Families First Coronavirus Response Act - Expanded FMLA

With school starting in the next couple of weeks, employees may be challenged with childcare arrangements. Now is a good time for employers to revisit the Families First Coronavirus Response Act (FFCRA). The FFCRA was signed into law on March 18 to provide American workers affected by the pandemic with extended sick and family leave benefits. The package expands the Family and Medical Leave Act (FMLA) until the end of the year, creates two weeks of paid sick leave for childcare and other leave related to COVID-19, and provides tax credits to employers related to mandated paid leave through December 31, 2020.

This law applies to businesses and organizations with fewer than 500 employees, although employers may be exempt with fewer than 50. Here are some details.

Things to Know

Below are important components of the law:

• Paid sick leave. Employers must provide two weeks (up to 80 hours) of paid sick leave at the employee’s regular pay. If an employee is ill, is instructed to be isolated by a physician or government authority or is caring for a sick family member or child whose school has closed, employers must provide two weeks of paid leave. Part-time workers pay is based on their average hours over a two-week period. Benefits are capped at $511 per day and $5,110 total for employees on leave because of their own health issue, or $200 per day and $2,000 total to care for others.
• Expanded FMLA. Employers must provide two weeks of paid sick leave at two-thirds of the employee’s regular rate of pay for employees who need to take care of a child due to the closure of a school or day care center related to COVID-19. Employees are able to take up to an additional 10 weeks of FMLA at two-thirds the employees regular rate of pay when the employee has been employed at least 30 calendar days and is not able to work due the need to take care of a child due to the closure of a school or day care center related to COVID-19. This provision updates existing rules under the FMLA. Wages are capped at $200 per day and $10,000 total. Employers aren’t required to pay employees during the first 10 days off; however, they may choose to use accrued time off benefits at this time.
• Employer payroll tax credits. To help employers pay for time off, the law enables tax credits. Employers may claim a 100% refundable payroll tax credit on wages associated with paid sick and medical leave and other expenditures associated with health benefit contributions. Additional wages paid to staffers due to the law’s leave requirement aren’t subject to the employer portion of the payroll tax.

If you have questions about how the FFCRA applies to your business or organization, contact your Whittlesey advisor.