On Saturday, March 28th the Department of Labor releases a third set of FAQ's on the new Paid Sick Leave and Extended FMLA requirements for small businesses. This legislation also includes payroll tax credits to cover the cost of providing these benefits to employees.
The law goes into effect on April 1st.
These benefits are specifically targeted to help two groups of employees:
Employees that are unable to work based on a positive case of COVID 19 or those that are pending test results
Employees that are at home, and based on school closures, need to care for their children
Employees that are caring for themselves based on a positive or pending test result are eligible to receive paid sick leave equaling 100% of their pay for 2 weeks.
Those employees caring for a minor child that is unable to attend school are eligible for 2 weeks of sick leave paid at 67% of their regular pay. Following the 2 weeks of sick leave, these same employees are eligible for an additional 10 weeks of extended FMLA paid at 67% of their regular pay.
The Wage and Hour Division of the DOL has also recently introduced a new poster requirement for employers that provides notice to to employees regarding eligibility this paid leave time.
HCP is following developments with both this legislation (FFCRA) as well as the CARES Act. We will be adding additional articles as more information becomes available in the coming weeks.
HCP provides the information in this blog for general guidance only. The content does not constitute legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other advisers. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied.