What we know (and do not know)- for employers. Here is a DOL clarification on the Families First Coronavirus Response Act as of late 3/22. https://www.dol.gov/agencies/whd/pandemic ( <------ read this please)

Clear as mud? In summary, there are 3 different tax credits to pay qualifying employers (these are all government employers and also for businesses under 500 employees, there will be some exceptions for under 50 employees and also for health care providers - unfortunately, we do not know what the exceptions are or how to get them yet).

The 6 qualification reasons why sick leave must be paid for qualifying employees are listed in the March 3/22 DOL article. https://www.dol.gov/agencies/whd/pandemic

• Reasons 1, 2, 3- The employee is sick due to COVID or seeking treatment or under isolation or quarantine order. If so, then the employee must be paid sick leave per the FFCRA up to $511 per day for up to 80 hours (or their regular hours if less than 80 hours) over 2 weeks with a cap of $5,110 (their regular pay rate, 100%). They can go unpaid or use accrued PTO the rest of the time (after the first 80 hours) assuming the employer has work for them. Protected for up to 80 hours / 2 weeks (pro-rated for part-time) of leave under the FMLA.
• Reasons 4 or 6 - A qualified family member is sick or seeking treatment due to COVID or the employee is experiencing any other "substantially-similar condition". Then the employee must be paid up to $200 per day for 80 hours (or their regular hours if less than 80 hours) over 2 weeks with a cap of $2,000. Same as above with being unpaid or using PTO for the rest of the time assuming the employer has work for them. The employer can reduce the employee's pay to 2/3 (67%) of the regular rate as long as the 2/3 applicable state or federal minimum wage is met. Also, the tax credit will only be for 67%. Protected for up to 80 hours / 2 weeks (pro-rated for part-time) of leave under the FMLA.
• Reason 5 - Childcare is different and gets paid more. If childcare for a qualified child is unavailable and the employee is unable to work remotely, then the employee must be paid up to $200 per day over 12 weeks with a cap $12,000 (First two weeks are sick leave, next 10 weeks are expanded FMLA). The employer can reduce the employee's pay to 2/3 of the regular rate as long as the 2/3 minimum wage is met. For child care reasons only -the employee can choose to use accrued time off to make up the other 1/3 of pay. An employee is protected under FMLA while the child is out of school (up to 12 weeks). The employee decides if they choose 2/3 pay for the child care reason versus full-time pay as a remote worker (if that is even an option).

NOTES:

• An employee can choose to use PTO (at their regular rate)or throughout this time off. An employer cannot force them to use it (employer should use tax credit) unless their policy is already clear regarding FMLA and PTO use. If so, follow your policy. Check your state laws! (This is not the time to change your policy per the law).
• Unemployment may cover the unpaid weeks, particularly if no work is available at this time (all states have different rules on partial or temporary unemployment and if they are complying with the federal unemployment law for COVID 19).
• The employer receives a tax credit for this paid leave up to the limits listed ($2000, 5111 and 10000 respectively).
• Tracking of time off and reasons are very important. No official forms are out yet.
• Employers must comply as of April 2, however, the government announced that employers can start following when the law was signed, March 18, and get the tax credit.
• Employers not having work available or unable to work remotely do not qualify for the tax credit per the FFCRA tax credit nor do employees qualify for paid sick or family leave. Unemployment usually will cover some of this (again, all states have different rules).
• Now regarding layoffs and not falling under the 6 reasons, the employer can choose to have the employee burn out PTO while keeping employees employed – then go to partially or fully unemployed. (all states have different rules on partial or temporary unemployment)
• Is a government-mandated shut down/ lock-in/ stay home order for my community a qualifying reason under #1 if I cannot work remotely? We do not know the answer to that yet. Stay tuned.

I hope this is helpful during this challenging time. Wendy Sellers, The HR Lady

PS: See my download files for the updated excel sheet explaining this as of 6pm.

• https://thehrlady.com/downloads