Day 7 - Coronaworld
Today we have some good news to share. On the health front, some promising treatments seem to be getting fast tracked for COVID-19 (google Chloroquine), which shines a bit of light at the end of a tunnel that was looking rather dark. On the stimulus front, all sorts of useful things are being discussed. The National Restaurant Association is pushing for all of the great things we did in DC to be emulated on a national level, including restaurant grants and enhanced support for our displaced employees. On the Federal level, we have all heard planning discussions for immediate individual stimulus checks, which would help directly offset the economic hit to displaced workers, as well as jump start consumer spending after the crisis.
In regards to tangible, actionable news, the Families First Coronavirus Response Act was signed into law, as expected, providing us with a great new tool to make it through the crisis. The law has a number of provisions including the provision of free COVID-19 testing, financial support from the Federal Government to vital safety net programs like SNAP and WIC, as well as backstop funding for state unemployment funds. This was crucial support and should be applauded.
It also included an immediate mandatory expansion of paid sick leave for all employers in the US with less than 500 employees, including self-employed workers. This paid sick leave will be paid for by the Federal Government through payroll tax credits, so bigger employers are excluded as they are expected to provide this leave on their own dime. A comprehensive overview of the provisions can be found here.
The key points here are as follows:
Employees are now allowed 12 weeks of Emergency Family Medical Leave, including 50 days of paid leave due to a need for leave to care for a child under 18 years of age if their school or childcare is closed due to the Public Health Emergency.
Employees are now allowed 10 days of additional paid sick leave for various coronavirus related reasons (including experiencing symptoms of COVID-19 and seeking medical diagnosis).
The Federal Government will pay for this leave via refundable payroll tax credits, subject to certain dollar limits per day.
These tools provide significant employee support tools during the crisis, as well as an important planning tool for employers for employee retention during the crisis. As always, we will be here for you to discuss the potential application of these rules and help you manage through the crisis.
- Matt