The Families First Coronavirus Response Act: What It Means For Your Small Business

By Kathryn Olon

During these turbulent times, many people are left wondering what the future will bring.  This is especially true for small businesses, who are suffering from diminished income due to COVID-19 restrictions. For many, government mandates and legislature like the CARES Act have alleviated some concern. However, most stimuli focus on the individual employee rather than small businesses.  In particular, the Families First Coronavirus Response Act (FFCRA). 

What is the FFCRA?

The FFCRA Act is an Act passed by the Wage and Hour Division of the U.S. Department of Labor in response to COVID-19.  The provisions of the FFCRA went into effect on April 1, and apply to leave taken between April 1, 2020, and December 31, 2020.

Who is a Covered Employer?

The FFCRA applies to private employers that employ less than 500 employees. Federal employers are covered by the Act only if its employees are not covered by Title II of the Family and Medical Leave Act. Employers are prohibited from terminating, disciplining, or discriminating against employees who take leave under the FFCRA. There is a small business exemption, however, for private employers with less than 50 employees. The exemption is detailed in a later blog.

What does the FFCRA require?

Specifically, covered employers are required to provide two weeks (up to 80 hours) of paid sick leave at an employee’s regular rate of pay when the employee is unable to work for COVID-19 related reasons.  This includes if the employee is quarantined pursuant to a Federal or local government order, the advice of their healthcare provider, or if the employee is experiencing COVID-19 systems and has not yet received a diagnosis.  

Further, covered employers must provide two weeks (up to 80 hours) of paid sick leave at two-thirds of an employee’s regular rate of pay if the employee is unable to work because he or she has to care for someone who is subject to quarantine pursuant to a Federal or local government order or advice of their health care provider. Employers must also provide these two weeks of paid leave at two-thirds pay when an employee has to care for a child whose school or childcare provider is closed or otherwise unavailable for COVID-19 related reasons.

It is important for employees and employers alike to note that this two-week period is for a total of 80 hours of paid sick leave.  This means that an employee who has already taken sick leave because of a personal quarantine order may not take an additional 80 hours to care for their minor son or daughter who has COVID-19.

If an employee has been employed for more than 30 days, employers are required to provide a maximum of 10 additional weeks of paid expanded FMLA leave when the employee cannot work because he or she must care for a child whose school or childcare provider is closed or unavailable due to COVID-19 related reasons.

When Does the FFCRA Apply?

An employer is required to provide an employee with paid sick leave if the employee cannot work or telework for the following six specified reasons:

1. The employee is required to quarantine or isolate due to a Federal, State, or local order due to COVID-19;
2. The employee’s health care provider advised the employee to self-quarantine because the employee is experiencing coronavirus symptoms;
3. The employee is experiencing COVID-19 symptoms and is waiting for or seeking an official diagnosis;
4. The employee is caring for an individual who is required to quarantine or isolate due to a Federal, State, or local order related to COVID-19;
5. The employee is caring for a child less than 18 years of age whose school or childcare provider is closed or otherwise unavailable because of COVID-19;
6. The employee is experiencing any other substantially-similar condition, as defined by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

For reasons (1), (2), (3), (4), and (6), an employer is required to provide their full-time employee with up to 80 hours of leave.  For part-time employees, employers must provide the number of hours of leave that the employee works over a two-week period.

For reason (5), an employer must provide their employee with up to 12 weeks of leave at 40 hours a week.  A part-time employee is eligible for the number of hours the employee would be expected to work over that same 12-week period.