Congress Passes Coronavirus Sick Leave Law
The COVID-19 pandemic has made workers weary about what to do if they fall ill or need to care for a family member who has become sick with coronavirus or a child whose school has closed due to the outbreak. In response to these concerns, the federal government passed a new sick leave law, called the Families First Coronavirus Response Act (“FFCRA”). Though well-intentioned and a good start to addressing issues caused by the pandemic, the law is unsurprisingly imperfect. Hopefully there will be more acts of relief for workers and small businesses in this ongoing crisis.
What is the Families First Coronavirus Response Act?
The FFCRA provides employees with paid sick leave for reasons related to the coronavirus. Using a payroll tax credit, the Labor Department will reimburse businesses and nonprofits whose employees take leave under the law. In addition to paid leave, the law provides for additional leave under the Family Medical Leave Act to care for children whose schools have closed due to the illness and free coronavirus testing to all–even the uninsured. It also expands unemployment aid and expands food and medical aid programs.
Who qualifies for paid leave?
The law only applies to businesses with fewer than 500 employees, although the Labor Department may grant hardship exemptions to businesses with fewer than 50 employees if providing sick leave would jeopardize the business.
Who does not qualify? Emergency response workers, such as emergency responders and healthcare providers, do not qualify for paid leave under this law. On the other hand, self-employed workers (including independent contractors) who fall ill will receive a tax credit equivalent to the available paid leave under this law.
There are no requirements for an employee to prove his or her grounds for leave (sometimes called “certification”), but an employer may require an employee to provide reasonable notice after the first workday that an employee opts to take paid sick leave under this act.
What does paid leave include?
Under the new law, qualified workers will get 2 weeks of paid sick leave if they are under quarantine or isolation, are experiencing symptoms, or are seeking diagnosis or preventable care for coronavirus, or if they are caring for a sick family member. The law also provides up to 12 weeks of paid family and medical leave, equivalent to no less than two-thirds of one’s typical pay, to people caring for their children whose child care provider is unavailable or whose schools are closed because of coronavirus. Part-time workers can receive up to two weeks of paid leave, equivalent to their typical two-week wage.
What happens if an employer doesn’t comply?
Failure to provide paid leave under the FFCRA could subject the employer to requirements to pay both back pay and statutory damages equal to the amount of back pay. In addition, an employer may not discipline, discharge or discriminate in any other manner against an employee who takes paid sick leave under the act.
Critiques?
There are a few issues with the FFCRA. First, employees of larger companies don’t benefit from the law’s protections. It is true that some large companies, such as Walmart and Target, have implemented voluntary policies to provide paid leave for employees who are sick or quarantined because of coronavirus. But not every larger company will choose to do so.
In addition to limiting the employees who can benefit from the law, the FFCRA also places a monetary burden on smaller businesses, who - especially during these times - will have a harder time satisfying that burden, especially if large numbers of employees are affected. The tax credit is better than nothing, but with cash flow expected to be an issue for small businesses in the coming months, it might not be enough.
Furthermore, the law does not take effect until April 2, 2020, and it is not retroactive. Yet many parts of the country are already under stay-at-home orders and the virus is spreading significantly at a daily rate. Workers may be able to take advantage of other leave in the meantime, but that would effectively defeat the purpose of the law.
Contact Us
Please contact Small Law PC with any questions about compliance with the Families First Coronavirus Response Act or whether you qualify for leave under the law.