Donate For Public and Patients Store Search

American Academy of Dermatology Logo
Welcome!
Advertisement
Advertisement

Emergency paid family and medical leave


Emergency paid sick leave update

The Emergency Paid Sick Leave Act immediately requires employers with fewer than 500 employees to provide 80 hours (or two weeks) of paid emergency leave — on top of any other existing paid leave program — to all employees based on urgent needs related to the coronavirus public health emergency.

The sick leave is available for immediate use by employees, regardless of length of employment. An employer may not require an employee to use existing paid leave provided by the employer before the employee uses paid leave provided under Division E (see table below) and cannot change their existing leave policy after the date of enactment to avoid compliance.

What are the requirements for paid sick leave?

The employer should immediately provide each employee two weeks of paid sick leave if the employee is unable to work (or telework) because of the following reasons related to COVID-19:

  1. The employee is subject to a federal, state, or local quarantine or isolation order;

  2. The employee has been advised by a health care provider to self-quarantine;

  3. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis;

  4. The employee is caring for an individual to which points 1 or 2 apply;

  5. The employee is caring for a child (under age 18) if the child’s school or place of care has been closed due to COVID-19 precautions; or,

  6. The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretaries of Labor and the Treasury.

Additionally, you must post this poster in a conspicuous place in your practice. If you are unable to work physically in your practice, you must email the poster to all of your staff or post this notice on an existing employee information website.

How is the leave pay calculated?

Pay is calculated based on which circumstance noted above the employee qualifies for. See table below:

Reason (see corresponding # above)Compensation

(1), (2), and (3)

Full wages not to exceed $511/day and $5,110 in the aggregate

(4), (5), and (6)

Two-thirds of wages not to exceed $200/day and $2,000 in the aggregate

Are all businesses eligible for a tax credit for the paid leave they will provide the employees

The requirement to provide the paid leave (both sick and FMLA) would apply to all public sector employers and those private sector employers with less than 500 employees; however, the tax credit eligibility would only apply only to those private sector employers with less than 500 employees. Those employers would receive a 100 percent refundable payroll tax credit on the wages required to be paid.

Is anyone exempt?

The Secretary of Labor has been given the authority to:

  • issue regulations for good cause to exempt businesses with fewer than 50 employees from the requirements if such requirements would jeopardize the viability of the businesses as an ongoing concern;

  • exclude certain health care providers and emergency responders from these requirements, including by allowing such employers to opt out.

The Department of Labor has created FAQs on requirements for sick leave.

Paid FMLA leave update

The Emergency Family and Medical Leave Expansion Act will amend the Family and Medical Leave Act (FMLA) and require employers with fewer than 500 employees to provide all employees paid leave based on urgent needs related to the coronavirus public health emergency.

Do small practices have to comply?

If you are a practice that employs fewer than 500 employees, you are mandated to comply with this act; however, the Secretary of Labor has the authority to issue regulations to exempt small businesses with fewer than 50 employees if the requirements would jeopardize the viability of the business.

Are all employees covered under this act?

An employee who has been employed for at least 30 days by the employer is eligible for the new leave entitlement which is in contrast to FMLA which requires that an employee be employed for at least 12 months and for at least 1,250 hours.

Are health care providers or emergency respondents included in this act?

The law gives the Secretary of Labor authority to issue regulations to exclude certain health care providers and emergency responders from the definition of eligible employee.

For the purposes of employees who may be exempted from paid sick leave or expanded family and medical leave by their employer under the FFCRA, a health care provider is anyone employed at any doctor’s office, hospital, health care center, clinic, post-secondary educational institution offering health care instruction, medical school, local health department or agency, nursing facility, retirement facility, nursing home, home health care provider, any facility that performs laboratory or medical testing, pharmacy, or any similar institution, employer, or entity. This includes any permanent or temporary institution, facility, location, or site where medical services are provided that are similar to such institutions.

This definition includes any individual employed by an entity that contracts with any of the above institutions, employers, or entities to provide services or to maintain the operation of the facility. This also includes anyone employed by any entity that provides medical services, produces medical products, or is otherwise involved in the making of COVID-19 related medical equipment, tests, drugs, vaccines, diagnostic vehicles, or treatments. This also includes any individual that the highest official of a state or territory, including the District of Columbia, determines is a health care provider necessary for that state’s or territory’s or the District of Columbia’s response to COVID-19.

To minimize the spread of the virus associated with COVID-19, the Department encourages employers to be judicious when using this definition to exempt health care providers from the provisions of the FFCRA.

What is the total duration of the paid leave?

The paid leave mandate under Division C requires that the employer cover 10 weeks of qualifying paid emergency FMLA to an eligible employee. The employee may choose to take the first 10 days (prior to the 10 weeks covered by the employer) as unpaid; elect to substitute with any accrued vacation, medical, personal, or sick leave provided by the employer; or (if eligible) utilize 2 weeks of the Emergency Paid Sick Leave (covered by Division E).

How is the paid leave calculated?

Paid leave must be at least two-thirds of an employee’s regular rate of pay and reflect the number of hours an employee would otherwise be normally scheduled to work. The paid leave shall not exceed $200/day and $10,000 in aggregate. Employers would receive 100% refundable payroll tax credit for the wages required to be paid by the Emergency Family and Medical Leave Expansion Act for each employee (capped at $200/day and $10,000 for the calendar year).”

How do employees know if they qualify?

Employers are required to provide notice of eligibility to employees. The Department of Labor is required to create model notification within 7 days after enactment of the bill (not yet available).

Are there any special provisions for employers with less than 25 employees?

Under the current FMLA, an employee taking FMLA leave is entitled to be restored to their position or an equivalent position with equivalent pay and benefits. However, under the new act, employers with fewer than 25 employees are not required to restore the employee to their position upon completion of emergency FMLA leave if:

  • the position does not exist dues to economic conditions caused by the public health emergency;

  • the employer makes reasonable efforts to restore the employee to an equivalent position; and

  • an equivalent position does not become available in the following year.

Overview employer paid leave requirements and tax credit provisions

(Prepared by Ways and Means Republicans)

EmployersCovered EmployersDuration of LeaveQualifying Reasons for LeaveRequired Wage ReplacementApplicability of: Division G – Tax Credits for Paid Sick and Paid Family and Medical Leave

Division E – Emergency Paid Sick Leave

Effective 15 days after enactment.

Expires 12/31/2020

Private sector employers with fewer than 500 employees.

Public sector employers with 1 or more employees.

Good cause exemption for employers with fewer than 50 employees. Applies to reason #5 only. (DOL Rule)

Employer must provide 2 weeks of paid sick leave for full-time covered employees.

Special rule for part-time employees.

1. Employee is subject to a Federal, state or local quarantine related to COVID-19.

2. Employee has been advised by a health care provider to self-quarantine.

3. Employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.

4. Employee is caring for an individual who is subject to quarantine pursuant to 1 and 2.

5. To care for a child or children whose school or care provider is unavailable due to COVID-19.

6. Employee is experiencing a similar condition as specified by HHS, DOL or Treasury.

Reasons #1-3: Employee’s regular rate of pay. Capped at $511/day and $5,110 total.

Reasons #4-6:

2/3 of employee’s regular rate of pay. Capped at $200/day and $2,000 total.

Special rule for part-time employees.

Private sector employers with fewer than 500 employees may obtain a credit for wage replacement:

Employers receive 100% payroll tax credit (refundable as needed) for required paid sick leave wages plus certain health care expenses of the employer.

Special rule for self-employed.

Division C – Emergency Family and Medical Leave

Effective 15 days after enactment.

Expires 12/31/2020

Private sector employers with fewer than 500 employees.

Good cause exemption for employers with fewer than 50 employees.

(DOL rule)

Employer must provide 10 weeks of paid family and medical leave for employees (employed for at least 30 days).

Special rule for part-time employees.

Employee is unable to work (or telework) due to a need for leave to care for a son or daughter under 18 years of age if the school or place of care has been closed, or the child care provider is unavailable, due to a public health emergency.

Not less than 2/3 of regular rate of pay based on # of hours scheduled to work. Capped at $200/day and $10,000 total.

Special rule for part-time employees.

Private sector employers with fewer than 500 employees may obtain a credit for wage replacement:

Employers receive 100% payroll tax credit (refundable as needed) for required paid family and medical leave wages plus certain health care expenses of the employer.

Special rule for self-employed.

The AAD has created a sample employee memo and sample employee leave request and notice forms (EPSL and EFMLA) (PDF downloads) that you can download and customize for your practice.


Additional COVID-19 business management resources


All content solely developed by the American Academy of Dermatology

Supported by: Public>Diseases>Corona>Sponsors

Advertisement
Advertisement