Help for Small Businesses During the COVID-19 Crisis
I know that many small businesses in my district are suffering during this difficult time. I received the below information from an attorney’s office. I’m hoping it will offer details and help for you as deal with the legal requirements employers face.
I will continue to provide other information that I hope will be helpful in the coming days.
Families First Coronavirus Response Act
On Friday, March 13, 2020, the U.S. House of Representatives passed the Families First Coronavirus Response Act (HR 6201). The bill now goes to the Senate, which plans to take it up today. Although the Senate may change the bill, the House version gives us a sense of what Congress is thinking. Also, the House bill was cobbled together quickly, and as a result some of its provisions are ambiguous and conflict with other provisions. Many of those problems should be cleaned up during the reconciliation process that occurs before the bill is signed.
The House version contains the following provisions relevant to employers:
Testing: The bill requires private health plans to provide coverage for COVID-19 diagnostic testing, including the cost of provider, urgent care center and emergency room visits to receive testing. Coverage must be provided at no cost to the consumer.
Emergency Unemployment Stabilization Act: This portion of the bill provides government-paid “emergency paid leave benefits” under the Social Security Act to employees who:
are diagnosed with COVID-19;
are under quarantine (including self-imposed quarantine), at the instruction of a health care provider, employer, or a local, State or Federal official, in order to prevent the spread of COVID-19;
provide caregiving for an individual under quarantine (including self-imposed quarantine), at the instruction of a health care provider, employer, or a local, State or Federal official, in order to prevent the spread of COVID-19; or
provide caregiving because of the COVID-19-related closing of a school or other care facility or care program, for a child or other individual unable to provide self-care.
Employers are required to provide notification to laid-off workers of their eligibility to apply for coronavirus-related unemployment benefits.
The federal government will provide $1 Billion in emergency grants to states to help fund unemployment insurance programs.
Emergency Family and Medical Leave Expansion Act: Employers with fewer than 500 employees must provide family leave to any employee who has worked for the employer for at least 30 days if the employee has a need for leave for one of the following reasons:
To comply with a recommendation or order by the governing health authority or a health care provider on the basis that:
The employee’s physical presence at work would jeopardize the health of others because: (a) of the employee’s exposure to the coronavirus; or (b) the employee exhibits symptoms of the coronavirus; and
The employee cannot both perform his or her job dutiesand comply with such recommendations or order.
To care for a family member of an eligible employee with respect to whom a health authority or health care provider determines that the family member’s presence in the community would jeopardize the health of other community members because: (a) of the family member’s exposure to the coronavirus; or (b) the family member’s display of coronavirus symptoms;
To care for the employee’s son or daughter if the child’s school or place of care has been closed, or the child-care provider is unavailable, due to a public health emergency.
The first 14 days of family leave is unpaid, although an employee may elect to use any available paid leave (the employer may not require an employee to do so). After that 14-day period the employer must provide paid leave for the following 14 days. It is unclear whether this paid family leave is in addition to the paid sick leave discussed in the bullet point directly below.
Employers with 50 or fewer employees may be exempted from the requirement if they can establish an undue hardship.
Emergency Paid Sick Leave Act: This portion of the bill requires employers with fewer than 500 employees to provide paid sick leave to employees for any of the following uses:
To self-isolate because the employee is diagnosed with coronavirus;
To obtain a medical diagnosis or care if the employee is experiencing coronavirus symptoms;
To comply with a recommendation or order by the governing health authority or a health care provider on the basis that the employee’s physical presence at work would jeopardize the health of others because of (a) the employee’s exposure to the coronavirus; or (b) the employee exhibits symptoms of the coronavirus;
To care for or assist a family member who (a) is self-isolating because the family member has been diagnosed with COVID-19; or (b) is experiencing symptoms of coronavirus and needs to obtain medical diagnosis or care;
To care for or assist a family member with respect to whom a public official or health care provider determines that the family member’s presence in the community would jeopardize the health of other community members because of (a) the family member’s exposure to the coronavirus; or (b) the family member’s display of coronavirus symptoms;
To care for the employee’s child if the child’s school or place of care has been closed, or the child’s child-care provider is unavailable, due to coronavirus.
Under this bill, full-time employees are entitled to 80 hours of paid sick leave, and part-time employees are entitled to the average number of hours that they work in a two-week period. Sick leave is paid at the employee’s regular rate, but leave relating to children and family members can be paid at two-thirds the regular rate.
Employers must post a notice created by the Department of Labor notifying employees of their right to paid sick leave under this law.
Paid sick leave under this bill is in addition to any other paid leave employers make available to employees as of the day before the law is enacted; and it takes priority over any other available paid leave. Also, employers are limited in their ability to modify whatever paid leave programs they had in place at the time this law went into effect.
Tax Credits. HR 6201 provides a refundable tax credit (against the employer portion of Social Security taxes) equal to 100% of sick leave wages paid to employees under the bill. The credit is capped at $511 per day for wages paid to employees, and $200 per day if the employee was caring for a family member.
NOTE: This bill is not yet law. We will send out an update once the bill passes Congress and the President signs it.