Families First Coronavirus Response Act signed by President

President Trump signed the Families First Coronavirus Response Act (H.R. 6201) into law on March 18, 2020. Some of the key elements of the Act includes free testing for the novel coronavirus (COVID-19), expanded family and medical leave, enhanced unemployment insurance, expanded food security initiatives, and increased federal Medicaid funding.

The mandatory paid leave provisions apply to employers with fewer than 500 employees and government employers, with exceptions for health care workers and first responders. Self-employed individuals would also be eligible for the new benefits. Employers required to provide paid time off would need to initially bear the costs of paying their employees, but the federal government would provide payroll tax credits to help cover the costs.

The paid leave provision applies to employees who are unable to work or telework for the following reasons:

Is subject to a federal, state, or local COVID-19 quarantine or isolation order;

Has been advised by a health care provider to self-quarantine because of COVID-19;

• Is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
• Is caring for an individual subject to or advised to quarantine or isolation; or
• Is caring for a son or daughter whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 precautions; or     
• Is experiencing substantially similar conditions as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

Generally, employers would pay employees at their regular rate of pay for emergency sick leave, capped at $511 per day ($5,110 in the aggregate) if the leave is taken for an employee’s own illness or quarantine (i.e., for the first three bullets above and two-thirds of their regular rate of pay for emergency sick leave, capped at $200 per day ($2,000 in the aggregate) if the leave is taken to care for others or due to school closures (i.e., for the last three bullets above).

The Act includes a variety of exceptions to the guidelines. A summary of the bill may be found here or to read the full version, click here. We are keeping up-to-date as new legislation and provisions are passed and are committed to keeping our clients well-informed. If you have any questions, please don’t hesitate to email us.