Client Bulletin
COVID-19 News and Resources
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COVID 19 – Information Relevant to Your Business
We know this is a highly unsettled and uncertain time. We are all grasping for clarity and comfort as we self-quarantine and check in (virtually) on loved ones and colleagues. Know that our remote-first team is fully operational and here to support our clients in whatever way we can. We will be regularly compiling relevant information and sending out in this bulletin series to keep you apprised and help ease some of the anxiety. Feel free to send us your questions and we will assemble responses into an FAQ. Let us be a resource to summarize the rapidly changing information into useful guidance.
Families First Coronavirus Response Act was passed by the House but, as at the time of drafting this email, is yet to be signed into law. It affects sick leave, family leave, and unemployment insurance in times of emergency. In short, during a Public Health Emergency (such as COVID 19), employers are required to provide employees paid sick leave and paid family and medical leave, up to certain prescribed limits on compensation and time. This is not final; it only serves as a summary of what may become law. We will continue to monitor the legislative process and provide an update once finalized.
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Emergency Paid Sick Leave Act |
Emergency Family and Medical Leave |
| Worker Eligibility |
Full-time and part-time employees, regardless of time worked for employer |
Employee who has been employed for at least 30 calendar days by the employer |
| Applicable Employers |
Private entity employers with fewer than 500 employees (includes self-employed individuals) |
Employers with fewer than 500 employees |
| Benefit to Employees |
- Full-time salaried: 80 hours of paid sick leave
- Part-time/hourly: days off equal to # of hours employee works on average over 2-week period.
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Total of 12 workweeks in 12-month period paid leave. First ten days are unpaid. |
| Uses of Leave |
Employee is unable to work due to:
- Federal, State, or local quarantine/isolation orders related to COVID 19;
- advice from health care provider to self-quarantine due to concerns related to COVID 19;
- experiencing symptoms of COVID 19 and seeking diagnosis;
- caring for someone subject to order (a), or experiencing symptoms (b);
- caring for child at home since school is closed or child care provider is unavailable due to COVID 19 precautions;
- any other substantially similar conditions.
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Employee entitled to 12 workweeks during any 12-month period for one or more of the following:
- birth of and care for child of the employee
- placement of child with employee for adoption
- to care for spouse, child, parent of the employee, if such family member has a serious health condition.
- a serious health condition that makes employee unable to work
- qualifying exigency arising out of the fact that family member is on covered active duty in Armed Forces.
- qualifying need due to public health emergency (COVID 19), making employee unable to work or telework due to need to care for child under 18 if school or place of care has been closed, or child care provider is unavailable, due to a public health emergency.
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| Calculation of Payment |
Calculation:
- For Uses of Leave (a), (b), and (c): Required Compensation multiplied by # of hours employee would normally be scheduled to work
- For (d), (e), and (f): Two-thirds of Required Compensation multiplied by # of hours employee would normally be scheduled to work**
“Required Compensation” is the greater of –
- Regular rate of pay of employee
- Minimum wage under Fair Labor Standards Act or
- Minimum wage rate for employee in applicable State or locality.
Limits: Maximum Paid Sick Time
- For Uses of Leave (a), (b), and (c): $511 per day and $5,110 in aggregate
- For (d), (e), and (f): $200 per day and $2,000 in aggregate
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Calculation:
Two-thirds of employee’s regular rate of pay at the number of hours employee would otherwise normally be scheduled to work**
Limits: Maximum Paid Family Leave
$200 per day, $10,000 in aggregate.
**Varying schedule calculation available. |
| Other Relevant Provisions |
- Paid sick time does not carry over from 1 year to the next
- Employer may not require employee to search for replacement to cover hours when using paid sick time.
- Employer may not require employee to use other paid leave provided by employer before employee uses paid sick time
- Discrimination against employee for using paid sick time is prohibited.
- Secretary of Labor will issue calculation guidelines.
- Employer must post notice to employees of this paid sick time. Secretary of Labor will make model notice available.
- Secretary of Labor may issue regulations for good cause to exempt small businesses with fewer than 50 employees from the requirements of section (e) above (childcare) when imposition of such requirements would jeopardize the viability of business.
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- Employee may substitute accrued vacation, personal, medical, or sick leave during first ten unpaid days.
- Employees entitled, upon return from leave, to be restored to the position of employment held when leave commenced; or to be restored to equivalent position with equivalent benefits, pay, and other benefits. However, employer with fewer than 25 employees need not restore employee to position if position does not exist due to economic conditions or other changes in operating conditions that affect employment and are caused by a public health emergency during leave period. Employer must prove reasonable efforts to restore employee to equivalent position.
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Emergency Unemployment Insurance
The Act provides $1 billion in emergency unemployment insurance (UI) relief to the states.
General Business Assistance
Force Majeure and Breach of Contract
Force majeure (French for ‘superior force’) allows for excuse or delay in performance in the event of circumstances beyond the control of the parties. This may affect your business in the following ways: you may be able to delay or stop performing any services or providing products that you are contracted to provide due to COVID 19. On the other hand, service- and product providers may inform you that they can no longer render services or provide products to your business due to the pandemic. Below some information on the topic.
- Force Majeure and COVID 19
- Considerations about COVID 19 triggering Force Majeure clauses
- Force Majeure clauses under New York and Delaware Law
The application of ‘force majeure’ depends on how your contract is drafted. Please get in touch if you have any questions about your current contracts.
If you have any questions or want to schedule a consultation to discuss how COVID 19 or any of the relief efforts may affect your business, please contact Francisca at francisca@jrwiener.com or Jason at jason@jrwiener.com.
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