FFCRA for Employers
Just a few days ago, the House passed the Families First Coronavirus Response Act (FFCRA).
Qualifying for FFCRA Coverage
The FFRCA changes the threshold number of employees that must be employed by an Employer from 50 to 1 for purposes of Emergency Medical Family Leave. However, the FFRCA only applies to Employers with 500 employees or less.
Larger Companies with more than 500 Employees are not subject to the FFRCA. There is no 50-person minimum with the typical Family Medical Leave Act, and self-employed people can see some benefits.
Small and mid-size companies are required to provide two weeks of paid sick leave for all employees regardless of when they started work and up to 12 weeks of paid family and medical leave for employees affected by the Coronavirus who have worked at the company for at least a month.
- Sick leave is to be paid at the usual pay rate.
- Family leave is to be paid at two-thirds of the usual pay rate.
The House capped paid sick leave at $511 per day and paid family leave at $200 per day. In other words, paid sick leave would fully compensate employees earning up to about $130,000 a year for that two-week period, and paid family and medical leave would fully compensate employees earning up to about $75,000 a year for the three-month period.
An employer shall provide an employee with paid sick time for any of the following reasons:
- To self-isolate because the employee is diagnosed with Coronavirus.
- To obtain a medical diagnosis upon experiencing symptoms of Coronavirus.
- To comply with recommendation or order by a public official or health care provider because the physical presence of the employee would jeopardize the health of others because of exposure to Coronavirus or exhibition of symptoms.
- To care for or assist a family member who is self-isolating because of diagnosis, experiencing symptoms, or who is subject to an order that the presence of that person in the community would jeopardize the health of others due to exposure to the Coronavirus or symptoms.
- To care for the child of an employee if school or place of care is closed due to Coronavirus.
Full-time employees are entitled to 80 hours of paid sick time.
Part-time employees are entitled to the number of hours that such employee works on average over a 2-week period.
Benefits for Employers
- Employers receive tax credits for 100 percent of what they pay out to employees, with the above-noted limits.
- For employers with 50 or fewer employees, the Secretary of Labor can exempt the business from these requirements.
- Employers with fewer than 25 employees do not have to restore employees to their previous positions if no longer available.
Last Minute Important Changes
The earlier bill had additional benefits and changes that have been removed. For instance, the original bill expanded the definition of a family member. The final version brings that back down to immediate family members.
Given the short period of only 15 days between when President Trump signed the FFCRA into law and when it becomes law, make sure your business understands the ramifications and how it applies to your business. It’s essential to carry out the new law correctly.
Contact our Employment Law Firm
When in doubt, give our Jupiter, Florida based employment law firm a call at (561) 691-9048 for assistance. We are located at 1003 W Indiantown Road, #210, Jupiter, Florida 33458.
Again, should you have any questions regarding FFCRA do not hesitate to contact us.