Legal Blog

Families First Coronavirus Response Act

On March 14, the House passed emergency legislation to assist with paid sick leave during the pandemic. The Senate is expected to vote this week, but the President has expressed his support for the bill. The provisions will go into effect 15 days after the date of enactment and expire on December 31, 2020. Below is a summary of the most significant provisions for employers:

Expansion of the FMLA

  • Provides 12 weeks of job-protected paid leave;
    • However, the first 14 days may be unpaid and employees may use other PTO;
    • The remainder must be paid at 2/3 an employee’s regular rate of pay.
  • Paid leave must be afforded to employees working for an employer at least 30 days, and who need leave to care for a child if the child’s school or place of care has closed related to coronavirus.
  • These payments are limited to $200/day.

Paid Sick Leave

  • Employers with fewer than 500 employees must provide full-time employees 2 weeks (80 hours) of paid sick leave. Part-time employees are due paid sick leave in an amount equal to the number of hours they typically work in 2 weeks;
  • Employees may take the paid leave for the following coronavirus related reasons:
    • To self-isolate because employee has coronavirus;
    • To obtain medical diagnosis or care if experiencing coronavirus symptoms;
    • To comply with recommendations of a public official or health care provider as stated above;
    • To care for family members for the same reasons; and
    • To care for a child whose school or place of care has closed related to coronavirus.
  • Employers must compensate employees for any paid sick leave at the higher of their regular rate of pay or minimum wage for leave related to their own symptoms, capped at $511/day, or exposure, and 2/3 regular rate to care for a family member, capped at $200/day.
  • This is in addition to paid sick leave already afforded by employers prior to the enactment date.

The bill also provides $1 billion in emergency unemployment insurance (UI) relief to the states.

Coronavirus: Five Issues Employers Should Address

  1. Expanded Paid Leave: Review and consider how to temporarily expand your paid leave policy. However, consider the pending federal legislation prior to rolling out a temporary policy and its applicability.
  2. Know your Restrictions and Obligations: During a pandemic, employers have additional rights under the ADA’s direct threat exception, as well as the general duty under OSHA, to ask questions to detect potential coronavirus cases and protect your workforce.
  3. Preventative Measures: You can and should require your employees to engage in specific preventative measures, like hand washing and self-quarantining, the same way you would require them to adhere to a code of conduct.
  4. Consider Teleworking Options: Consider what positions may easily work remotely with straightforward solutions like access to internal networks and additional laptops. For others, consider how much you can limit the person’s time in the office or onsite.
  5. Paying Employees if Businesses Close: Understand your obligations to pay employees if your business closes. Generally, non-exempt employees need only be paid for the hours they actually work, but exempt employees must be paid for the week if they work any part of it. Also, understand your obligations under WARN and other applicable laws if implementing mass layoffs.

 

If you have any questions on the Families First Coronavirus Response Act, please contact Katharine Batista at kbatista@offitkurman.com.

For more legal information in regard to the Novel COVID-19 outbreak, please check out our COVID-19 resource page here »

 

ABOUT KATHARINE BATISTA

kbatista@offitkurman.com | 267.338.1319

Ms. Batista is a Labor & Employment attorney that assists her clients when deciding issues like If my employee has exhausted her FMLA leave and remains out, am I required to hold her position open? Can I terminate my employee for testing positive for marijuana? Will this non-compete agreement be enforced? She helps her clients answer these and similar questions, and vigorously defends their decisions. She represents businesses, such as restaurants, hotels, banks, retailers and health care providers, in the spectrum of employment and labor claims. Specifically, Ms. Batista successfully defends employers against claims of discrimination and harassment, retaliation, wrongful terminations, and wage and hour violations. An employee’s post-separation conduct often requires legal advice and action too. Ms. Batista commonly represents her clients in bringing actions for breach of restrictive covenants and contractual interference, as well as defends them against such claims. Employment and labor law is ever-changing. Employers need to feel secure in how they manage their employees so they can focus on their business. Ms. Batista affords her clients that security.

 

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing full-service law firms in the United States. With over 200 attorneys in 14 offices that stretch from New York to North Carolina, we represent privately-held companies and families of wealth throughout their business life cycles. Our mission is to provide our clients with “The Better Way” to grow their organizations, protect their businesses’ and families’ wealth, and resolve their most challenging legal conflicts. In addition to our quality of attorneys and breadth of legal services, Offit Kurman is distinguished by our unique operational structure, which encourages collaboration rather than internal competition. The same approach that makes our firm attractive to legal practitioners gives clients unlimited access to experienced counsel in every area of the law. Trust, Knowledge, Confidence—in a partner, that’s perfect.

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