COVID-19: What Employers Need to KNow abou the New Paid Time Off Requirements

We are all reeling with new ways of working, public closures and social distancing. Even though you may feel like you are focused on Coronavirus 24/7, Roo wanted to make sure you are aware of new required paid time off requirements related to COVID-19 that were signed into law March 18th.  These new time off requirements are effective April 2, 2020. We will also briefly address filing for unemployment.
 
1. Emergency Paid Sick Leave

• Which employers does this apply to?  Employers with 500 or less employees  
• Who is eligible?  All employees, regardless of length of service

• How much time is available?
  • 80 hours for full time staff at regular pay rate
  • Prorated time off for part-time staff at regular pay rate. 

• What can it be used for?
  • To seek diagnosis or treatment for COVID-19
  • If you are quarantined due to COVID-19
  • To care for an immediate family member with COVID-19
  • To care for a child due to school or daycare closure
  • To comply with a recommended order from a public official or healthcare provider

• How is it paid for?
  • Employers will initially foot the bill for this expense
  • Employers will be able to claim a tax credit

• Other items of note
  • Emergency Sick Time is in addition to, not a replacement for, existing sick time or PTO banks.  Employers may not deduct from existing sick time or PTO banks before using Emergency Paid Sick Time
  • If you choose to grant emergency sick time before the April 2, 2020 effective date, each employee will still get an 80-hour allotment April 2nd.
  • Emergency paid seek leave is set to expire 12/31/2020
  • Emergency sick leave may not be carried over to a new year
  • “Soon” there will be a required workplace poster.  Roo will forward when it becomes available
  • Employers with 25 or fewer employees may request exemption if providing the leave would jeopardize the viability of the business.  Roo does not yet have details about how to apply for this exemption

 2. Emergency Family and Medical Leave Expansion Act (EFMLEA)
 
The FMLA has temporarily been expanded to include “public health emergency leave”, specifically related to COVID-19. 
 

“Normally”, FMLA  applies only to employers with 50 or more employees within a 75-mile radius.  The Emergency Family and Medical Leave Expansion Act (EFMLEA) applies to all employers with 500 employees or less for COVID-19 related absences. It is our understanding that “regular” FMLA still only applies to organizations with 50 + employees in a 75-mile radius.  If our understanding changes, we will let you know.

• Which employers does this apply to?  Employers with 500 or less employees

• Who is eligible? Employees with 30 days of service.  There is not a “minimum hours” requirement.

• How much time is available?
  • 12 weeks of emergency leave related to COVID-19
  • Weeks 1 -2 are unpaid time and employee would have the option to use sick time or PTO (pragmatically, the employee would use the Emergency Sick Leave mentioned above at regular pay rate)
  • Weeks 3 – 12 would be paid at 2/3 of the regular pay rate.  If the employee has a varying schedule, a 6-month look back period would be used to determine the average number of hours scheduled.

• What can it be used for?
  • To seek diagnosis or treatment for COVID-19
  • If you are quarantined due to COVID-19
  • To care for a family member with COVID-19.  The definition of family members includes  parent/parent-in-law, spouse/partner, next of kin, child under 18, domestic partner’s child under 18, grandparent or grandchild.  It also includes pregnant women, senior citizens, and disabled individuals an employee needs to care for.
  • To care for a child due to school or daycare closure
  • To comply with a recommended order from a public official or healthcare provider

• How is it paid for?
  • Employers will initially foot the bill for this expense
  • Employers will be able to claim a tax credit on a quarterly basis

• Other items of note
  • Normal FMLA medical certification requirements can be relaxed – if you have a note from a doctor, this should be sufficient to verify the need for leave
  • Employees are not guaranteed reinstatement if they work for an organization with 25 or fewer employees
  • Emergency Family and Medical Leave Expansion (EFMLEA) paid seek leave is set to expire 12/31/2020
  • Employers with 25 or fewer employees may request exemption if providing the leave would jeopardize the viability of the business.  Roo does not yet have details about how to apply for this exemption

 3. Modifications to Unemployment Insurance
 If YOU have been permanently, or temporarily laid off, or if your hours have been significantly reduced, you may apply for unemployment benefits.  The 5-day waiting period has been eliminated, so you may receive benefits immediately. If eligible, you may receive up to 50% of your normal wage, to a maximum of $740 / week.  https://www.uimn.org/applicants/needtoknow/news-updates/covid-19.jsp
 
There is also good news for SMALL BUSINESS OWNERS - you may also apply for unemployment, and the five-week limitation has been removed. Any layoffs due to coronavirus will not be charged to the employer UI account.    https://www.uimn.org/applicants/affectsbenefits/ownership/index.jsp
 
For the SELF-EMPLOYED , it is possible, but unlikely, that you can claim unemployment benefits.  Your chances are better if you opted into the unemployment insurance pool. 
https://www.uimn.org/applicants/affectsbenefits/self-employment/index.jsp
 
Please do reach out by phone (763-228-8496) or email (kelly@roosolutions.net) if we can help.