Coronavirus (COVID-19) Emergency Legislation Affecting Businesses

On March 14, 2020, the House of Representatives passed the Families First Coronavirus Act to address how the Coronavirus Pandemic will affect businesses. The Families First Corona virus Act is going before the Senate soon which could make changes to the Act, but it will most likely remain extremely similar to its current form.

The Families First Coronavirus Act, if passed, will have a significant effect on small business throughout the United States, specifically those businesses with less than 500 employees. Currently the Families First Coronavirus Act, as it passed in the House of Representatives, requires business with less than 500 employees to expand emergency paid sick leave and family medical leave.

Paid Sick Leave Under The Families First Coronavirus Act

Paid Sick Leave requires employers with less than 500 employees to provide 80 hours of sick leave pay to all full-time employees that miss work due to an illness or the care of a family member with an illness resulting from the COVID-19 virus. This paid sick leave is in addition to any other paid sick leave already be offered by the employer.

Family Medical Leave The Families First Coronavirus Act

Family Medical Leave requires employers with less than 500 employees to provide PAID FMLA leave to employees who are ill or caring for a family member who is ill as a result from the COVID-19 pandemic. This leave must be provided to all employees who have been with the employer for 30 days. The first 14 days of the 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.

Employers can 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 Act contains specific definitions and requirements in order for employees to qualify. In addition, it provides specific limitations with regards to the tax credit that employers can receive.  Longman & Van Grack will continue to monitor the Families First Corona virus Act and update this page with any changes made to the Families First Coronavirus Act prior to it becoming final.

Robb Longman and the other business law and tax law attorneys at Longman & Van Grack skillfully 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 Maryland (Rockville or Bethesda) or Washington DC.