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Families First Coronavirus Response Act - Nonprofit HR

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“Families First Coronavirus Response Act”

Inside this Publication:
-The Big Picture
-Emergency Paid Family Leave
-Emergency Paid Sick Leave
-Changes to Group Health Plan Coverage Related to COVID-19 Testing

Note: The two emergency leave programs under this Act are essentially an extension of FMLA.
Nonprofits are not exempt from the Families First Coronavirus Act.

Published in: Government & Nonprofit
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Families First Coronavirus Response Act - Nonprofit HR

  1. 1. INSIDE: The Big Picture Emergency Paid Family Leave Emergency Paid Sick Leave Changes to Group Health Plan Coverage Related to COVID-19 Testing "FAMILIES FIRST CORONAVIRUS RESPONSE ACT" Visit us online: Nonprofithr.com/covid19 Email us: covid19@nonprofithr.com Call us: 202.785.20 60
  2. 2. Applies to private sector, including nonprofits & governmental entities employing fewer than 500 employees (employers with fewer than 50 employees may later be deemed exempt by the Secretary of Labor through subsequent regulations).      Requires employers to provide emergency paid family and sick leaves. Requires all group health plans to cover COVID-19 testing without employee cost-sharing. The Big Picture Visit us online: Nonprofithr.com/covid19 Email us: covid19@nonprofithr.com Call us: 202.785.2060 Employers will be provided refundable tax credits against their employer portion of Social Security taxes for 100% of the qualified sick leave and family leave wages paid in accordance with the Act. Link to review this legislation as passed by Congress and signed into law by the President:  https://www.congress.gov/bill/116th -congress/house-bill/6201/text
  3. 3. Employee must have been employed at least 30 calendar days to be eligible. Provides job protection and up to 12 weeks of paid leave for any employee with a qualifying need related to a public health emergency (a COVID-19 related emergency declared by a Federal, State or Local authority). For purposes of this leave type, a qualifying need is the inability of any employee to work or telework due to a need to care for a child under age 18 if the child’s school or place of childcare is closed or unavailable as a result of the COVID-19 health emergency. It is permissible for the first 10 days of this leave to be unpaid.  Employees should be allowed to use any existing paid vacation, sick and/or personal leave already granted or accumulated under any such plans your organization may already have in place. Employer, however, cannot require   Key Provisions       Emergency Paid Family Leave   (goes into effect April 2nd and runs through 12/31/2020) Leave will be paid at 2/3 of the employee’s regular pay rate for the hours the employee would have otherwise normally been scheduled to work. This paid leave will not be subject to the usual 6.2% Social Security payroll tax typically paid by employers on employee wages. For employees on variable schedules, the emergency legislation provides a calculation method for determining such employees’ leave payments. Employers of first responders or healthcare providers may be exempted from providing this leave to its employees. Generally, upon completion of this family leave, the employee must be restored to his/her position.  Employers with less than 25 employees may qualify for exemption from this requirement. the employee to use said existing leave during the first 10 days. “Families First Coronavirus Response Act” nonprofithr.com/covid19
  4. 4. There is no length of service requirement to qualify for this paid sick leave.       For full-time employees, up to 80 hours of emergency paid sick leave if any employee is unable to work/telework due to one of the qualifying needs below (note – part-time employees would receive paid sick leave based on the number of hours the employees work, on average, over a two-week period): Employee is subject to a government quarantine order related to COVID-19 Employee is advised to self-quarantine related to COVID-19. Employee is experiencing COVID-19 related symptoms and is seeking medical diagnosis/care. Key Provisions     1. 2. 3. Visit us online: Nonprofithr.com/covid19 Email us: covid19@nonprofithr.com Call us: 202.785.2060 Emergency Paid Sick Leave   (goes into effect April 2nd and runs through 12/31/2020) 4. Employee is caring for an individual subject to or advised to quarantine as a result of COVID-19. 5. Employee is caring for a child whose school or care provider is closed/unavailable related to COVID-19. 6. Employee is experiencing any other substantially similar condition specified by Secretary of HHS in connection with the Secretaries of Labor and Treasury.
  5. 5. For reasons 1-3 above, sick leave is to be paid at the higher of the employee’s regular rate of pay or the minimum wage.  Sick leave taken for these reasons is capped at $511/day ($5,110 for total duration of leave). For reasons 4-6 above, sick leave is to be paid at 2/3 of the employee’s regular rate of pay (daily rate cannot drop below minimum wage).  Sick leave taken for these reasons is capped at $200/day ($2,000 for total duration of leave). This paid leave will not be subject to the usual 6.2% Social Security payroll tax typically paid by employers on employee wages. Emergency Paid Sick Leave (goes into effect April 2nd and runs through 12/31/2020) The emergency paid sick leave ends with the employee’s next scheduled work shift following the end of the qualifying need. The emergency paid sick leave is in addition to any already existing paid sick leave that the employer is already providing.  Employer cannot force an employee to take other paid leave prior to using this emergency paid sick leave.       Employers of first responders or healthcare providers may be exempted from providing this leave to its employees. “Families First Coronavirus Response Act” nonprofithr.com/covid19
  6. 6. Group health plans must cover the cost of COVID-19 testing without requiring employee cost sharing, prior authorization, or any other medical management restrictions. This includes coverage for: Diagnostic testing products    Items and services provided to an individual during health care provider office visits (including in-person and telehealth visits) Urgent care center visits Emergency room visits that result in an order for the test, the administration of the test, or the evaluation of the individual to determine whether the test is needed Visit us online: Nonprofithr.com/covid19 Email us: covid19@nonprofithr.com Call us: 202.785.2060 Changes to Group Health Plan Coverage Related to COVID-19 Testing   (goes into effect April 2nd and runs through 12/31/2020) Requirement applies to all self- insured and fully insured group health plans, including grandfathered health plans. It does not appear to apply to plans that are retiree-only plans or excepted benefit plans. The Departments of Health and Human Services, Labor, and Treasury are authorized to develop sub-regulatory guidance to implement these requirements.
  7. 7. "FAMILIES FIRST CORONAVIRUS RESPONSE ACT" Total Rewards is not just about financials, it is also about creating programs that engage your staff, connect them to your organization, and allow them to grow their career while also managing their lives. Visit us online: Nonprofithr.com/covid19 Email us: covid19@nonprofithr.com Call us: 202.785.2060

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