Coronavirus (COVID-19) Emergency Small Business Bill Passes Senate

On March 18, 2020, the United States Senate passed the Families First Coronavirus Response Act (which the House of Representatives passed on March 14, 2020) to address how the Coronavirus/COVID-19 Pandemic will alter and affect businesses. The Families First Coronavirus Response Act is now going to be presented to President Trump who can either sign or veto the Act

The Families First Coronavirus Response Act, if passed, will significantly address actions for small businesses throughout the United States, specifically targeting small businesses with between 50 and 500 employees. The bill would allow exemptions for businesses with less than 50 employees under certain circumstances. Currently the Families First Coronavirus Response Act, as it passed in the House of Representatives and the Senate, requires business with between 50 and 500 employees to immediately expand emergency paid sick leave and family medical leave. The Act also provides for free testing for Coronavirus/COVID-19.

Paid Sick Leave Under The Families First Coronavirus Response Act

The Paid Sick Leave, under Families First Coronavirus Response Act & the Senate, will require all employers with between 50 and 500 employees to provide 80 hours of sick leave pay to all full-time employees that could miss work due to an illness or the care of a family member with an illness resulting from the Coronavirus/COVID-19 virus. This Coronavirus Response paid sick leave is in addition to any other paid sick leave already be offered by each small business.

Family Medical Leave The Families First Coronavirus Response Act

The Family Medical Leave, under Families First Coronavirus Response Act, requires employers with between 50 and 500 employees to provide PAID FMLA leave to employees who are sick or caring for a family member who is sick as a result of the COVID-19 pandemic. This Coronavirus Response leave must be provided to all employees who have been with the employer for 30 days. The first 14 days of the Coronavirus Response FMLA leave may be unpaid, but after those days pay shall continue for the employee at a rate of 2/3rds of the employee’s regular rate of pay. The current version of the Act does limit the eligibility for twelve weeks of paid family leave only to parents who are specifically caring for children whose schools have closed.

Employers will be permitted to apply for and may receive tax credits for the payments made with regards to the paid sick leave and FMLA as it relates to the coronavirus pandemic. The Families First Coronavirus Response Act contains specific definitions and requirements in order for employees to qualify. In addition, it provides specific limitations with regard to the tax credit that employers can receive.  Longman & Van Grack will continue to monitor the Families First Coronavirus Response Act and update our website with any changes made to the Families First Coronavirus Response Act prior to the bill becoming final.

Adam Van Grack and Robb Longman and the other business law attorneys at Longman & Van Grack practice in all areas of business law and tax law in Maryland and Washington DC. Contact us at (301) 291-5027 to discuss your business, company, tax, or coronavirus concern one of our business law attorneys at one of our Offices in Rockville, Maryland, Bethesda, Maryland, or Washington DC.