On March 18, 2020, President Trump
Signed The Families First Coronavirus Response Act into law. The new law contains
several modifications from the original bill passed by the House. Employers
must immediately draft policies and train human resources employees to implement the new
law. In addition, Employers must post a Notice in the workplace as detailed
below.
Here is a summary of key provisions
of the new law that apply to employers/employees:
1) Emergency Family and
Medical Leave Expansion Act
Effective Dates: April 2, 2020 – December 31, 2020.
Qualified Employers/Employees: Applies to employers with less than 500 employees for
all employees who have been employed for at least 30 calendar days.
Reason for Leave: The qualifying reason for leave is
limited to an employee who is "unable to work (or telework) due to a
need for leave to care for the son or daughter under 18 years of age of
such employee if the school or place of care has been closed, or the child
care provider of such son or daughter is unavailable due to a "public
health emergency."
Amount of Pay (tax credits are
available to employers): The first 10 days of leave are unpaid (employee may
substitute accrued vacation, personal or sick leave). For the following
10 additional weeks, the employer must compensate the employee at a
rate of no less than two-third's of the employee's regular rate of pay.
However, such pay is capped at $200 per day and $10,000 total.
Job Protection: Position
is protected until return from leave unless employer, who employs 25 or
fewer employees, eliminates position due to a downturn in economic
conditions as a result of the Coronavirus. However, employers would still
have to make "reasonable efforts" to restore employee to the
same or equivalent position.
Exemptions: The Act provides authority to the Department of
Labor to exclude health care providers,
emergency responders and employers with less than 50 employees where the
"viability of the business as a going concern" would be
jeopardized.
2) Emergency
Paid Sick Leave Act
·
Effective
Dates: April 2, 2020 – December 31, 2020
·
Qualified
Employer/Employee: Covers all employers with less
than 500 employees for all employees regardless of length of employment.
·
Reasons for
Leave: Employee may take leave under this
Act, if unable to work (or telework) for any of the following reasons:
- The employee is subject to federal, state or local quarantine as a result of the Coronavirus;
- The employee has been advised by a health care provide to self-quarantine as a result of the Coronavirus;
- The employee is experiencing symptoms of the Coronavirus and is seeking a medical diagnosis;
- The employee is caring for an individual who is subject to an order described in Section 1, or advised as described in Section 2;
- To care for a child whose school is closed or his/her regular child care provider is unavailable;
- The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
Exemptions: Health care providers and emergency responders.
