Coronavirus Paid Leave Law
The paid leave law is changing with the passage of the Families First Coronavirus Response Act Bill. BlueFire HR is here to help your company navigate all the changes and how they could affect your business.
Current Situation
Most US companies do not offer paid sick leave. This means 25% of American workers – or 32 million people — do not have access to paid sick leave from their employers.
In 2019, paid sick leave varied by state.
The current FMLA threshold for covering employees is 50 or more.
The coronavirus could limit the workforce that is available for employers.
Most employees could lose their jobs if they are sick or need to take care of family members by being quarantined for up to 14 days.
Wednesday, March 18th, the Senate passed a new bill that focuses on giving more paid sick days to certain workers and covering more under FMLA.
The Senate approved a bill that would give workers affected by the new coronavirus additional resources and guaranteed paid leave.
This bill is the second proposal lawmakers are working on passing, and negotiations have already begun on the third and much larger bill.
The bill would guarantee free coronavirus testing and cover the cost of emergency-room visits and doctor fees.
It gives states a boost for unemployment insurance and food assistance.
Lawmakers expect the bill to be signed into law this week by the President and go into effect 15 days later.
Highlights of the Current Bill
Paid Time Off
The bill would give workers 10 days of paid sick leave to be available immediately during the coronavirus. It ensures sick leave to those that are quarantined related to the coronavirus.
For full-time employees this means 80 hours.
For part-time employees this means the number of hours the employee works on an average over a two-week period.
There is no minimum tenure of employment.
Employers cannot require employees to exhaust other forms of paid leave before using the new paid leave.
If your business currently does not provide two weeks paid leave, and you have fewer than 500 employees, your company will be required to give employees job-protected paid leave the moment the bill is passed into law.
Under the legislation, employers initially pay for the sick leave but are fully reimbursed by the federal government within three months through refundable tax credits that count against employers' payroll tax.
Workers who are covered by the guaranteed ten days paid sick leave during the outbreak will include all federal government employees, gig economy workers, and self-employed workers.
Paid Leave (Temporary Expansion of FMLA)
The bill would create a new federal emergency paid leave program for those caring for a child due to the coronavirus-related school closings.
The bill allows FMLA to be used for a “qualifying need” which relates to the coronavirus health emergency.
Eligible employees would receive benefits for a month (up to three months or 12 weeks) and would amount to two-thirds of the individual's average monthly earnings.
Those receiving pay or unemployment compensation directly though employers aren’t eligible.
Employees are eligible if they have worked for the employer for at least 30 days.
Additional Funding
It also includes money to expand programs for workers who have been laid off from their jobs, including additional funding for states’ unemployment programs.
Details
If the bill is signed and your business falls within the above requirements, an employee may claim paid leave for any of the following reasons:
They have been exposed to or exhibit symptoms of the coronavirus.
They are recommended to quarantine by a healthcare provider and cannot work from home.
They need to care for a family member who has been exposed to or exhibits symptoms of the coronavirus.
They need to care for a child younger than 18 years old because their school or their childcare provider is unavailable.
Provisions and Issues
If your company already provides two weeks of sick leave, this bill might not change much for your current policy.
Thousands of employers previously not subject to the FMLA may be required to provide job-protected leave to employees for a COVID-19 coronavirus-designated reason.
Millions of workers will not be covered by the paid sick provisions because the bill does not apply to companies with more than 500 employees.
Some private companies with over 500 employees are stepping up and offering paid sick leave.
Companies with fewer than 50 employees can request exemptions.
Institutions that employ health care workers, including hospitals and nursing homes, can request exemptions regardless of size.
These provisions are temporary and will remain in effect through the end of the year.
Employers will also be required to provide notice to their employees through postings and policies.
Many states are considering passing their own relief bills.
The Covid-19 situation is rapidly changing, and FutureSense is here to help. We will continue to update you with the changes that affect our clients and network with anything HR related.
We are in this together. Call us anytime.
About FutureSense
FutureSense is a management consulting firm that provides integrated solutions to build and sustain human capital capacity. The firm can work with you by offering support and guidance to manage your workforce. To learn more about FutureSense, please visit FutureSense.com.
