Emergency Coronavirus Bill Passed by the U.S. House & Senate

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On March 18, 2020 the U.S. Senate passed the revised US House of Representatives’ Families First Coronavirus Response Act (H.R. 6201).  The bill now heads to President Trump’s desk where changes could be made, but it is expected to be signed.

As drafted, the bill applies to employers with fewer than 500 employees. The following is a summary of some of the highlights that will affect these employers:

  • 12 weeks of job-protected paid FMLA for Employees who have worked for the Employer for at 30 days.

    • Employees may elect to use accrued PTO during the first 10 days.

      • Employees may use the leave to care for a child under 18 whose school or daycare has been closed as a result of COVID-19.

    • Following the first 10 days of leave, employers must compensate employees by at least 2/3 of the employees’ regular rate of pay with a $200 per day cap and $10,000 aggregate.

  • Emergency Paid Sick Leave

    • Employers must provide full time employees with 80 hours of paid sick leave for circumstances related to COVID 19.

      • Part time employees are entitled to the number of paid sick time equal to the number of hours they work over an average 2-week period calculated with a 6 month lookback.

    • Paid sick time must be at the regular rate of pay with a cap of

      • $511 per day per employee and $5,110 max if the employee has COVID-19.

      • $200 per day per employee and $2,000 max if the employee is caring from children under 18 whose school or daycare has been closed

    • Employers must post notices of Employee’s leave rights.

    • These provisions will be effective within 15 days of President Trump’s signature and expire December 31, 2020.

To alleviate some of the financial burden, the bill provides for a limited refundable employment tax credit equal to the amount that an employer pays to an employee under this provision, i.e., up to $511, or $200 respectively, to a maximum of ten days per employee for the year.

Once the President has signed the final version of this bill into law the firm will provide an analysis of the requirements. 

As you face the day to day questions of balancing business concerns, the law, and health and safety, the firm is here to assist in any way we can.

*Note this article was updated 3/19/2020.