BULLETIN
March 25, 2020 (UPDATE)
On Tuesday, March 24th, the Department of Labor released additional guidance related to the Families First Coronavirus Response Act (Act) and other COVID-19 related employment issues. Here is a summary of the key updates:
Has anything significant changed since the original release of the Act?
- The effective date has been changed to April 1, 2020 (it was originally presumed to be April 2nd).
Can you remind me what the Act covers?
- The most significant provisions include pay and job protections for an employee’s qualified leave of absence if the person is actively employed by a company with less than 500 employees and the employee is unable to work (or telework) for a reason related to COVID-19.
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- Two weeks (up to 80 hours) of expanded family and medical leave at (100% of) the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis (maximum of $511 per day, or $5,110 total over the entire paid sick leave period); or
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- Two weeks (up to 80 hours) of expanded family and medical leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor (maximum of $200 per day, or $2,000 over the entire two week period); and
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- Up to an additional 10 weeks of expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19 (maximum of $200 per day or $12,000 for the twelve weeks that include both paid sick leave and expanded family and medical leave).
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- Under the above scenarios, employers would be eligible for a tax credit against the employer portion of social security taxes not to exceed the specified limitations.