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Are you confused about your obligations under the new Emergency Paid Leave Act?

Free Webinar: COVID-19 Question

Free Webinar: Counsel With Us About Your Questions And Obligations for Employers in Navigating the New Emergency Paid Leave Act.

When: Tuesday, March 24, 2020 (12:00 p.m. to 1:00 p.m. mountain standard time)

Online Registration: Click Here

On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act, aimed to provide initial relief to American workers of covered employers in the wake of the coronavirus pandemic.  Employers are now required to provide emergency paid leave as of April 2, 2020.  This new law has sent a rush of panic and some confusion to business owners of small and large businesses alike!  Tomorrow myself, Dana Ball along with another employment attorney, Spencer Phillips, will counsel with you about your paid leave obligations.  Hopefully, we can provide some practical insight for you to navigate the requirements of this law.

Here’s an update of what’s transpired with this emergency paid leave law:

  • The new law covers private employers with less than 500 employees, so yes that also means you businesses with less than 50 employees.
  • Employers are required to pay employees up to 80 hours of paid sick leave and emergency FMLA leave when employees’ children’s schools are closed or child care providers are unavailable.
  • Employers will receive 100% reimbursement for paid leave such as:
    • Health insurance costs are also included in the credit.
    • Employers face no payroll tax liability.
    • Self-employed individuals can receive an equivalent credit.
  • Reimbursement to employers is promised to be quick and easy to obtain.  An immediate dollar-for-dollar tax offset against payroll taxes (not just social security taxes) will be provided.  Plus, if those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form.
  • On Friday, March 20, 2020, the Department of Labor (DOL) issued some relief to businesses with less than 50 employees where you can apply for an exemption from the requirements to provide emergency FMLA to care for a child whose school is closed or child care is unavailable in cases where the viability of the business is threatened.
  • The DOL promises to not come down hard on employers for the first 30 days of the act if the employer can show good faith compliance efforts.

For more specifics on what the Act provides, please read our blog post from Friday, March 20, 2020.

As an employer, we understand that you have questions and that your situation may be different from the business next door.  Join us tomorrow and let’s see if we can provide you with some direction.

Online Registration: Click Here


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