COVID-19: Families First Coronavirus Response Act Takes Effect April 1

3.25.2020

By Bryan H. Beauman and Kacey M. Coleman

The “Families First Coronavirus Response Act” – How will it affect you?

On March 18, the federal government enacted H.R. 6201, the “Families First Coronavirus Response Act.” We’re here to help you navigate the new rules and protect your business and your employees.

The legislation “guarantees free coronavirus testing, establishes paid leave, enhances Unemployment Insurance, expands food security initiatives, and increases federal Medicaid funding.” The law will significantly impact employers, especially relating to:

  • Paid sick time

  • Family and medical leave

  • Health coverage, and

  • Unemployment compensation. 

The law goes into effect April 1, so it is important for businesses to analyze the areas that will affect them and make plans to ensure compliance.

The Department of Labor issued more information on March 24 to help guide employers and employees, including:

Eligible employers affected by the law’s provisions are employers with fewer than 500 employees and government employers. The sick time and leave portions of the law are temporary, expiring December 31, 2020.

A summary of the full bill is available here. Key pieces to be aware of include the following:

C. Emergency Family and Medical Leave Expansion

This section amends the Family and Medical Leave Act to provide the right for employees to take up to twelve weeks of job-protected leave to employees who meet affected by COVID-19. The law covers employees under quarantine for COVID-19, caring for an at-risk family member, or caring for a child whose school or daycare has closed related to the disease. After two weeks of paid sick leave, employees will receive a benefit from their employers, no less than two-thirds of the employee’s usual pay.

E: Emergency Paid Sick Leave Act

This section provides two weeks of paid sick leave to employees under quarantine or seeking diagnosis of COVID-19, or to care for a family member or child. Full-time employees are entitled to 2 weeks (80 hours) and part-time employees are entitled to the typical number of hours that they work in a typical two-week period.

G. Tax Credits for Paid Sick and Paid Family and Medical Leave

This section provides refundable tax credits for employers on both qualified paid sick leave and paid family leave. Self-employed individuals will also be allowed to take a credit against self-employment taxes.

D. Emergency Unemployment Insurance Stabilization and Access

This section provides emergency grants to states to support administration of unemployment benefits, and federal funding for work programs and extended unemployment compensation benefits. This can provide assistance to employers who work with states to reduce hours instead of laying people off, with benefits offsetting wage losses.

Questions about compliance with the new law, and how it will affect your business? We are ready to help you work through this challenging time, and protect you, your business, and your employees and community. Please contact one of our Employment attorneys via email, or call us at 859-255-8581.

This article is intended as a summary of federal guidelines on the COVID-19 outbreak, and does not constitute legal advice.

Healthcare, Employment, Government, HigherEd, BHB, DTW, KGH, KMC, KWWAnn Mary QuarandilloArticles