Families First Coronavirus Act

Families First Coronavirus Response Act’s Employer Paid Leave Requirements
March 26, 2020 

This Update covers information provided by the U.S. Department of Labor on the Phase 2 legislation, formerly described as H.R. 6201. The NPA will continue to update this information as more details become available.
 
The information below supplements the Government Relations Update posted on March 20, 2020. We will provide more information on how employers can get tax credits, and SBA forgivable loans to cover these paid leave expenses when Phase 3 legislation the Senate passed last night is voted on in the House and is signed by the President.
 

I. Employers with fewer than 500 employees must provide paid sick leave to all employees:

 

Two weeks of paid sick leave (up to 80 hours depending on whether the employee is full-time or part-time) at the employee’s regular rate of pay when the employee is unable to work because of being quarantined per government order or health-care provider’s recommendation, or is experiencing COVID-19 symptoms and is seeking a medical diagnosis; OR
 
Two weeks (up to 80 hours depending on either full- or part-time status) of paid sick leave at 2/3 of their regular rate of pay if the employee is unable to work because of a true need to care for a quarantined individual or health-care provider’s advice, to care for a son or daughter under the age of 18, or if the employee is experiencing a condition like COVID-19 specified by federal agencies (none specified yet).
 
Note: Part-time employees are eligible for paid leave for the number of hours worked on average over a two-week period, measured by their pay over the prior 6 months.   
 

II. Employers with fewer than 500 employees must provide expanded paid family and medical leave to employees who were employed for at least 30 days:

 

Up to an additional 10 weeks of paid expanded family and medical leave at 2/3 of the employeee’s regular pay ONLY if they cannot work because of a true need to care for a son or daughter whose school is closed or their paid child-care provider is unavailable for reasons related to COVID-19. This means up to 12 weeks for full-time employees at 40 hours per week or the number of hours part-time employees normally work. This additional paid leave only applies to leave needed to care for a son or daughter under the age of 18.

 

III. Tax Credits to Help Employers Pay for these New Paid Leave Benefits and to Continue Health Insurance Coverage

 

As explained in the March 20th Update, tax credits will apply up to the full amount paid by the employer on a dollar-for-dollar basis for qualifying wages paid under these provisions up to the per diem and overall “aggregate” payment caps. Tax credits also apply for amounts paid or incurred to maintain the employee’s health insurance coverage. The Treasury Department’s guidance on this issue will be in a future update.

 
This GRC Update is not intended and should not be construed as legal advice to NPA members. Members should consult their own lawyers for legal advice.

Copyright © National Pawnbrokers Association 2020. All rights reserved.

Download PDF: COVID-19 and the American Workplace Download PDF Poster: Families First Coronavirus Response Act Employees Rights