A private employer with fewer than 500 employees is subject to the Families First Coronavirus Response Act (Act). As questions arise regarding the employer’s requirements under the Act, please remember that the Act gives up to 80 hours of paid sick leave or 10 weeks of expanded leave for certain COVID-19 situations. The U.S. Department of Labor, Wage and Hour Division, provides an explanation of the Act (HERE).
An employee qualifies for the Act’s paid sick time if the employee is not able to work or telework because the employee is:
(1.) Subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
(2.) Advised by a health care provider to self-quarantine related to COVID-19;
(3.) Experiencing COVID-19 symptoms and is seeking a medical diagnosis;
(4.) Caring for an individual subject to an order described in 1. or a self-quarantine advisory in 2.;
(5.) Caring for a child whose school or place of care is closed, or child care is unavailable for reasons related to COVID-19; or,
(6.) Experiencing any other substantially similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.
An employee receives paid sick leave or expanded leave for each applicable hour, the greater of:
- Regular rate of pay;
- Federal minimum wage; or,
- Local minimum wage.
Under the FFCRA, the regular rate of pay used to calculate paid leave is the average of the employee’s regular rate over a period of up to 6 months prior to the date on which leave is taken. If an employee has not worked for their current employer for 6 months, the regular rate used to calculate paid leave is the average regular rate of pay for each week worked for the current employer.
- If an employee is paid with commissions, these wages are to be incorporated into the above calculation.
- An employer can also compute this amount for each employee by adding all compensation that is a part of the regular rate over the above period and divide that same by all hours worked in the same period.
(See Q’s and A’s #7. and #8. FFCRA Questions and Answers)
A covered employer qualifies for dollar-for-dollar reimbursement through tax credits for all qualifying wages paid under the FFCRA. For more information regarding the tax credits, please see the Department of Treasury’s website(HERE).
By April 1st, the FFCRA Poster (HERE) should be posted in a conspicuous place where it is easily visible to all employees at the dealership. An employer may also email or direct mail the notice to employees.
See TADA email: DOL Issues Additional Guidance & Required (Here)