Families First Coronavirus Response Act (FFCRA) and CA State Unemployment and Disability Benefits
Am I required to pay emergency sick leave or emergency family medical leave to my employees?
You are require to pay employees emergency sick leave or emergency family medical leave if they are unable to work or telework and the employee is:
- Diagnosed with COVID-19 and subject to a federal, state or local quarantine or isolation order related to COVID19
- Has been advised by a health care provider to self-quarantine related to COVID-19
- Is experiencing COVID-19 symptoms and is seeking a medical diagnosis
- Is caring for an individual described above
- Is caring for a child whose school or place of care is closed due to COVID-19 related reasons
Are there any exemptions?
If you have fewer than 50 employees, you may request an exemption. The Department of Labor (DOL) is set to issue regulations but none have been issued as of the date of the drafting of this FAQ. The DOL advises you to document why your business with fewer than 50 employees meets the criteria set forth by the department.
Do I have to pay for all of the emergency sick leave and emergency family medical leave?
The first two weeks (10 days) of emergency family medical leave may be unpaid. Emergency sick leave must be paid. You cannot require an employee to use PTO in lieu of sick leave.
How much do I have to pay my employees?
The rate of pay for emergency sick leave or emergency family medical leave for an individual who is directly diagnosed, quarantined or experiencing symptoms related to COVID-19 or advised by a health care provider to self-quarantine is the lesser of the employees regular rate of pay or $511/day up to a maximum of $5,110.
For an employee that is caring for a person described above or caring for a child whose school or place of care is closed for COVID-19 related reasons the rate of pay is the lesser of 2/3 of the employee’s normal rate of pay or $200/day up to $2,000 total for sick leave or $10,000 total for emergency family medical leave. The combined total is $12,000.
We are subject to a local “shelter in place” order. Do we have to pay emergency sick leave or emergency family medical leave to our workers?
Not necessarily. A shelter in place order is not the same as being subject to quarantine or self-isolation orders. However, if your employee is caring for a child whose school or place of care is closed for COVID-19 related reasons, and they are unable to work or telework, you may be required to pay emergency sick leave or emergency family medical leave.
What does “unable to work or telework” mean?
An employee is unable to work if you have work for your employee and one of the COVID-19 qualifying reasons set forth in the FFCRA prevents them from being able to perform that work, either under normal circumstances at their normal worksite or by means of telework
What if my employee can perform some functions remotely, but not all of them and is not working a full schedule?
If your employee is unable to telework their normal schedule of hours due to one of the qualifying reasons in the Emergency Paid Sick Leave Act, you and your employee may agree that they may take paid sick leave intermittently while teleworking. Similarly, if your employee is prevented from teleworking their normal schedule of hours because they need to care for their child whose school or place of care is closed or child care provider is unavailable because of COVID-19 related reasons, you and your employee may agree that they can take expanded family medical leave intermittently while teleworking. Your employee may take intermittent leave in any increment, provided that you and your employee agree. For example, if you agree on a 90-minute increment, your employee could telework from 1:00 PM to 2:30 PM, take leave from 2:30 PM to 4:00 PM, and then return to teleworking.
What relief options are available to me as an employer?
If you are required to pay emergency sick leave or emergency family medical leave you may claim a refundable tax credit on your quarterly payroll tax filling up to 100% of the amount of emergency sick leave or emergency family medical leave paid
When must I start paying benefits by?
These rules go into effect April 1, 2020 and end December 31, 2020.
I am self-employed, what about me!?
If you are self-employed, you will be entitled to an equivalent credit against self-employment tax up to a total of $5,110 of emergency sick leave and $10,00 of emergency family medical leave for a combined total of $12,000. The amount of credit is the lesser of the $511/day or $200/day limit, depending on which reason you qualify for, or your average daily self-employment income which is your neat earnings from self-employment during the year divided by 260.
This is all so confusing… what if I mess something up?
First, contact your Wheeler Accountants advisor to discuss your options. We will walk you through your options, though keep in mind some of the items in the FFCRA relate to Employment Law and you may need to consult an employment attorney as well. Additionally the DOL has a “non enforcement period” for 30 days for good faith efforts made to comply with the law.
Where can I find more information?
The DOL has an FAQ posted on their website with lots of useful information.