On March 18, 2020, the Families First Coronavirus Response Act (“FFCRA”) was signed into federal law. The FFCRA introduces paid leave for employees who are impacted by or caring for someone impacted by COVID-19. The FFCRA will be in effect from April 2, 2020 to December 31, 2020.
The FFCRA has two components – EPLSA (“Emergency Paid Sick Leave Act”) and EFMLEA (“Emergency Family and Medical Leave Expansion Act”). The EPSLA gives employees up to two weeks of paid leave. The EFMLEA is an expansion of FMLA benefits that provides an initial 10 day period of unpaid leave, followed by a period of paid leave.
Here are 7 important facts that you should know about this new law.
1) Potential Exemptions for Smaller Companies: The FFCRA currently applies to employers with 500 or fewer employees. However, the Secretary of Labor may be issuing regulations that only require employers with less than 50 employees to provide the paid leave if it would not jeopardize their “economic viability.” This is yet to be determined.
2) Duration of employment: Full time and part time employees qualify for benefits under both the EPSLA and the EFMLEA. For the EPSLA, duration of employment does not matter. For the EFMLEA, the employee must have been employed for at least 30 days before the first day of leave.
3) Qualifying Reason: Self-imposed quarantines do not necessarily qualify employees for leave. For example, the EPSLA portion of the leave applies only when the employee is quarantined pursuant to a government order or advice of a health care provider, is experiencing COVID-19 symptoms and seeking a medical diagnosis, is caring for an individual subject to quarantine order, is caring for a child whose school/care provider has been closed due to coronavirus, or lastly, is experiencing any other “substantially similar condition.” “Substantially similar condition” has yet to be defined – but guidance should be forthcoming in the coming weeks.
4) Telework: If you are able to telework, you likely do not qualify for EPSLA or EFMLEA leave.
5) Tax Credits for Employers: Employers will be repaid in the form of certain dollar for dollar tax credits taken against the employer’s portion of the Social Security taxes. The credits are refundable if the employer pays more benefits than it owes in taxes.
6) Enforcement: There will be a temporary period of non-enforcement for the first 30 days after the FFCRA takes effect, so long as the employer has acted reasonably and in good faith to comply with the FFCRA.
7) Notices to be posted: All employers will be required to post a notice of the FFCRA requirements. The model notice should be available by March 25, 2020 – and may take the form of an updated version of the current FMLA poster.
We are following all developments closely – including guidance from the government on how these laws will be enforced and implemented.
If you have any questions, contact us by email at info@garibianlaw.com.