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COVID-19 Emergency Sick and Family Leave: What Employers Need to Know
Posted on 3/19/20 at 8:52 am
Posted on 3/19/20 at 8:52 am
LINK
The United States Senate just rubber stamped the House version of emergency measures to help employees and families in response to the COVID-19 pandemic during this National Emergency. The law includes provisions you have likely been following closely. President Trump is expected to sign the bill this evening and it is expected to go into effect on April 2. Below, we’ve broken down what employers need to know now to prepare their business for sick and family leave in the era of COVID-19.
1. Emergency Sick Leave:
What does the sick leave entail?: Eighty hours of sick leave to be provided for full-time employees through the end of the year for a qualifying need. Part-time employees are eligible for an estimated number of typical hours for a part-time employee working a two-week period.
Who is a Qualifying Employer? Employers with fewer than 500 employees.
Who are Eligible Employees? Employees who have a qualifying need which includes:
• complying with a physician directive that they have COVID-19 or may threaten exposure to others;
• caring for a family member who has been infected or may threaten exposure to others; or
• caring for a child whose school or daycare is closed due to COVID-19 precautions.
The above qualifying needs only apply where the employee cannot otherwise perform their job while complying with the physician’s directive or caring for a family member or child.
How much do we pay? Employers are required to pay employees their normal wages or the minimum wage at the federal/state/local level, whichever is the higher. Sick-leave pay is capped at $511 per day ($5,110 in total) per employee for the employee’s own health-related absence and $200 per day ($2,000 in total) for caring for a family member or child.
Interaction with Current PTO Policy: Emergency sick leave must be provided in addition to any sick leave already provided by the employer.
2. Emergency Family Leave:
This part of the law expands the Family and Medical Leave Act (FMLA) for employees who need to take longer term leave through the end of the year because of closed schools or daycare. It does not extend benefits for those not working because of site closures or other reasons not already covered by FMLA.
Who is a Qualifying Employer? Any employer, even those with fewer than the current FMLA threshold of 50 employees. The Secretary of Labor can exempt employers with fewer than 50 employees if complying with the law would threaten the viability of the business. It is unclear how this exemption would be granted or how lenient the Department of Labor (DOL) will be. The bill appears to exclude employers with fewer than 50 employees in a 75-mile radius from civil FMLA damages in an employee-initiated lawsuit. Employers with fewer than 25 employees are exempt from reinstating the employee if the employee’s position no longer exists following the leave due to operational changes caused by the public health emergency.
Who are Eligible Employees? Employees must be employed by the employer for at least 30 days and have a minor child whose school or daycare is closed. Certain healthcare workers are excluded from coverage.
How much do we pay? The first 10 days do not need to be paid. The employee chooses whether to use other paid leave or take unpaid leave. The following 10 weeks must be paid at 2/3 of the employee’s rate of pay. Family-leave pay is capped at $200 per day, $10,000 in total.
3. How Are Businesses Going to Pay for This?
Employers who provide the above leave will be eligible to receive a 100% payroll tax credit for these costs. Employers may deduct up to $200 per day for employees who are taking care of others. Because this comes from the social security contribution, any amounts in excess of the social security liability will be paid for directly by the Treasury. The tax credit for family leave is up to $200 per day, not to exceed $10,000. For the self-employed, these credits will be applied against the self-employment tax.
4. What Can Employers Do Now?
Examine your current policies to determine what type of policy updates you should consider and how you will communicate these changes to your workforce. Short-term amendments to your FMLA and paid-time off policies will need to be considered. Employers should also be examining the potential financial impact of the law and whether any anticipated workforce changes could be problematic once this law passes.
The law mandates DOL produce a notice posting and additional guidelines within seven days.
The United States Senate just rubber stamped the House version of emergency measures to help employees and families in response to the COVID-19 pandemic during this National Emergency. The law includes provisions you have likely been following closely. President Trump is expected to sign the bill this evening and it is expected to go into effect on April 2. Below, we’ve broken down what employers need to know now to prepare their business for sick and family leave in the era of COVID-19.
1. Emergency Sick Leave:
What does the sick leave entail?: Eighty hours of sick leave to be provided for full-time employees through the end of the year for a qualifying need. Part-time employees are eligible for an estimated number of typical hours for a part-time employee working a two-week period.
Who is a Qualifying Employer? Employers with fewer than 500 employees.
Who are Eligible Employees? Employees who have a qualifying need which includes:
• complying with a physician directive that they have COVID-19 or may threaten exposure to others;
• caring for a family member who has been infected or may threaten exposure to others; or
• caring for a child whose school or daycare is closed due to COVID-19 precautions.
The above qualifying needs only apply where the employee cannot otherwise perform their job while complying with the physician’s directive or caring for a family member or child.
How much do we pay? Employers are required to pay employees their normal wages or the minimum wage at the federal/state/local level, whichever is the higher. Sick-leave pay is capped at $511 per day ($5,110 in total) per employee for the employee’s own health-related absence and $200 per day ($2,000 in total) for caring for a family member or child.
Interaction with Current PTO Policy: Emergency sick leave must be provided in addition to any sick leave already provided by the employer.
2. Emergency Family Leave:
This part of the law expands the Family and Medical Leave Act (FMLA) for employees who need to take longer term leave through the end of the year because of closed schools or daycare. It does not extend benefits for those not working because of site closures or other reasons not already covered by FMLA.
Who is a Qualifying Employer? Any employer, even those with fewer than the current FMLA threshold of 50 employees. The Secretary of Labor can exempt employers with fewer than 50 employees if complying with the law would threaten the viability of the business. It is unclear how this exemption would be granted or how lenient the Department of Labor (DOL) will be. The bill appears to exclude employers with fewer than 50 employees in a 75-mile radius from civil FMLA damages in an employee-initiated lawsuit. Employers with fewer than 25 employees are exempt from reinstating the employee if the employee’s position no longer exists following the leave due to operational changes caused by the public health emergency.
Who are Eligible Employees? Employees must be employed by the employer for at least 30 days and have a minor child whose school or daycare is closed. Certain healthcare workers are excluded from coverage.
How much do we pay? The first 10 days do not need to be paid. The employee chooses whether to use other paid leave or take unpaid leave. The following 10 weeks must be paid at 2/3 of the employee’s rate of pay. Family-leave pay is capped at $200 per day, $10,000 in total.
3. How Are Businesses Going to Pay for This?
Employers who provide the above leave will be eligible to receive a 100% payroll tax credit for these costs. Employers may deduct up to $200 per day for employees who are taking care of others. Because this comes from the social security contribution, any amounts in excess of the social security liability will be paid for directly by the Treasury. The tax credit for family leave is up to $200 per day, not to exceed $10,000. For the self-employed, these credits will be applied against the self-employment tax.
4. What Can Employers Do Now?
Examine your current policies to determine what type of policy updates you should consider and how you will communicate these changes to your workforce. Short-term amendments to your FMLA and paid-time off policies will need to be considered. Employers should also be examining the potential financial impact of the law and whether any anticipated workforce changes could be problematic once this law passes.
The law mandates DOL produce a notice posting and additional guidelines within seven days.
This post was edited on 3/19/20 at 9:38 am
Posted on 3/19/20 at 8:56 am to Clint Torres
quote:
Sick-leave pay is capped at $511 per day
If that's all then i'm going into work sick
Posted on 3/19/20 at 8:59 am to Clint Torres
quote:
Who is a Qualifying Employer? Employers with fewer than 500 employees.
Posted on 3/19/20 at 8:59 am to Clint Torres
Good info. Where did you find this?
Posted on 3/19/20 at 9:01 am to Clint Torres
quote:
Who are Eligible Employees? Employees who have a qualifying need which includes:
• complying with a physician directive that they have COVID-19 or may threaten exposure to others;
• caring for a family member who has been infected or may threaten exposure to others; or
• caring for a child whose school or daycare is closed due to COVID-19 precautions.
So if your business is forced to close but you don't have corona/kids you are just fricked and have to use PTO?
This post was edited on 3/19/20 at 9:02 am
Posted on 3/19/20 at 9:01 am to TH03
You realize how many businesses are affected by this law?
Just the law has the potential to bankrupt many of these businesses.
Just the law has the potential to bankrupt many of these businesses.
Posted on 3/19/20 at 9:03 am to TigerFred
quote:
Link?
Sent to us in email from our law firm. This firm specializes in federal gov't.
This post was edited on 3/19/20 at 9:05 am
Posted on 3/19/20 at 9:05 am to TigerFred
Huh? I was just making a joke because my company is more than 500 employees.
Is this sick leave being paid out from the federal funds?
Is this sick leave being paid out from the federal funds?
Posted on 3/19/20 at 9:06 am to TH03
quote:
Is this sick leave being paid out from the federal funds?
frick no
Posted on 3/19/20 at 9:08 am to Clint Torres
My company already implemented a policy that is much better than this law.
#blesst
#blesst
Posted on 3/19/20 at 9:08 am to TH03
No, it appears employers can get a $200 credit per day, no matter how many employees use this if I'm following correctly. Also love that this excludes large companies. It's bullshite.
Posted on 3/19/20 at 9:09 am to Clint Torres
So the government just helped the citizens by crushing small business?
Posted on 3/19/20 at 9:09 am to SlowFlowPro
Then yeah, a small business who isn't bringing in their normal revenue because of all of this is in between a rock and a hard place here.
Posted on 3/19/20 at 9:10 am to TH03
No.
Tax credits.
Whoopdie fricking doo
By the time those tax credits role around the business will be bankrupt for having to payout to the employees 3-4 months before the credit would even apply. Wonderful.
Lets say I have 300 employees. I have to pay out $1,533,000 with no income coming in on top of any leave that is already offered.
Tax credits.
Whoopdie fricking doo
By the time those tax credits role around the business will be bankrupt for having to payout to the employees 3-4 months before the credit would even apply. Wonderful.
Lets say I have 300 employees. I have to pay out $1,533,000 with no income coming in on top of any leave that is already offered.
Posted on 3/19/20 at 9:11 am to Clint Torres
Self employed consultant here- suddenly no customers- and little income-4 dependents - 2 kids in college- one in HS now home . Ruin ahead.
My question, should I eat the little edibles or the big ones?
My question, should I eat the little edibles or the big ones?
Posted on 3/19/20 at 9:12 am to Clint Torres
quote:
Who is a Qualifying Employer? Employers with fewer than 500 employees.
Well, frick.
At least my wife's company is smaller, but she already works from home and probably wouldn't qualify unless one of us actually gets sick because of:
quote:
The above qualifying needs only apply where the employee cannot otherwise perform their job while complying with the physician’s directive or caring for a family member or child.
Posted on 3/19/20 at 9:13 am to GRTiger
quote:
My company already implemented a policy that is much better than this law.
Yeah your company is fricked.
quote:
Interaction with Current PTO Policy: Emergency sick leave must be provided in addition to any sick leave already provided by the employer.
Posted on 3/19/20 at 9:13 am to TigerFred
And the ones who can afford it and exempt. Sheesh.
Posted on 3/19/20 at 9:14 am to TigerFred
quote:Yep. We can work from home without missing a beat. But my last employer it would’ve been impossible to work from home for 90% of the positions and with about 35 employees averaging somewhere in the $40-45k/year range it would’ve cost $100-120k a month for them to continue making payroll while the government mandated everything shut down. Good luck trying to keep the business from going bankrupt with those kinds of expenses and no revenue for possibly a few months
Just the law has the potential to bankrupt many of these businesses.
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