What every small business owner needs to know about Families First Coronavirus Response Act

As we face uncertain times as business owners, congress added another burden. On March 18, 2020 Congress passed and President Trump signed the Families First Coronavirus Response Act, H.R. 6201 or FFCRA. FFCRA becomes effective April 2, 2020 and ends on December 31, 2020.

Here’s what you need to know as a small business owner with employees. FFCRA applies to all business with less than 500 employees.

1. Emergency Paid Sick Leave Act- . This provision applied to full and part time employees.
   • Applies to full and part time employees that meet one of the following:
     1. The employee is subject to a Federal, State or local quarantine or isolation order related to COVID-19.
     2. The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
     3. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
     4. The employee is caring for an individual subject to a local quarantine or isolation order or who has been advised by a health care provider to self-quarantine.
     5. The employee is caring for the employee’s child if the child’s school or childcare provider has been closed or is unavailable due to COVID-19 precautions.
     6. The employee is experiencing a substantially similar condition to COVID-19 as has been identified by the Secretary of Health and Human Services
   • Full time employees entitled to 80 hours of sick pay, and part time employees is determined based on their regular bi-weekly time as determined by averaging their last 6 months of employment.
   • If absent under reasons 1-3 full pay, if absent for reasons 4-6 pay is 2/3 of normal pay.
   • Pay rate is the greater of the employees regular rate, Federal minimum wage or state or local minimum wages.
   • Limits on amount to be paid is $511 per day or $5110 total if employee meets reasons 1-3 above, and $200 per day or $2000 total if absent for 4-6 above.
   • EPSLA is use it or lose it.
   • An employee cannot be required to use their accrued paid time off before using EPSLA
   • Employer can enforce notice requirements for continued EPSLA if they wish.
   • Only applies to employees that cannot report to work or telework for the 6 reasons above
   • Employer cannot discipline, discharge or discriminate against an employee taking leave under EPSLA
   • Penalties for failure to pay EPSLA- considered a failure to pay minimum wages can result in having to pay the regular pay, plus an equal amount in damages as well as attorney’s fees.
2. Emergency Family and Medical Leave Expansion Act (EFMLEA)
   • Applies to employees employed for at least 30 calendar days
   • Employee is unable to work (or telework) due to a need for leave to care for the son or daughter under 18 years of age of such employee if the school or place of care has been closed, or the child care provider of such son or daughter is unavailable, due to COVID 19
   • Up to 12 weeks
   • Initial 10 days may be unpaid. Employee can request emergency sick pay above or use accrued paid time off.
   • Pay is 2/3 of regular pay but shall not exceed $200 per day and $10,000 total.
   • Possible exemption for small businesses with fewer than 50 employees from the EFMLEA requirements if the imposition of such requirements would jeopardize the viability of the business as a going concern. We are waiting on the Department of Labor to set up the standards.

If you have any concerns about this law or want a review of your policies contact us today at 832-919-6595 or schedule an appointment here https://www.boswelltexaslaw.com/appointments/