Coronavirus Response Includes First Federal Paid Leave Law

The Families First Coronavirus Response Act (FFCRA) includes the first nationwide federal paid leave law affecting private sector employers. The leave law applies only to employers with 500 employees or fewer. Larger employers are not affected, and those with fewer than 50 employees can request to be exempted due to cost burdens. The FFCRA leave law took effect on Apr. 1 and sunsets on Dec. 31, 2020. It is available only to employers that remain in operation, and only for cases where their employees are unable to work due to coronavirus-related issues; employees must apply for leave (for details see https://www.fmlainsights.com/irs-identifies-the-documentation-to-support-need-for-paid-sick-and-paid-fmla-leave-and-for-employers-to-obtain-tax-credit/). Employers must provide 80 hours at 100% of usual pay for full-time and part-time employees quarantined or seeking diagnosis for COVID-19 symptoms, and 66% of usual pay to care for a quarantined loved one including children under 18. The leave can be taken intermittently only if the employee is working from home. To care for a child out of school, the FFCRA enables an additional 10 weeks of paid Family and Medical Leave Act (FMLA) leave at 66% of usual pay, with caps of $200 daily and $10,000 total (for 10 weeks, or $12,000 if all 12 weeks are taken at the FMLA 66% rate). Employees qualify for this leave after 30 days with the employer, rather than the usual FMLA qualification period. All these leaves are funded through a dollar-for-dollar employer tax credit for qualifying wages paid. To learn more about the FFCRA rules, visit https://www.dol.gov/agencies/whd/pandemic, and http://dmec.org/2020/03/30/dol-provides-details-about-small-employer-exception-under-ffcra/.

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