Continuing our efforts to support our entrepreneurial clients, EntrePartner Law Firm is providing a resource for those who have questions about how to handle payroll and employee leave and how new legislation, the Families First Coronavirus Response Act, will affect their business.
The Families First Coronavirus Response Act (FFCRA) becomes effective on April 2, 2020 and ends December 31, 2020. The FFCRA has modified federal employment laws requiring businesses with fewer than 500 employees to provide emergency paid family and sick leave.
Quick Summary of Employer’s Obligations
Until April 2, employers will pay hourly employees for hours worked (if any) and salaried employees’ full weekly salary if employee worked ANY hours. Employees should take any accrued paid leave before April 2nd if they did not work and want to be paid.
After April 2, full-time employees that are infected, experiencing symptoms, caring for someone with COVID-19, or caring for a child that has had school or childcare closed due to concerns surrounding COVID-19 will receive 80 hours paid leave. Employees experiencing symptoms of COVID-19 will receive full wages unless wages exceed daily and total emergency leave wages maximums. Employees caring for a person infected with COVID-19 or caring for a child that has had school or childcare closed due to concerns surrounding COVID-19 will receive 2/3 of regular wages unless wages exceed daily and total emergency leave wage maximums.
After April 2, employees will receive 12 weeks leave with limited job protection for a public health emergency. The first 10 days of the 12 weeks leave will be unpaid leave. After 10 days, employees will receive 2/3 of regular wages unless wages exceed daily and total emergency leave wage maximums.
Employers will be reimbursed for the paid emergency leave through tax credits applied against employer’s Social Security tax obligation.
FOR A COMPLETE SUMMARY, PLEASE CLICK HERE
This alert is provided as a service to our clients and firm associates. While the information provided in this publication is believed to be accurate as of March 20, 2020, it is general in nature, subject to change, and should not be construed as legal advice.