Families First Coronavirus Response Act (FFCRA)

The Department of Labor's Wage and Hour Division will monitor the Families First Coronavirus Response Act (FFCRA). The Act takes effect on April 1, 2020 and runs until the end of the year. The Act ensures that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus. It also provides reimbursement for eligible businesses to support compliance.

FFCRA provides American businesses with fewer than 500 employees with funds needed to cover paid leave for an employee's own health needs or to care for family members related to COVID-19. Private companies will then be entitled to fully refundable tax credits for both paid sick leave and paid Family and Medical Leave Act (FMLA).

Eligible employees must be employed for more than 30 days, and companies with fewer than 50 employees should check the Department FFCRA regulations to see if they qualify for an exemption. Federal employees are covered by Title II of the Family and Medical Leave Act under the paid sick leave provision. 

Follow this link for information about Unemployment and Workers' Compensation for COVID-19 and other resources.

Qualifying Paid Leave

• Employees will receive 100% of their rate of pay up to 80 hours if they are subject to Federal, State, or local quarantine; are advised by a health care provider to self-quarantine; or are experiencing symptoms of COVID-19.  Part-time employees should receive their two-week equivalent rate of pay.
• Employees will receive two-thirds of their regular rate of pay up to 80 hours, to care for a quarantined individual or a child (under 18 years of age) whose school or care provider is closed related to COVID-19.
• Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee's regular rate of pay where an employee is unable to work due to a need to care for a child whose school or care provider is unavailable for reasons related to COVID-19.

The Secretary of Labor is required to issue more guidelines by April 1 to help employers formulate leave benefits and understand exemptions. The following resources provide greater detail about the Act as it is currently written and how it may apply to your business.

Sources

Department of Labor (2020) COVID-19 and the American Workplace

Department of Labor (2020) Families First Coronavirus Response Act: Questions and Answers

Department of Labor (2020) Poster - Employee Rights: Paid sick leave and expanded family and medical leave under the FFCRA

US Chamber of Commerce (2020); Families First Coronavirus Response Act: What Businesses Need to Know.