Vogel Law Firm
  • Home
  • Professionals
  • Practice Areas
  • Blog
  • Careers
  • Client Portal
  • Testimonials
  • Contact

call us today
866-771-9930

  • Home
  • Professionals
  • Blog
  • Careers
  • Client Portal
  • Testimonials
  • Contact
  • X Close
CONTACT

BLOG

Families First Coronavirus Response Act:  What Employers Need to Know

On behalf of Vogel Law Firm | Mar 24, 2020 | COVID-19, Firm News

On March 19, 2020, President Trump signed into law the Families First Coronavirus Response Act (“FFCRA”).  Among other things, this law created new paid leave requirements:  (1) Emergency Paid Sick Leave and (2) Public Health Emergency Leave.  Below you will find answers to frequently asked questions from employers regarding this new law.

What are the paid sick leave requirements under the FFCRA?

FFCRA requires that employers provide full-time employees with eighty (80) of paid sick leave to be used by the employee if he/she is unable to work (or telework) due to a need for leave because:

(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 because of COVID-19;

(3)         The employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis;

(4)         The employee is caring for an individual subject or advised to quarantine or isolation;

(5)         The employee is caring for a son or daughter whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 precautions; or

(6)         The employee is experiencing substantially similar conditions as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

Part-time employees are also entitled to paid sick leave equal to the number of hours they work, on average, over a 2-week period.  This paid sick leave does not carry over year-to-year and expires on December 31, 2020.

Paid sick leave must be paid at the employee’s regular rate of pay, but compensation can be capped at $511 per day ($5,110 in the aggregate) if leave is taken for the employee’s own quarantine or symptoms and $200 per day ($2,000 in the aggregate) if leave is taken to care for another.

Employers are also prohibited from:

(1)         Requiring employees, as a condition of providing paid sick leave, to find a replacement employee to cover their missed shifts;

(2)         Requiring employees to use other paid leave before using paid sick leave provided under FFCRA; or

(3)         Retaliating against any employee, who takes paid sick leave or files a complaint about the FFCRA.

What are the public health emergency leave requirements under the FFCRA?

The FFCRA amended the Family and Medical Leave Act (FMLA) to provide employees with 12 weeks of job-protected emergency FMLA leave if the 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 a public health emergency.  Employees are eligible for this leave if they have worked for the employer for at least 30 calendar days.

The first ten (10) days of leave may be unpaid, but an employee may elect to use accrued vacation, paid time off, or other sick leave during this period of time.  The remaining leave would be paid by the employer at two-thirds (2/3) of the employee’s regular rate.  The compensation must be based on the number of hours the employee would otherwise normally be scheduled to work.  Paid leave for this reason can be capped at $200 per day and $10,000 in the aggregate.

Which employers are covered by the FFCRA?

FFCRA applies to all businesses with fewer than 500 employees.

When does the law go into effect?

The law is effective within 15 days of when it was signed, which means it will be in effect April 1, 2020.

Are there any exclusions?

Employers of employees who work as health care providers or emergency responders, may elect to exclude those employees from these requirements.  The law does not provide a definition for either type of employee, but it is anticipated that the Department of Labor (DOL) will provide further regulations on this issue in the near future.

The DOL further has authority to except small businesses with fewer than 50 employees from the emergency FMLA requirements “when the imposition of such requirements would jeopardize the viability of the business as a going concern.”  Again, the DOL is expected to issue regulations further explaining these provisions.

What are the available tax credits under the FFCRA? 

The FFCRA provides a tax credit equal to one hundred percent of qualified sick leave wages and one hundred percent of paid family leave wages required to be paid under the FFCRA for any quarter through 2020, subject to the following limitations:  For purposes of calculating the tax credit, qualified sick leave wages are limited to $511 per day per employee and cannot exceed 10 days for all calendar quarters; and paid family leave is limited to $200 per day per employee and cannot exceed $10,000 for all calendar quarters.

The tax credit is increased by the amount of qualified health plan expenses (i.e., employer-paid health insurance premiums) properly allocable to leave paid pursuant to FFCRA.  In addition, the tax credit is increased by the amount of the employer’s share of the Medicare component (1.45%) of FICA on paid leave required by the FFCRA.  Finally, employers will not be required to withhold the employee’s share or pay the employer’s share of the Social Security tax (6.2%) on FFCRA paid leave.

The credit reduces the employer’s share of Social Security tax liability.  If the amount of the credit exceeds the employer’s share of Social Security tax liability, the excess amount would be treated as a refundable credit.  However, if the employer has an existing outstanding employment tax liability, the IRS has discretion to apply the excess amount to the outstanding employment tax liability.

What should I be doing now?

For now, employers should be in good communication with their leadership teams and advisors, including employment lawyers and tax professionals who can assist with crucial planning in the days ahead. The DOL is required to distribute a notice (workplace poster) along with regulations for the FFCRA. The Secretary of Labor is expected to publish the poster within 7 days of the law’s enactment. Once we have the poster and DOL regulations, we will know more about the specific procedures and documentation that will be required under the FFCRA. The DOL will also observe a temporary period of non-enforcement for the first 30 days after the FFCRA takes effect as long as the employer has acted reasonably and in good faith to comply with the Act. “Good faith” exists when violations are remedied and the employee is made whole as soon as practicable by the employer, the violations were not willful, and the Department receives a written commitment from the employer to comply with the Act in the future.

 

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.  Use of and access to this website or any of the links contained or produced within the site do not create an attorney-client relationship between the Vogel Law Firm and the user or browser.  The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the Vogel Law Firm or any individual attorney.  Under no circumstances shall the Vogel Law Firm have any liability to you for any loss or damage of any kind incurred as a result of the use of the information or your reliance on any information provided.

  • Facebook
  • Twitter
  • LinkedIn

Categories

  • Bankruptcy (3)
  • Business Law (4)
  • Child Custody (1)
  • COVID-19 (27)
  • Criminal Defense (8)
  • Debtor/Creditor (2)
  • Divorce (2)
  • DNR (1)
  • DUI (1)
  • Employer Rights (20)
  • Employment Law (24)
  • Estate Planning (5)
  • Family Law (3)
  • Firm News (31)
  • Immigration (1)
  • Injuries (1)
  • IRAs (1)
  • Life Insurance (1)
  • Paid Leave (2)
  • Personal Injury (5)
  • Premarital Agreements (1)
  • Prenuptial Agreements (1)
  • The North Dakota Employer's Blog (6)
  • Uncategorized (59)
  • Unemployment Insurance (1)
  • Wrongful Death (2)

Archives

  • January 2021 (5)
  • December 2020 (5)
  • October 2020 (1)
  • September 2020 (1)
  • August 2020 (2)
  • July 2020 (2)
  • June 2020 (4)
  • May 2020 (9)
  • April 2020 (12)
  • March 2020 (12)
  • February 2020 (11)
  • January 2020 (2)
  • November 2019 (2)
  • September 2019 (1)
  • August 2019 (3)
  • July 2019 (2)
  • June 2019 (3)
  • May 2019 (2)
  • March 2019 (1)
  • January 2019 (1)
  • December 2018 (1)
  • November 2018 (1)
  • October 2018 (2)
  • September 2018 (2)
  • August 2018 (3)
  • July 2018 (2)
  • June 2018 (4)
  • March 2018 (1)
  • January 2018 (3)
  • October 2017 (1)
  • September 2017 (1)
  • June 2017 (4)
  • March 2017 (1)
  • January 2017 (1)
  • December 2016 (2)
  • October 2016 (2)
  • September 2016 (1)
  • June 2016 (1)
  • May 2016 (5)
  • April 2016 (1)
  • March 2016 (1)
  • February 2016 (2)
  • January 2016 (3)
  • December 2015 (1)
  • November 2015 (1)
  • October 2015 (1)
  • September 2015 (2)
  • July 2015 (1)
  • June 2015 (2)
  • April 2015 (1)
  • January 2015 (1)
  • December 2014 (1)
  • October 2014 (1)
  • August 2014 (1)
  • June 2014 (1)
  • May 2014 (1)
  • October 2013 (1)
  • June 2013 (2)
  • May 2013 (2)
  • January 2013 (1)
  • December 2012 (1)
  • November 2012 (2)
  • October 2012 (1)
  • February 2012 (1)

Recent Posts

  • The North Dakota Employer’s Blog: Mask Mandate Update
  • The North Dakota Employer’s Blog: Independent Contractor or Employee?
  • The North Dakota Employer’s Blog – My Employee Stormed the Capitol: Can I fire him for that?
  • The North Dakota Employer’s Blog: What Now? Stepping Away from the Edge
  • The North Dakota Employer’s Blog: North Dakota Legislature Convenes
Bg SubscribeSubscribe To This Blog's FeedFindLaw Network

Quality Attorneys. Quality Care.

Ultimately, we measure our success in terms of how we improve the lives of our clients.
We never forget that the most important part in any legal matter is the people involved.

Experience The Vogel Law Firm Difference

Quality legal service starts with contacting Vogel Law Firm. Call 866-771-9930 or submit the form to request a consultation.

Email Us For A Response

Experience The Vogel Law Firm Difference

Quality legal service starts with contacting Vogel Law Firm. Call 866-771-9930 or submit the form to request a consultation.

ECN | Employers Counsel Network
Fellow Litigation Counsel of America
Super Lawyers
Super Lawyers
Multi-Million Dollar Advocates Forum
Multi-Million Dollar Advocates Forum
Listed In Best Lawyers | The World's Premier Guide
ALFA International | The Global Legal Network

Fargo Office

218 NP Avenue
Fargo, ND 58102

Phone: 866-771-9930

Fax: 701-356-6395

Fargo Law Office Map

Bismarck Office

200 North 3rd Street,
Suite 201
Bismarck, ND 58501

Phone: 701-214-4393

Fax: 701-258-9705

Bismarck Law Office Map

Moorhead Office

215 30th Street North
Moorhead, MN 56560

Phone: 218-979-4994

Fax: 218-236-9873

Moorhead Law Office Map

Minneapolis Office

7300 West 147th Street,
Suite 304
Apple Valley, MN 55124

Phone: 952-236-4947

Fax: 952-898-4070

Apple Valley Law Office Map

Grand Forks Office

2825 36th Avenue South,
Suite A
Grand Forks, ND 58201

Phone: 701-203-4156

Fax: 701-864-2748

Grand Forks Law Office Map
  • Follow
  • Follow
  • Follow
Review Us
Employee Email

© 2021 Vogel Law Firm. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters