Congress recently passed H.R. 6201, a bill to assist communities and change how employers handle employee leave during the COVID-19 (coronavirus) public health emergency. The heavily revised version of the bill passed the House on March 13 with 110 pages of text, but the approved language missed several critical edits necessary for the Senate’s consideration. On March 16, the House finalized the technical edits via H. Res. 904 and sent it over to the Senate. On March 18, the bill cleared the Senate, and the President signed the legislation into law just hours later. The bill takes effect immediately.
Main Provisions of the Bill
H.R. 6201 provides assistance to affected individuals between the declaration of the public health emergency on January 31, 2020 and December 31, 2020, though each section may have a slightly different beginning or end date for administrative purposes. The legislation contains six notable provisions that we have placed into two categories:
The business regulations of the law do two primary things: expand FMLA and create new rules for the payment of sick leave related to COVID-19. The law also introduces a payroll tax credit to offset employer expenses related to the expanded provisions.
Emergency Family Medical Leave Act (FMLA) Expansion – The legislation expands certain FMLA provisions to include businesses with 500 or fewer employees. As such, most companies will have to offer employees certain job security protections during the COVID-19 public health emergency.
Businesses must allow employees to take leave when they are unable to work (or telework) because they must care for a son or daughter under the age of 18 due to a school or day care closing. The first 10 days of leave can be unpaid, but the remainder, up to a maximum of 12 weeks, must be paid at a rate of no less than 2/3 of their regular pay rate. The maximum rate of pay is capped at $200/day and $10,000 in aggregate). Businesses must keep jobs open for returning employees.
The Secretary of Labor has the authority to exempt small businesses with fewer than 50 employees if the imposition jeopardizes the viability of the business. Employers of health care workers and emergency responders can elect to exclude employees from the new FMLA protections.
Emergency Paid Sick Leave – Private businesses with fewer than 500 employees and public entities with more than 1 employee must provide paid sick leave for employees that are unable to work (or telework) due to:
Employees cannot be discharged, disciplined, or discriminated against for taking leave.
The Secretary of Labor has the authority to exempt small businesses with fewer than 50 employees if the imposition would jeopardize the viability of the business. The Secretary can also permit employers of health care workers and emergency responders to exclude certain employees from the new FMLA protections.
Payroll Tax Credits – Private businesses that employ fewer than 500 employees are eligible for a payroll tax credit for FMLA and emergency paid sick leave related to COVID-19. The credit should allow business to recover most, if not all, of the newly mandated expenditures. The tax credit is not applicable to publicly-owned federal, state, or local government entities.
Community Assistance
Nutrition Waivers - Nutrition waivers allow for innovation and flexibility during the COVID-19 public health emergency so meals reach students, families, and vulnerable adults. The support affects various programs and technologies including WIC, SNAP, schools, and EBT.
Unemployment Insurance Stabilization - In anticipation of a spike in unemployment, the federal government will provide additional funds and flexibility to states if unemployment rates increase by 10% in any given quarter.
Health Provisions – The bill requires all insurers to pay the entire cost of COVID-19 testing and related office visits. Insurers cannot pass portions of covered items to beneficiaries through deductibles, co-payments, or other cost-sharing arrangements. The bill also provides an opportunity for states to cover COVID-19 testing and diagnosis for uninsured individuals during the emergency period.
We will continue to monitor for any developments from the Secretary of Labor as they relate to small businesses with 50 or fewer employees and any healthcare worker or emergency responder exemptions.
SOURCE LINKS
https://docs.house.gov/billsthisweek/20200309/BILLS-116hr6201-SUS.pdf
https://www.congress.gov/bill/116th-congress/house-resolution/904/text
Main Provisions of the Bill
H.R. 6201 provides assistance to affected individuals between the declaration of the public health emergency on January 31, 2020 and December 31, 2020, though each section may have a slightly different beginning or end date for administrative purposes. The legislation contains six notable provisions that we have placed into two categories:
- Increased Business Regulations:
- Payroll tax credits for new COVID-19 FMLA and paid sick leave benefits.
- Emergency Family Medical Leave Act (FMLA) expansion.
- Emergency paid sick leave.
- Community Assistance:
- Nutrition waivers.
- Unemployment insurance stabilization.
- Health provisions (COVID-19 testing and procedures).
The business regulations of the law do two primary things: expand FMLA and create new rules for the payment of sick leave related to COVID-19. The law also introduces a payroll tax credit to offset employer expenses related to the expanded provisions.
Emergency Family Medical Leave Act (FMLA) Expansion – The legislation expands certain FMLA provisions to include businesses with 500 or fewer employees. As such, most companies will have to offer employees certain job security protections during the COVID-19 public health emergency.
Businesses must allow employees to take leave when they are unable to work (or telework) because they must care for a son or daughter under the age of 18 due to a school or day care closing. The first 10 days of leave can be unpaid, but the remainder, up to a maximum of 12 weeks, must be paid at a rate of no less than 2/3 of their regular pay rate. The maximum rate of pay is capped at $200/day and $10,000 in aggregate). Businesses must keep jobs open for returning employees.
The Secretary of Labor has the authority to exempt small businesses with fewer than 50 employees if the imposition jeopardizes the viability of the business. Employers of health care workers and emergency responders can elect to exclude employees from the new FMLA protections.
Emergency Paid Sick Leave – Private businesses with fewer than 500 employees and public entities with more than 1 employee must provide paid sick leave for employees that are unable to work (or telework) due to:
- A federal, state, or local quarantine related to COVID-19.
- The recommendation by a healthcare provider to self-quarantine due to COVID-19.
- Symptoms of COVID-19 where the employee is seeking a medical diagnosis.
- A need to care for a family member subject to quarantine related to COVID-19.
- The need to care for a son or daughter after a school or day care closure or the unavailability of a childcare provider due to COVID-19 precautions.
Employees cannot be discharged, disciplined, or discriminated against for taking leave.
The Secretary of Labor has the authority to exempt small businesses with fewer than 50 employees if the imposition would jeopardize the viability of the business. The Secretary can also permit employers of health care workers and emergency responders to exclude certain employees from the new FMLA protections.
Payroll Tax Credits – Private businesses that employ fewer than 500 employees are eligible for a payroll tax credit for FMLA and emergency paid sick leave related to COVID-19. The credit should allow business to recover most, if not all, of the newly mandated expenditures. The tax credit is not applicable to publicly-owned federal, state, or local government entities.
Community Assistance
Nutrition Waivers - Nutrition waivers allow for innovation and flexibility during the COVID-19 public health emergency so meals reach students, families, and vulnerable adults. The support affects various programs and technologies including WIC, SNAP, schools, and EBT.
Unemployment Insurance Stabilization - In anticipation of a spike in unemployment, the federal government will provide additional funds and flexibility to states if unemployment rates increase by 10% in any given quarter.
Health Provisions – The bill requires all insurers to pay the entire cost of COVID-19 testing and related office visits. Insurers cannot pass portions of covered items to beneficiaries through deductibles, co-payments, or other cost-sharing arrangements. The bill also provides an opportunity for states to cover COVID-19 testing and diagnosis for uninsured individuals during the emergency period.
We will continue to monitor for any developments from the Secretary of Labor as they relate to small businesses with 50 or fewer employees and any healthcare worker or emergency responder exemptions.
SOURCE LINKS
https://docs.house.gov/billsthisweek/20200309/BILLS-116hr6201-SUS.pdf
https://www.congress.gov/bill/116th-congress/house-resolution/904/text
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