What to Know Now

On the morning of Saturday, March 14, the House of Representatives passed HR 6201 to provide relief for families impacted by COVID-19, and the Senate is expected to take up the legislation as early as Monday, March 16. Here’s what you need to know now:

• The bill includes mandatory employer-provided emergency sick pay and emergency paid family leave for employers with fewer than 500 employees.
• A credit will be provided to employers to reimburse 100% of the qualified sick leave wages as a credit against Employer Social Security Tax.
• The bill will be effective within 15 days of the President’s signature, on a date determined by the Secretary of Treasury and does not currently contain any retroactive applicability.
• The emergency sick pay and family leave requirements expire on 12/31/2020.
  This bill is likely to have additional updates as it goes through Senate.

• When Does This Start

  April 2, 2020 and expires December 31, 2020.

• Who Does the Emergency FMLA Expansion and Emergency Sick Leave Impact

  Employers with less than 500 employees and employees who have been employed for at least 30 calendar days.
  THERE ARE ALLOWABLE EXEMPTIONS – Employers can choose to exclude employees who are health care providers or emergency responders.
  Small businesses with fewer than 50 employees may qualify for exemption status if compliance with the requirements would jeopardize the viability of the business (Qualifications are still pending).

• How Will I Cover The Additional Costs Incurred

  Businesses will be credited via a Payroll Tax Credit. This credit applies to both the Emergency FMLA expansion and Emergency Sick Leave. It is a dollar for dollar credit against the employer portion of Social Security taxes.

• What is Considered a Covered Purpose for Emergency FMLA

  An employee who is unable to work due to a need for leave to care for their child because the school or daycare has been closed or the childcare provider is unavailable due to a public health emergency.

• What is the Duration of EFMLA

  EFMLA offers 12 weeks of job protected coverage.

• How Are Employees Compensated

  There is no pay for the first 10 days of leave – however an employee can use other paid time off such as sick or vacation hours already provided by the Employer.

  After 10 days, employers must pay two thirds of the employee’s regular rate of pay for the number of hours they would normally be scheduled to work, capped at $200/day and $10,000 total.

• What Is Emergency Paid Sick Leave

  Emergency Paid Sick Leave offers up to 80 hours of paid sick leave if an employee takes leave due to a Covid-19 covered purpose.

• What is Considered a Covered Purpose For Emergency Sick Leave

  Quarantine or isolation ordered by local, state, federal government, or advised by a health care provider. Quarantine or isolation due to experiencing symptoms of Covid-19 and seeking medical diagnosis, or quarantine or isolation to care for an individual or child with symptoms, or to care for a child whose school or place of care is closed due to Covid-19 or any other substantially similar situation.

• How Much Leave Has To Be Provided

  Full time employees are entitled to 80 hours of paid sick leave. Part time employees are entitled to sick leave equal to the number of hours worked on average over a typical two-week period.

  Pay is capped at $511/day and $5,110 total if the employee is affected directly. Pay is capped at $200/day and $2,000 total if the employee is caring for someone else.

• Does this leave Interact with Other Employer-Provided Paid Leave

  This act does not pre-empt existing state and local paid sick leave requirements and employers cannot require employees to use other leave first. Sick leave provided under the act does not carry over from year to year, and expires December 31, 2020

  *This is a brief summary – to view the Act in its entirety click here

  Draft Model Notice for Employers to post can be found here.