On Wednesday, March 18, 2020, the U.S. Senate voted to approve the Families First Coronavirus Response Act that was passed by the U.S. House of Representatives over the weekend. President Trump signed the bill into law shortly afterward.
The Act requires employers to provide paid leave for some employees related to the coronavirus (COVID-19) pandemic, among other measures.
Emergency Paid Sick Leave
The Act requires two weeks of paid sick leave for government workers and employees of companies with fewer than 500 employees. Leave must be made available immediately to workers who are symptomatic or are under an order or advice to quarantine or self-isolate, who have to care for a family member under such an order or advice, or who have a child whose school or child care facility has closed (or whose child care provider is unavailable) due to the coronavirus.
Emergency Family and Medical Leave Act
The Act provides FMLA rights for some employees of companies with fewer than 500 employees, requiring partially paid leave after 10 days when an employee is unable to work or telework due to school or child care closures related to the coronavirus.
The Act provides funding for economic assistance and requires health plans to cover COVID-19 testing at no charge. A refundable tax credit for employers that provide paid leave benefits as required by the Act is also included. The U.S. Treasury is expected to use its regulatory authority to advance funds to some small businesses to cover the cost of providing paid sick leave.
Have More Questions?
If you have questions or need help determining the impact of the Act on your business, call your Aldrich Advisor today.