March 27, 2020 0 comment

Families First Coronavirus Response Act Part 2

This video is part 2 in a 2 part series discussing the Families First Coronavirus Response Act. In the first video we discussed the Emergency Paid Sick Leave Act and now we’re going to discuss the Emergency Family and Medical Leave Act.

These acts do dovetail, you’ll see how that works in just a second. Let me tell you what this act requires. It requires that employers pay their employees if their employees are out taking care of children who are out of school because school’s been canceled or maybe who don’t have daycare because day care’s not available. So if an employee is at home doing that they might fall under the Emergency Family and Medical Leave Expansion Act.

Now here’s the thing, this act does not cover the first 10 days that an employee is out and if you watched the last video you’ll notice that the Emergency Paid Sick Leave Act does cover employees for 10 days when taking care of children who are home because of the coronavirus. So this is really where they dovetail, right? For the first 10 days an employee is out taking care of children they’re covered under the Emergency Paid Sick Leave Act, for the 10 weeks after that they’re covered under the Emergency Family and Medical Expansion Leave Act, but the amounts that the employee is paid, for the first 10 days under the sick leave act and for the next 10 weeks under the Family and Medical Leave Act, it may differ.

Under the Family and Medical Leave Expansion Act the employee is entitled to 2/3 of their salary or wage up to $200 per day for 10 weeks. That gives, by the way between these two acts, it gives an employee 12 weeks to care for children so that’s pretty generous, and again the federal government is bankrolling this. They are paying the direct costs of this, so you will get refunds as an employer. You’ll get refunds for this money that you’re laying out.

There will be expediated refund processes coming, we do not know them yet. This act is effective April 1st, that’s next week and by April 1st I would imagine that we will have details on this expediated refund process which will hopefully prevent you from having to lay out these expenses for months. You’ll be able to recover those costs quicker. If that is still a difficulty for some businesses right now, laying out any amount of cash for any length of time is maybe impossible or very, very difficult if that is there are other options. Right now in congress, actually congress has already passed the cares act today the 27th of March 2020, that act has a provision to allow small businesses to get a low interest loan that can even be forgiven if certain conditions are met. That kind of a loan could give you as a small business the liquidity you need to make these payments and to survive until you can get of course the refund for the sick leave payments that you’re making and just like the Emergency Paid Sick Leave Act, not only will the federal government reimburse you for the direct cost of the amount that you paid your employees in sick leave, the federal government will also reimburse the health plan costs for that employee for the time they’re out. Not a bad deal. 

I hope that’s helpful to you. Stay tuned for more information as it rolls out specifically these expediated refund processes that we will see coming and for many other developments. For instance, I’ll give a little teaser. Self-employed people qualify for the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Act. I’m not going to give you any details right now. You can call me and we can discuss it and I don’t know that we have all of the details, but they do qualify so there’s some benefit there even if you’re self employed and do not have employees or have an employer.