Mandatory Sick Leave
The largest impact on employers are the mandatory sick leave provisions. All employers will be required to immediately provide 14 days of paid sick leave in the event of a "public health emergency" (including the current COVID-19 pandemic). Paid sick leave must cover days when:
(i) an employee’s child’s school is closed due to a public health emergency;
(ii) the employer is closed due to a public health emergency; or
(iii) the employee or a family member is quarantined due to a public health emergency.
Small businesses (those with 50 or fewer employees) will be reimbursed for the cost of providing this additional paid sick leave by submitting an affidavit to the Department of Labor.
Paid Family Leave
The Act also creates and funds a new federal emergency paid family leave program. Eligible individuals are entitled to receive benefits for a month in which they take 14 or more days of leave from work due to qualifying COVID-19 events (up to a maximum of 3 months). Days for which a worker receives either pay from their employer (wages, paid sick leave, or other paid time off) or unemployment do not count. An "eligible individual" is a person who was working in the 30 days before being impacted by the qualifying COVID-19 event. Qualifying COVID-19 events include:
(i) The worker has a current diagnosis of COVID-19.
(ii) The worker is quarantined (including self-imposed quarantine) at the instruction of a health care provider, employer, or government official, to prevent the spread of coronavirus.
(iii) The worker is caring for another person who has COVID-19 or who is under a quarantine related to COVID-19
(iv) The worker is caring for a child or other individual who is unable to care for themselves due to a COVID-19 related closing of their school, child care facility, or other care program.
The benefit amount is two-thirds of the individual’s average monthly earnings (based on the most recent year of wages or self-employment income), up to a maximum cap of $4,000. Benefits are offset dollar-for-dollar by the amount of any state or private leave benefit the individual also receives. Benefits are not subject to federal income taxes and do not count as income or resources for the purpose of Supplemental Security Income (SSI).
Benefits would be available for leave taken between 01/19/2020 (the date of the first COVID-19 diagnosis in the U.S.) through one year after the bill’s enactment. Applications may be filed up to 6 months after the bill’s enactment and benefits may be paid retroactively. Applicants must attest that they meet the eligibility criteria, and penalties for fraud or misrepresentation that apply to Social Security benefits will apply.
The program will be administered under the Social Security Administration, and all benefits will be paid by federal funding. The Act does not require employer-paid family leave.
(Visit our Employment Law Blog for an article written by Hannah L. Sorcic, counsel with Reed Smith, for more information about the intersection of the coronavirus pandemic and the Family and Medical Leave Act.)
Employee COVID-19 Testing Coverage
The Act requires that private health plans provide full coverage for COVID-19 diagnostic testing, including the cost of a health care provider, urgent care center, or emergency room visit in order to receive testing. Medicaid, Medicare Part B, Medicare Advantage, TRICARE, Indian Health Services, and CHIP will also provide full coverage for testing. The National Disaster Medical System will reimburse the costs of coronavirus testing for uninsured individuals.
Meals for Students/Others
The Act authorizes the Department of Agriculture to issue nation-wide school meal waivers during the COVID-19 pandemic, which eliminates paperwork for states and helps schools utilize programs quickly. Adult and child care centers may serve food outside of the school or center and may waive certain regulations if there is a disruption to the food supply as a result of the COVID-19 emergency. The work and work training requirements of SNAP (i.e., food stamps) are waived during the crisis.
Our team is closely monitoring the situation to ensure we are able to provide the most up-to-date advice to you. Reed Smith has prepared a Coronavirus (COVID-19) Resource Center that is updated frequently as the situation evolves. Please call with questions as we stand ready to discuss any concerns with you.
Client Alert 2020-099
