The FFCRA does several things. Three items we feel are very important are:
The Families First Coronavirus Response Act covers all private employers with fewer than 500 employees (with potential exemptions for small businesses with less than 25 employees).
Businesses with fewer than 50 employees may qualify for exemption from the requirement (to provide leave due to school closings or unavailability of childcare) if the leave requirements would jeopardize the viability of the business as a going concern.
We expect The U.S. Department of Labor will issue additional details on the small business exemption soon. At this time, we advise small business owners wishing to seek the exemption to document why their business meets such criteria.
All employees of private employers with 500 employees or less, regardless of how long they’ve been employed, are eligible for up to 10 days of emergency paid sick leave. Employees will be eligible if they are unable to work (or telework) due to:
Please note that if a business decides to close or cancel work shifts for business reasons (i.e., lack of work), neither emergency paid sick leave nor expanded family leave will apply as they are available only to employees who are not working due to the specified reasons listed above.
Type of Leave |
Required Compensation |
Employee Emergency Sick Leave |
|
Full-Time Employee |
100% of pay, up to $511 per day or $5,110 for two weeks |
Part-Time Employee |
Average hours worked of two-week period |
Sick Leave to Care for Others |
|
Full-Time Employee |
Two-thirds (or 66.67%) of pay, up to $200 per day or $2,000 for two weeks |
Part-Time Employee |
Average hours worked of two-week period |
Expanded Family Leave |
|
Full-Time Employee |
Unpaid for first 10 days (unless Employee uses PTO or Emergency Sick Leave). On the 11th and onward, pay is 66.67% up to $200 per day for up to 12 weeks. |
The FFCRA prohibits employers from requiring an employee to exhaust accrued paid time off (PTO) or state/local paid sick leave. Employees are entitled to utilize federal emergency paid sick leave before using state or local paid sick leave or accrued employer-offered PTO.
Employers will receive 100% reimbursement for wages, health insurance costs, and payroll tax liability associated with the Act. Reimbursements will be an immediate, dollar-for-dollar tax offset against payroll taxes.
Contact us at www.budgetease.biz to find out how we can help you navigate this challenging time.