Emergency Sick-Pay Required Notice
As you know, Congress recently passed the Families First Coronavirus Response Act (FFCRA) legislation in response to COVID-19 that may impact your company and your employees. We want to provide a quick summary of the key provisions and changes you need to be aware of. These provisions take effect on April 1, 2020 and only affect employers with fewer than 500 employees.
UPDATE: The Department of Labor has clarified the eligibility for the FFCRA
If employees cannot work as the result of a government “stay at home” order, they are not eligible for FFCRA relief. Nor are they eligible if their employer has reduced/eliminated hours due to economic decline as result of COVID-19 response. The FFCRA only applies to workers who were directly affected by the virus or are caring for someone affected by the virus.
Emergency Paid Sick Leave:
Employers must offer employees 80 hours of paid sick leave (up to monetary caps) to quarantine, to seek a diagnosis or preventive care for coronavirus, or to care for a child.
Emergency Family and Medical Leave
Employees can now take up to 12 weeks of job protected leave (2 weeks unpaid followed by 10 weeks of paid leave up to monetary caps) if they are unable to work (including by telecommuting) due to a need to care for a child whose school or childcare provider is closed or unavailable due to the Coronavirus outbreak.
Paid Leave Tax Credits
To help bear the cost of the new paid-leave requirements, employers can offset the amounts paid from employment taxes and otherwise seek refunds additional payments. Our software developers are working diligently to get this in place.
**Action Necessary** Employer Notice:
Employers will be required to post official notice of the new provisions in a conspicuous place on their premises. If you have active employees working remotely, please email the attached notice to meet the notification guidelines. Click here to download The Department of Labor's official poster.
Employers with fewer than 50 employees may seek an exemption with the Department of Labor if compliance will threaten the business as an ongoing concern.
Prohibitions and Penalties
Employers are prohibited from retaliating against employees who seek to take this expanded leave. Employers found to be in violation of the requirements may be subject to penalties and enforcement under the Fair Labor Standards Act or the Family and Medical Leave Act.
In a time of uncertainty, we are committed to helping you find clarity and the best solution for your company. Our mission is to be your best business decision. Don’t hesitate to contact your representative with any questions. We’re here to help.