Congress has passed, and President Trump has signed, the Families First Coronavirus Response Act on March 18th, 2020.
Among other things, the Act requires certain employers with fewer than 500 employees to provide paid leave benefits to employees affected by the coronavirus outbreak. There will be exceptions in certain situations for business with less than 50 employees, however we are still waiting for additional guidance as to when this will be applicable. This requirement is effective 15 days after enactment expiring on 12/31/2020.
Th requirement applies to both paid sick leave and family leave.
Paid sick leave – employee is absent due to care provided for himself/herself or an individual that is subject to an isolation order. Also includes time away to care for children that can no longer attend school or daycare due to closures.
- Caring for self: Regular rate of pay, up to $511 per day for 10 days (max $5,110)
- Caring for others: not less than 2/3rd rate of pay, up to $200 per day for 10 days (max $2,000).
Family leave – employee is absent to care for a child that can no longer attend school or daycare due to closures.
- not less than 2/3rds rate of pay, up to $200 per day for 10 weeks (max $10,000).
Starting April 2nd, families that are employed by businesses that are subject to these new requirements for can be assured that they will receive compensation for up to ten weeks.
Employers will receive a 100% payroll tax credit (refundable) relating to wages paid plus certain costs of health care coverage. There will be adjustments for the employer paid social security and medicare taxes that relate to the wages paid.
We will continue to keep you updated as more information comes available.