UPDATE: DOL Issues Families First Coronavirus Response Act Guidance on Employer Coverage and Obligations to Provide Paid Sick and Family and Medical Leave

Jason E. Reisman and Taylor C. Morosco

Yesterday evening, the U.S. Department of Labor (“DOL”) published its first round of guidance on the Families First Coronavirus Response Act (“FFCRA”), which takes effect on April 1, 2020.[1]

The guidance—provided in a Fact Sheet for Employees, a Fact Sheet for Employers, and Questions and Answers—answered some of the high-level questions employers have been asking. This update summarizes several of those important answers. However, more guidance is needed and expected in the coming days.

What is the FFCRA?

COVID-19 legislation that contains two key paid leave acts—the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act.

In a nutshell, the Emergency Paid Sick Leave Act entitles employees to paid sick leave when they cannot work or telework due certain COVID-19-related circumstances affecting the employee or someone for whom the employee is caring.[2] The Emergency Family and Medical Leave Expansion Act provides paid leave for employees caring for a child due to school or childcare provider closures related to COVID-19. For an overview of both Acts, check out Blank Rome’s Update.

When is a business covered by FFCRA?

When a business employs fewer than 500 employees within the United States. Continue reading “UPDATE: DOL Issues Families First Coronavirus Response Act Guidance on Employer Coverage and Obligations to Provide Paid Sick and Family and Medical Leave”

New York Passes COVID-19 Relief for Affected Employees

Anthony A. Mingione

On Wednesday, Governor Cuomo signed into law a bill providing paid sick leave and job protections for employees in New York who are unable to work due to coronavirus COVID-19. The new law prohibits employers from terminating or penalizing employees who are absent from work while the government is recommending or mandating that people stay home to slow the spread of COVID-19.

The specifics of the leave available to employees will vary depending on the size and net income of the employer, although regardless of employer size, all employees subject to a mandatory or precautionary order of quarantine or isolation due to COVID-19 will be entitled to job protection during their absences.

      • Businesses with at least 100 employees must provide at least 14 days of paid sick leave during any mandatory or precautionary order of COVID-19 quarantine or isolation.
      • Businesses with between 11 and 99 employees (or with 10 or fewer employees but more than one million dollars in net income) must provide five days of paid sick leave. Once that is exhausted, those employers must provide their workers with access to short-term disability benefits and paid family leave for the period of quarantine/isolation.
      • Finally, employers with 10 or fewer employees and less than one million dollars in net income are not obligated to provide paid leave but must give their workers access to short-term disability benefits and paid family leave for the period of quarantine/isolation.

Continue reading “New York Passes COVID-19 Relief for Affected Employees”

Coronavirus Update: Senate Passes Virus Relief Bill, Plans for Even Bigger Stimulus

Jason E. Reisman and Andrew I. Herman

The Senate cleared the second major bill responding to the coronavirus pandemic, with lawmakers rushing to follow up with an additional economic rescue package that President Donald Trump’s administration estimates will cost $1.3 trillion. The 90-8 vote Wednesday, following House passage on Saturday, sends Trump a measure providing paid sick leave, food assistance for vulnerable populations and financial help for coronavirus testing. As the Senate voted, Republican and Democratic leaders were already working on the next proposal.

For the latest updates, please visit Blank Rome’s Coronavirus (“COVID-19”) Task Force page. 

Coronavirus Update: House Passes Bill for Paid Leave and Other Emergency Relief

Jason E. Reisman and Andrew I. Herman

On March 14, 2020, the U.S. House of Representatives passed legislation in response to the increasing disruption that coronavirus (“COVID-19”) is having on businesses and daily life. The Emergency Families First Coronavirus Response Act (H.R. 6201) includes several measures to address the significant impact of COVID-19 on employment for American workers and their families, including provisions for emergency paid leave and sick time, as well as funds and support for state unemployment compensation programs. To protect against the creation of “permanent” paid leave benefits and limit it to addressing the COVID-19 impact, this bill sunsets at the end of 2020.

On March 16, 2020, the House passed a “technical corrections” bill by unanimous consent, which included changes intended to address concerns that the legislation’s provisions for emergency paid leave and sick time would be devastating to small and midsize businesses.  

THE EMERGENCY FAMILY AND MEDICAL LEAVE ACT

The bill amends the Family and Medical Leave Act (“FMLA”) to provide employees of employers with fewer than 500 employees with the ability to take up to 12 weeks of job-protected leave on a partially paid basis under the FMLA if the employee is unable to work (or telework) due to a need to care for a child due to the closure of a school or place of care, or a childcare provider is unavailable, because of COVID-19 public health emergency.

Who is eligible for COVID-19 leave?

Any employee who has been employed for at least 30 calendar days by an employer with fewer than 500 employees. There is no minimum hours threshold like the normal FMLA eligibility requirement that an employee have worked at least 1,250 hours over the preceding 12 months.

How much must an employee be paid for COVID-19 leave?

The first 10 days of COVID-19 leave is unpaid. An employee can choose to use vacation or other paid time off during this period. A provision restricting employers from requiring employees to do so was removed in the bill’s “technical corrections.”

Employers must pay two-thirds of an employee’s regular rate of pay after the first 10 days of COVID-19 leave, but such pay is not to exceed $200 per day or $10,000 in the aggregate.

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Update on New Jersey Paid Sick Leave Act

Mark Blondman

In an earlier post, we provided a preview of the New Jersey Paid Sick Leave Act. The Act goes into effect on October 29, 2018. Last week, the Department of Labor and Workplace Development, the state agency responsible for interpreting the Act, published a “Notice of Employee Rights” under the Act and a copy of that Notice/Poster is available here. The Notice must be posted by employers in conspicuous locations in every worksite in New Jersey and must be distributed to all New Jersey employees by November 29 and at the time of hiring for all new employees hired after October 29.

The Act imposes significant obligations on employers in New Jersey. You can contact a member of Blank Rome’s labor & employment practice group if you have any questions about what needs to be in your policies.

New Jersey Jumps on the Paid Sick Leave Bandwagon

Asima J. Ahmad

Attention New Jersey employers: It looks like the Garden State is next in line to require employers to provide paid sick leave to employees. The New Jersey Paid Sick Leave Act has now been passed by both the state assembly and senate, and Governor Phil Murphy is expected to sign the bill into law.

Similar to the paid sick leave laws in other states, New Jersey will mandate that employees accrue one hour of paid sick leave for every 30 hours worked, up to a maximum of 40 hours. In the alternative, employers can frontload 40 hours of paid sick time on the first day of each benefit year. This can be done through an existing paid time off (“PTO”) policy, so long as the PTO days can be used for any of the reasons permitted under the Act, and are accrued at an equal or greater rate than what the Act requires. The Act states that employers are not required to permit employees to carry over more than 40 hours of paid sick leave from one benefit year to the next, but it appears that carryover is otherwise required. Additionally, employers are not obligated to pay employees for any accrued but unused time upon their separation from the company. Continue reading “New Jersey Jumps on the Paid Sick Leave Bandwagon”