US House of Representatives Passes Coronavirus Response Bill

The US House of Representatives passed the Families First Coronavirus Response Act on a bi-partisan basis on Saturday, March 14^th. While the Act has not yet been passed by the Senate and signed by the President, the major portions of the Act are likely to become law in the coming days. The two most important provisions of the Act are the creation of paid sick days, changes to the Family Medical Leave Act (FMLA), and the creation of a paid leave benefit. A summary of these provisions is below; however, it is important to note that these are subject to change by the US Senate. It is also important to note that all provisions of the Act expire on December 31, 2020.

It is expected that the Department of Labor (DOL) will be issuing guidance on compliance with these provisions in the days following the Act’s final passage.

Paid Sick Days

 Perhaps most important to employers are the Act’s requirement for employers to provide an additional 80-hours (or two weeks) of paid sick leave to employees. This is in addition to paid leave already offered by the employer, if any. Leave must be paid at the employees’ regular rate of pay. Critically, the leave requirements only apply to employers with 500 or fewer employees and all public employers. The leave can only be used “to quarantine or seek a diagnosis or preventive care for coronavirus.” Alternatively, the leave may be used to care for a family member for purposes of quarantine, to seek a diagnosis, or to care for a child whose school or place of care has closed due to Coronavirus; however, employers need only pay two-thirds the employees’ regular rate for these absences. The Act also contains a provision providing a tax credit for employers to cover most or all cost of any paid sick leave given to employees under the Act.

FMLA Leave

 The Act also alters the FMLA to include all employees who have been on the job at least thirty (30) days. Eligible employees will be able to take up to twelve (12) weeks of protected leave to adhere to a requirement or recommendation to adhere to a quarantine protocol due to Coronavirus illness, or to care for a family member who is under quarantine. The Act also provides for job-protected leave to care for a child whose school or place of care has been closed (or if an alternative childcare provider is unavailable) due to Coronavirus.

 Paid Leave

The Act also creates an emergency paid leave benefit for qualifying workers. Workers can apply for a benefit through the US Social Security Administration. The benefit covers two-thirds of the worker’s average monthly wages or self-income up to $4,000. The benefit is available retroactively for anyone who has taken qualifying leave on or after January 19, 2020 (the day of the first Coronavirus diagnosis in the United States). The application process, which is not yet available, will be conducted mostly online through the Social Security Administration’s website. It is important to note that the new paid leave benefit will not be available for workers who receive paid leave offered by an employer or state unemployment compensation. It is unclear whether this benefit will be paid to individuals receiving paid sick leave under the Act.

Again, it is important to remember that the Senate has not yet taken up the house bill, meaning that these rules are not yet final. FDAR will continue to monitor the status of the bill and any changes made by the Senate. If you have a specific question regarding this or any other matter related to the Coronavirus response, please contact us at info@fisheldowney.com or call 614.221.1216.