Families First Coronavirus Response Act and How It Impacts Your Business

To lessen the economic consequences from Coronavirus (COVID-19), President Trump has signed the Families First Coronavirus Act. This act is intended to provide free coronavirus testing, family and medical leave, paid sick leave, tax credits to the employers providing the leave, the self-employed and to expand food assistance and unemployment benefits. The law goes into effect on April 1, 2020 and ends on December 31, 2020.

Here is a summary of what the Act means for you and your business.

• Paid Sick Leave – Employers with fewer than 500 employees are required to pay two weeks (80 hours) of sick leave to employees who are unable to work due to a coronavirus-related absence. Pay is capped at $200 per day and an overall of $2,000 per employee.
• • Employers are required to grant this leave immediately regardless of the employee’s length of employment.
  • Covers a range of COVID-19 related issues, including: employees subject to a quarantine, employees advised by a health provider to self-quarantine, experiencing symptoms and seeking diagnosis, employees caring for a quarantined or sick family member, or caring for children due to school or daycare closing related to COVID-19.
  • Employers cannot require employees to find a replacement worker or use other sick leave before this sick time.
  • The Department of Labor has the authority to exempt small businesses with fewer than 50 employees, but currently those businesses are not exempted.

• Family and Medical Leave – The bill expands the Family and Medical Leave Act (FMLA). Like paid sick leave, family and medical leave applies to employers with fewer than 500 employees. The bill provides 10 weeks of paid leave at 2/3 pay to employees caring for a child due to COVID-19 related school or daycare closures.
  • The first 10 days of leave may be unpaid, then up to 10 weeks of paid leave is required.
  • Pay is capped at $200 per day and a maximum of $10,000 per employee.
  • Part-time employees are eligible based on average weekly hours.
  • Applies to employees that give notice and are unable to work because they must care for a child under 18 years old due to COVID-19 related school or daycare closures.
  • Employees must have worked for the employer for 30 or more calendar days.
  • Provides 12 weeks of job-protected leave for employees.
  • The Department of Labor has the authority to exempt small businesses with fewer than 50 employees, but currently those businesses are not exempted.

• The Act provides tax credits to employers to cover wages paid to employees while they take leave under the Emergency Family and Medical Leave Expansion Act (EFMLEA) and the Emergency Paid Sick Leave Act (EPSLA).
• Self-employed individuals are also eligible to receive a tax credit.
• Unemployment Support to States – The bill provides $1 billion in grants to states for unemployment programs.

Contact us for more information regarding how this bill impacts your business.