As you may be aware, the federal government passed a bill in response to the COVID-19 pandemic. The bill is aimed at providing support for employees who may be unable to work during this time and provides a means for employers to continue to pay them. The Families First Coronavirus Response Act (the “Act”) was passed into law on March 18, 2020. Employers should note that the DOL announced in Guidance issued on March 24, 2020 that the Act is effective April 1, 2020. Note this is a change from the previously expected effective date of April 2, 2020.The Act is generally applicable to private-sector employers with 499 or fewer employees and covered public entities of any size.
The Act includes the following provisions:
- Emergency Paid Sick Leave Act – requiring employers with less than 500 employees to provide 80 hours of Paid Sick Time.
- Emergency Family and Medical Leave Expansion Act – expanding the Family Medical Leave Act for employees and requiring a portion of pay during the remaining period of the leave after the first ten days of unpaid leave.
- Tax Credits for Paid Sick and Paid Family and Medical Leave – provides employers tax credits to cover the liabilities of the two prior acts listed.
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