted circumstances, pay must be remitted at two-thirds of the regular rate, with maximums of $200 per day and $2,000 total.
Longer term leave
The law requires applicable employers to provide employees with service time of at least 30 calendar days (including those working under multiemployer collective agreements and whose employers pay into a multiemployer plan) with up to 12 weeks of job-protected leave, a portion of which must be paid. (This is an amendment to the Family and Medical Leave Act.)
The leave is to be provided for employees who can’t work — or telework — because of a need to care for a minor child whose school or daycare has been closed or is otherwise unavailable because of the coronavirus. The first 10 days of the leave may be unpaid, though the 10 days might qualify for paid sick leave as described above. After 10 days, applicable employers must provide paid leave at two-thirds of an employee’s usual rate up to a maximum of $200 per day and $10,000 total per employee.
Note that certain exemptions and special rules may apply regarding both short- and long-term leave, and the U.S. Department of Labor will likely issue guidance in the coming days or weeks.
Assess the impact
The Families First Coronavirus Response Act takes effect April 2. However, the DOL has announced a “temporary period of non-enforcement” for the first 30 days thereafter. Fiducial is ready to provide further details on how this may affect your organization specifically. Fiducial is here to guide you through this difficult time. For more small business COVID-19 resources, visit Fiducial’s Coronavirus Update Center to find information on SBA loans, tax updates, the Paycheck Protection Program, paid sick and family leave, and more. Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations. Ready to book an appointment now? Click here. Know someone who might need our services? We love referrals!