Authored by: Dean R. Dietrich
Congress and the President have passed legislation that is designed to provide additional support to employees of small businesses and local government units in light of the Coronavirus Pandemic. While many of the details still need to be disclosed and reviewed, it appears that the legislation includes the following:
- This new legislation only applies to businesses with less than 500 employees and all local government units;
- The legislation must take effect within 15 days of March 18;
- The legislation will provide additional leave benefits for affected employees; however, such additional leave benefits will expire on December 31, 2020, unless extended by action of the Federal Government;
- These additional leave benefits would not apply to healthcare providers and emergency responders;
- Businesses with fewer than 50 employees are exempt from the additional leave requirements if the business can show that the requirements would jeopardize the viability of the business as a going concern;
- Employees would be eligible to request up to 80 hours of paid leave for full-time employees and a pro-rated paid leave for part-time employees with the amount of pay limited to $511 per day if the employee is requesting time off due to his/her medical condition and $200 per day if the employee is requesting time off to care for another person with a Coronavirus condition or being required to stay home to care for children in the event of a school closing;
- The leave is limited to employees who are unable to work at the business or unable to work from home and the employee is (1) subject to a government quarantine or isolation order; (2) experiencing symptoms waiting for a diagnosis regarding the Coronavirus; or (3) employee has to care for a son or daughter who is at home due to school being closed or childcare being unavailable.
- The first 10 days of such leave would be considered unpaid although the employee could use accrued leave.
- An employer that has less than 50 employees and does not provide FMLA leave may still be required to provide these particular benefits to any employee working for the business that has worked for a period of 30 days for the business.
- This special leave relates to situations where the employee is unable to work due to a Coronavirus-related condition or has to care for a son or daughter if school is closed or childcare is unavailable.
The current Bill provides that a refundable tax credit will be provided to those employers who pay sick leave according to the provisions of this new Bill. How that will be implemented still remains an open question.
We will continue to keep you advised regarding developments on this new family leave benefit.
