HOW WILL THE NEW FMLA LAWS AFFECT YOUR BUSINESS?

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HOW WILL THE NEW FMLA LAWS AFFECT YOUR BUSINESS?

With the continuous spread of Coronavirus (COVID-19) and its impact on public health, business owners are urged to stay up to date on the amended employment laws.  Whether employees are calling out due to illness or childcare complications, it is vital for employers to know how these new laws affect their business and their employees. 
For those employers with less than 500 employees, H.R. 6201 Families First Coronavirus Response Act[1] has expanded the Family and Medical Leave Act (FMLA).  Under Division C – Emergency Family and Medical Leave Expansion Act, there now exists emergency paid leave benefits as it relates to COVID-19.  This new enactment allows an employee (employed for at least 30 calendar days by employer) to take emergency leave from work for reasons related to COVID-19
The emergency paid leave under §102(a)(1)(F), may consist of unpaid leave for the first 10 days.  Beyond that, the employer provides paid leave to be calculated as, two-thirds of the individual’s regular rate of pay.  Such paid leave shall not exceed $200.00 per day and $10,000.00 per employee total. 
Under Division E – Emergency Paid Sick Leave Act, covers emergency paid sick leave. Employees are entitled to 80 hours (full-time employee), or the number of hours equals to that of which the employee works on average, over a 2-week period (part-time employee).  This paid sick leave covers days when an employee or an individual being cared for by the employee is subject to quarantine or experiencing symptoms related to COVID-19, or the employee is caring for a child whose school has closed due to COVID-19 precautions.
In addition, there are a couple of important notes to consider. First, Division G of the Act provides employers tax credits for paid sick and paid family and medical leave.  Secondly, there is an exception to the bill.  Small businesses with fewer than 50 employees are exempt from some parts of the requirements of the bill if it “would jeopardize the viability of the business as a going concern”.  Additionally, these amendments expire on December 31, 2020.
With these amendments in place, employers are advised to inform their employees of these new changes and, to reach out to counsel with any concerns on their rights and obligations under these new laws.




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