Obligations of a small business – COVID-19

In mid-March, Congress passed the Families First Coronavirus Response Act (“FFCRA”). President Trump signed the bill, and it went into effect on April 1, 2020.

The FFCRA contains many provisions, and two are particularly important for small businesses.

First, the Act entitles certain employees to receive up to two weeks of paid sick leave if they are unable to work for certain reasons related to COVID-19. Generally speaking, full time employees receive their regular rate of pay. Calculating what is owed to a part-time employee becomes a little more complicated.

Employees who are unable to work for certain other reasons related to COVID-19 receive 2/3rds their regular rate of pay.

Second, the Act permits certain employees to take up to twelve weeks of expanded family and medical leave, ten of which are paid. (Usually, leave under the FMLA is unpaid.)

The Act also imposes certain limitation, or caps, on how much an employee can receive.

The Department of Labor has now issued a 124 page Regulation. Sifting through this Regulation to determine exactly what an employer must do is a complicated process. The scope of this Regulation is far beyond what can be posted here.

The Panter Law Firm has already been called upon to render advice as to the obligations of an employer under the Act.

If you are a small business owner and have questions about your employees and your obligations, give us a call.

Panter Law Firm, PLLC, 7736 Old Canton Road, Suite B, Madison, MS 39110