Families First Coronavirus Response Act

• March 24, 2020
• Paul Neiffer

On March 18, 2020, President Trump signed the Families First Coronavirus Response Act, which provides paid leave and paid sick leave for absences resulting from COVID-19.  There are two main provisions that stand out for farmers.

The Emergency Family and Medical Leave Expansion Act (FMLA) and the Emergency Paid Sick Leave Act.  The law goes into effect on April 2, 2020, and ends on December 31, 2020.  It applies to all employers with 500 employees or fewer.  Therefore it applies to almost all farmers.

Highlights:

• Employers with fewer than 500 employees must provide Emergency FMLA to employees and paid sick leave.
• Full-time employees get 80 hours of Paid Sick Leave.
• Employees who have worked for the employer for 30 or more calendar days are eligible for emergency FMLA.  There is no limitation of sick leave, therefore, if they were employed for one day, they qualify.
• Both provide leave for closure of a child’s school or care facility if the child is under age 18.
• Emergency FMLA provides 12 weeks of job-protected leave for the employee’s use due to certain stated conditions.
  • The first 10 days can be unpaid.  Employees may elect to use accrued paid leave but can’t be forced to.  After the first 10 days, leave is paid.
• If variable hours, you can based the weeks on the average hours worked per week during the previous six month period.
• Part-time employees receive Paid Sick Leave equal to the number of hours they work, on average, over a two week period.
• Employees are entitled to pay at 2/3rds of normal wage levels.

Emergency FMLA Specifics:

• Required pay is capped at $200 per day and a maximum of $10,000 per employee.
• Employees must give notice and Emergency FMLA is only in effect for the time that kids can’t attend school or day care due to COVID-19.
• Employers with less than 50 employees for 20 or more calendar work weeks in the current or previous year will not be subject to civil actions by employees, however, the Department of Labor can bring civil liability proceedings against the employer.

Emergency Sick Leave Specifics:

• Required to provide paid sick leave if the employee is unable to work or telework.
• Employees eligible include:
  • Subject to federal, state or local quarantine or isolation (several states at that level already),
  • Employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19,
  • Employee is experiencing the symptoms,
  • Employee is caring for a son or daughter if the school has been closed due to COVID-19,
• Full-time employees are entitled to 80 hours of paid sick leave.
• Part-time employees based on hours worked in typical two week period.
• Pay is capped at $200 per day and an overall $2,000 total per employee.
• However, it can be up to $511 per day or $5,110 if directly affected by COVID-19.

Payroll tax credit for Sick Leave.

• A refundable credit against the employer’s share of Social Security taxes for the paid sick leave even if it exceeds the employer’s tax liability.
• Self-employed Paid Sick Leave Credit is available equal to 67% of qualified sick leave.  Details to be provided by the IRS.
• Payroll Credit for Emergency Family Leave based on the leave paid.
• Self-employed Credit for Family Leave with details to be provided by the IRS.

The bill text can be found here.

This is the first response by Congress.  There likely will be additional responses in the next few days.  We will keep you posted.

 

 

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