Families First Coronavirus Response Act (“FFCRA”)
To address the substantial financial impact of COVID-19 on the U.S. workforce, President Trump signed the Families First Coronavirus Response Act (“FFCRA”) into law on March 18, 2020.
Summary: FFCRA requires Covered Employers to provide two weeks of paid sick leave and twelve weeks of childcare leave (ten weeks paid) in response to COVID-19. Employers will receive 100% tax credits on a quarterly basis for all paid leave.
Covered Employers: Private employers with fewer than 500 employees and all government employers.
Effective Date: FFCRA becomes effective 15 days after enactment, or April 2, 2020, and expires on December 31, 2020.
PAID SICK LEAVE:
All employees are eligible for two weeks of paid sick leave, regardless of date of hire and including part-time employees, under the following conditions:
• Employee is subject to a government quarantine or isolation order or has been advised by a health care provider to self-quarantine due to COVID-19.
• Employee has symptoms of COVID-19 and is seeking a medical diagnosis.
• Employee is caring for an individual who is subject to government quarantine or isolation order or has been advised by a health care provider to self-quarantine due to COVID-19.
• Employee is caring for a child due to school or childcare closure related to COVID-19.
Monetary Caps for Paid Sick Leave:
• For absences related to the employee’s own care (1 and 2 above), pay is capped at $511 per day or $5,110 in total.
• For absences for employee’s care of others (3 and 4 above), the employee receives two-thirds of the employee’s regular rate of pay, capped at $200 per day or $2,000 in total.
FMLA AMENDMENT:
FFCRA amends the FMLA to require Covered Employers to provide eligible employees with 12 weeks of job-protected leave to care for the employee’s child due to the child’s school or childcare closure, or the unavailability of the childcare provider due to COVID-19.
• The first two weeks of leave are unpaid.
• Employees may elect to substitute paid time off for the unpaid portion of leave, including the new paid sick leave law, existing PTO, vacation, personal days, sick days, etc.
• The remaining ten weeks is to be paid at two-thirds of the employee’s regular rate of pay, capped at $200 per day and $10,000 total.
Eligible Employees:
All full-time, part-time, and temporary employees who have been employed for at least 30 days, with no requirement for a minimum number of hours worked.
Job Protection:
• Employers with 25 or more employees must return employees to the same or substantially equivalent position.
• Employers with fewer than 25 employees are not required to return the employee to work if: a) the position no longer exists due to economic conditions caused by a public health emergency, and b) the employer makes reasonable efforts to find an equivalent position during the one-year period following the end of the employee’s leave.
Small Business Exemptions:
FFCRA contains a provision allowing the U.S. Secretary of Labor to issue regulations to exempt small businesses (fewer than 50 employees) where the new requirements would jeopardize the business as a going concern.
Note: It is unclear if or when such an exemption will be implemented.