The Families First Coronavirus Response Act was signed into law on March 18, 2020.
In the coming days and weeks, federal regulatory agencies, including the Department of Labor (DOL) and Health and Human Services (HHS), will provide guidance on how to execute or implement the new requirements. In the meantime, employers and advisors must rely on a good faith interpretation of the act’s text. We are sharing everything we know below and will not be able to answer follow up questions about the act until agency guidance has been released, which will take some time.
Summary
For certain circumstances related to COVID-19, employees will be eligible for:
Effective Date of Law
The FMLA and Paid Sick Leave sections discussed below will go into effect on April 1, 2020 and expire December 31, 2020.
It appears there is no retroactive application.
Key Elements for Employers
Emergency FMLA Expansion
Covered Employers: Employers with fewer than 500 employees are covered.
Covered Employees: Any employee who has been employed for at least 30 calendar days, though employers may be able to exclude employees who are health care providers or emergency responders.
Covered Leave Purpose: To care for a child under 18 of an employee if the child’s school or place of care has been closed, or the childcare provider is unavailable, due to a public health emergency, defined as an emergency with respect to the coronavirus declared by a federal, state, or local authority.
Duration:
Compensation:
No pay for first 10 days of leave (other paid time off, and emergency sick leave under the FFCRA, may be applied)
Reinstatement to Position after Leave:
The same reinstatement provisions apply as under traditional FMLA. However, restoration to position does not apply to employers with fewer than 25 employees if certain conditions are met:
Note: The act reserves the right for the Secretary to exclude certain care providers and first responders from the list of eligible employees and to exempt small businesses with fewer than 50 employees if business viability is jeopardized.
Emergency Paid Sick Leave
Covered Employers: Employers with fewer than 500 employees.
Covered Employees: All employees (no matter how long they have been employed), though employers may be able to exclude employees who are health care providers or emergency responders.
Covered Leave Purposes:
Duration of Leave:
Rate of Pay:
Interaction with Other Employer-Provided Paid Sick Leave and other Paid Leave:
This act does not preempt existing state and local paid sick leave requirements.
Employers cannot require employees to use other leave first.
Sick leave provided for under the act does not carry over from year to year, and the requirements expire December 31, 2020.
Notice Requirements:
Note: The act reserves the right for the secretary to exclude certain care providers and first responders from the list of eligible employees and to exempt small businesses with fewer than 50 employees from providing paid leave for child care if business viability is jeopardized.
Payroll Tax Credit
Health Plan Benefit Mandate