President signs HR 6201 – Family First Coronavirus Response Act

Paid Job-Protected Leave Under the Family and Medical Leave Act

• Employees at firms with fewer than 500 employees have the right to take up to 12 weeks of job-protected leave under the Family and Medical Leave Act (“FMLA”).
• What Changed? Ten weeks can be Paid Leave at no less than 66% of current pay, capped at $200 per day. First two weeks can be unpaid.  (FMLA leave for all other purposes remains unpaid.)
• Employee Eligibility Requirements
  • 30 days on the job
  • To adhere to quarantine requirements due to exposure or symptoms
  • To care for a family member who exhibits symptoms
  • To care for a child whose school is closed.

14 Days of Paid Sick Leave

• Employers with less than 500 employees
• Any employee, no requirement of days worked, full or part-time.
• What Changed? The first two weeks of leave may be unpaid under FMLA, but this “14 Days of Paid Sick Leave” requirement adds pay for the first 14 days at 100% of previous wages (capped at $511 per day), if:
  • To self-isolate due to diagnosis of COVID-19
  • To seek medical diagnosis if experiencing symptoms of COVID-19
• pay must be 2/3 previous wages (capped at $200 per day), if employee’s leave is:
  • To care for a family member who is experiencing symptoms or is diagnosed with COVID-19
  • To care for a child whose school has closed, or childcare provider is unavailable.
• This leave will not reduce any existing Paid Sick Leave benefit/balance previously available to the employee. In Michigan, employers face the requirements of the Paid Medical Leave Act, which requires employees to receive 1 hour of paid sick leave for every 35 hours worked, up to 40 hours per year.

As with traditional FMLA leave, it is job-protected and an employer must return the employee to the same or equivalent position upon their return.

Tax Credits and a $1 Billion Dollar Grant

• A refundable tax-credit equal to 100% of the cost of Paid FMLA leave, and the 14-day leave.
• The credit is first deductible from your Social Security Tax paid (employer portion).
• The credit is “refundable” if you exceed your total Social Security Tax payment.
• Credited Quarterly.
• $1 Billion grant to boost State Unemployment funds was also added to support workers who are laid off due to downsizing related to the COVID-19 virus.