H.R. 6201, Families First Coronavirus Response Act
Our first of many updates on new requirements and guidance to help you stay informed on all the impacts of COVID-19.
Governments have taken unprecedented action to protect their economy and citizens, leading to new challenges for employers and employees.
Over the next few weeks, we’ll be posting updates on new requirements and guidance to help you stay informed and up-to-date on all the impacts of COVID-19.
H.R. 6201 has passed through the House and the Senate with strong support, and is endorsed publicly by President Trump. This $100 billion bill will go into effect 15 days after President Trump signs the bill.
At a glance, here’s what’s covered in the bill:
- Free Coronavirus testing
- Provides over a billion dollars for food security initiatives (WIC, TEFAP, EBT, and the USDA)
- Expansion of paid sick leave requirements to include all employers with fewer than 500 employees. This paid sick leave will be in addition to any existing leave policies currently in place
- Expansion of leave requirements to include all employers with fewer than 500 employees. Unlike the current requirements, this update requires employers to pay employees for this leave after 14 days
- A tax credit for employers covering 100% of what they pay out to employees, with certain caps
- Additional funding to stabilize states’ unemployment insurance programs
- Additional funding to Medicaid
There are three provisions in the bill that cover employees that have to stay home from their jobs due to the coronavirus outbreak. At a high level, the following is covered in those three provisions of the Families First Coronavirus Response Act:
Emergency Paid Sick Leave Act
This portion of the bill applies to government employers as well as employers with fewer than 500 employees. These employers are required to provide two weeks of paid sick leave for people who become infected or have to care for someone who is infected. This includes individuals whose place of work or children’s school has been closed due to the virus. If the employee is quarantined or receiving care, they are eligible for payment at their regular rate. If the employee is caring for a family member or child, they are eligible for payment equal to two-thirds their normal rate.
The paid sick leave required under the bill must be provided in addition to whatever the employer already provides — employers are not allowed to change their policies to avoid the additional mandated leave, nor are they allowed to force employees to use existing vacation or sick time before receiving this benefit. Full-time employees are eligible for 80 hours of paid sick leave; part-time employees are entitled to the typical number of hours they work in an average two-week period.
Employers must pay for this benefit. Employers who are required to provide paid sick leave are eligible to receive refundable tax credits that can be used against the taxes imposed on employers for Social Security taxes. If the employee is quarantined or receiving care, they are eligible for up to $511 in credits per day. If the employee is caring for a family member or child, they are eligible for up to $200 in credits per day.
Emergency Family and Medical Leave Expansion Act
This portion of the bill temporarily expands the Family and Medical Leave Act of 1993. Thanks to this provision, more employees are now eligible for the coverage of the FMLA. The new act gives government employees and employees of companies with fewer than 500 employees the right to take up to 12 weeks of job-protected leave under certain conditions.
Unlike the current Family and Medical Leave Act, this includes employers with 50 or fewer employees, and reduces the eligibility requirement to include employees that have worked for 30 or more days. These conditions apply to employees that are “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.”
The first ten days of the emergency leave can be unpaid, though the employee can use any accrued sick leave or paid leave to cover that period. After the ten days have passed, employers are required to pay their full-time workers at a rate of two-thirds of their regular hourly rate for the hours missed. Part-time employees will be paid two-thirds of their regular rate for the average number of hours worked weekly over the past six months.
This benefit does not extend to employees if they are unable to work solely due to business closures.
Like the Emergency Paid Sick Leave Act, employers must pay for this benefit. Employers who are required to provide paid sick leave are eligible to receive refundable tax credits that can be used against the taxes imposed on employers for Social Security taxes. The maximum credited wages taken into account for each employee is capped at $200 per day and $10,000 for all calendar quarters.
Emergency Unemployment Insurance Stabilization and Access Act
The Families First Coronavirus Response Act provides $1 billion in grant funding for states to expand unemployment benefits for people who lose their jobs due to COVID-19. Half of those funds would be used for emergency grants for states that experience at least a 10 percent increase in unemployment stemming from the coronavirus outbreak, while the other half would be reserved for covering increased administrative costs of each state’s Unemployment Insurance program.
How it Works
Employees of covered employers are eligible for the following benefits:
Up to 80 hours (adjusted for part-time employees to match the average hours worked) of paid sick leave, available for immediate use regardless of length of employment, if the employee cannot work because they:
- are experiencing symptoms of COVID-19 and seeking a medical diagnosis, which is paid at 100% and capped at $511 per day and $5,110 in the aggregate.
- are subject to a government quarantine or have been told by a health care provider that they should self-quarantine due to COVID-19, which is paid at 100% and capped at $511 per day and $5,110 in the aggregate.
- are assisting an individual who must quarantine/self-quarantine for those reasons, which is paid at 2/3 the employee’s rate and capped at $200 per day and $2,000 in the aggregate.
- are caring for a son or daughter if their school/child care provider is unavailable due to COVID-19, which is paid at 2/3 the employee’s rate and capped at $200 per day and $2,000 in the aggregate.
- are experiencing any other substantially similar condition specified by the Secretary of Health and Human Services, which is paid at 2/3 the employee’s rate and capped at $200 per day and $2,000 in the aggregate.
Employees are also eligible for up to 12 weeks of expanded FMLA leave, unpaid during the first 10 days thanks to the coverage of paid sick leave, and then paid at 2/3 the employee’s rate, capped at $200 per day and $10,000 in the aggregate. This is available to anyone working for a covered employer after 30 days of employment for time to care for the employee’s son or daughter if the child’s school/child care provider is unavailable due to COVID-19 and the employee is unable to work. Unlike other iterations of the bill, expanded FMLA leave only applies to individuals with the above qualifying event.
Additional Details
Legislation is moving incredibly quickly. Expect to see additional requirements, guidance, and investment on a daily basis. We’ll be adding new legislation here as it passes.
The Labor Department has the option of exempting workers at any company with fewer than 50 employees if it determines that providing paid leave would jeopardize the viability of the business as a going concern. To see if you qualify, contact the Secretary of Labor’s office.
The federal government will fund testing for numerous groups (Medicaid, uninsured, veterans, military, and Native Americans). This bill also requires private health insurers to provide free testing, including all costs associated with the test itself, including emergency room stays and clinic visits. We recommend checking with your health care provider to ensure they are complying with this new regulation.
There are additional expansions in coverage for certain self-employed individuals. They can be reviewed here.
This article is not a substitute for legal advice.
