Assured Partners Provides Help Navigating Families First Coronavirus Response & CARES Acts

In an effort to summarize and provide you with useful information on the Families First Coronavirus Response Act and CARES Act, we have put together the below information in the hope that the information is helpful to you in navigating through these challenging times.   

Families First Coronavirus Response Act
The Families First Coronavirus Response Act (FFCRA) was passed by Congress and was signed shortly after by President Trump on March 18th, becoming effective on April 1, 2020. The Act significantly expands existing Family and Medical Leave Act (FMLA) requirements and extends paid sick leave coverage through the end of the year.
 
COVID FMLA and COVID Paid Sick Leave both apply to all private employers with less than 500 employees. COVID FMLA applies to all employees who have been employed by a covered employer for at least 30 calendar days. On the other hand, COVID Paid Sick Leave applies to all employees regardless of length of employment.
 
COVID FMLA
In order to qualify for COVID FMLA, an employee must be unable to work (or telework) due to:

• A need to care for a son or daughter under 18 years of age if the child's school or place of care has been closed or
• The childcare provider is unavailable due to the COVID-19 public health emergency.

Employees would qualify for up to 12 weeks of COVID FMLA leave within a 12-month period.
 
COVID Paid Sick Leave
COVID Paid Sick Leave more broadly applies when an employee is unable to work or telework and:

1. Is subject to Federal, State, or local quarantine or isolation order related to COVID-19;
2. Is advised by a healthcare provider to self-quarantine due to concerns related to COVID-19;
3. Is experiencing COVID-19 symptoms and seeking a medical diagnosis;
4. Is caring for an individual subject to (1) or (2);
5. Is caring for a son or daughter whose school or place of care has been closed or whose childcare provider is unavailable due to COVID-19; or
6. Is experiencing any other "substantially similar condition" as defined by the Secretary of Health & Human Services in consultation with the Secretaries of Treasury and Labor.

Full-time employees with a qualifying need as listed above:

• Entitled to 80 hours of COVID Paid Sick Leave.
• Are those who are normally scheduled to work 40 or more hours per week.

Part-Time employees:

• Are eligible for a prorated amount based on the average number of hours worked over a two-week period.
• Are those who are normally scheduled to work fewer than 40 hours per week.

Wages are capped at $511 per day when taken for reason 1-3 above (caring for self).

For reasons 4-6 above (caring for others or "substantially similar condition"), the wage paid would be 2/3rds the calculated rate, up to $200 per day.
 
Employers with less than 50 employees may qualify for an exemption under FFCRA if:

1. The employer has fewer than 50 employees;
2. The leave is requested because the child's school or place of care is closed, or childcare provider is unavailable, due to COVID-19 related reasons; and
3. An authorized officer of the business has determined that:
   1. The small business's expenses and financial obligations exceed available business revenues and would cause the business to cease operating at a minimal capacity;
   2. The absence of the employee or employees would entail substantial risk to the financial health or operational capabilities of the small business due to their skills, knowledge, or responsibilities;
   3. There are not enough sufficient workers who are able, willing, and qualified, and who will be available at the time and place needed, to perform the labor or services required.

Employers are required to post notice of the COVID Sick Leave provisions. A model notice can be found here. This poster must be posted/distributed by April 1, 2020.
 
For more information on the Families First Coronavirus Response Act, the Department of Labor has created a FAQ that can be found here.
 
Are you having trouble navigating the interaction between the new federal and state COVID-19 benefits?
To assist employers and employees the NJ DOL has now issued updated printable guides outlining COVID-19 related benefits and scenarios for NJ employees.
Families First Coronavirus Response Act
The Families First Coronavirus Response Act (FFCRA) was passed by Congress and was signed shortly after by President Trump on March 18th, becoming effective on April 1, 2020. The Act significantly expands existing Family and Medical Leave Act (FMLA) requirements and extends paid sick leave coverage through the end of the year.
 
COVID FMLA and COVID Paid Sick Leave both apply to all private employers with less than 500 employees. COVID FMLA applies to all employees who have been employed by a covered employer for at least 30 calendar days. On the other hand, COVID Paid Sick Leave applies to all employees regardless of length of employment.
 
COVID FMLA
In order to qualify for COVID FMLA, an employee must be unable to work (or telework) due to:

• A need to care for a son or daughter under 18 years of age if the child's school or place of care has been closed or
• The childcare provider is unavailable due to the COVID-19 public health emergency.

Employees would qualify for up to 12 weeks of COVID FMLA leave within a 12-month period.
 
COVID Paid Sick Leave
 
COVID Paid Sick Leave more broadly applies when an employee is unable to work or telework and:

1. Is subject to Federal, State, or local quarantine or isolation order related to COVID-19;
2. Is advised by a healthcare provider to self-quarantine due to concerns related to COVID-19;
3. Is experiencing COVID-19 symptoms and seeking a medical diagnosis;
4. Is caring for an individual subject to (1) or (2);
5. Is caring for a son or daughter whose school or place of care has been closed or whose childcare provider is unavailable due to COVID-19; or
6. Is experiencing any other "substantially similar condition" as defined by the Secretary of Health & Human Services in consultation with the Secretaries of Treasury and Labor.

Full-time employees with a qualifying need as listed above:

• Entitled to 80 hours of COVID Paid Sick Leave.
• Are those who are normally scheduled to work 40 or more hours per week.

Part-Time employees:

• Are eligible for a prorated amount based on the average number of hours worked over a two-week period.
• Are those who are normally scheduled to work fewer than 40 hours per week.

Wages are capped at $511 per day when taken for reason 1-3 above (caring for self).
 
For reasons 4-6 above (caring for others or "substantially similar condition"), the wage paid would be 2/3rds the calculated rate, up to $200 per day.
 
Employers with less than 50 employees may qualify for an exemption under FFCRA if:

1. The employer has fewer than 50 employees;
2. The leave is requested because the child's school or place of care is closed, or childcare provider is unavailable, due to COVID-19 related reasons; and
3. An authorized officer of the business has determined that:
   1. The small business's expenses and financial obligations exceed available business revenues and would cause the business to cease operating at a minimal capacity;
   2. The absence of the employee or employees would entail substantial risk to the financial health or operational capabilities of the small business due to their skills, knowledge, or responsibilities;
   3. There are not enough sufficient workers who are able, willing, and qualified, and who will be available at the time and place needed, to perform the labor or services required.

Employers are required to post notice of the COVID Sick Leave provisions. A model notice can be found here. This poster must be posted/distributed by April 1, 2020.
 
For more information on the Families First Coronavirus Response Act, the Department of Labor has created a FAQ that can be found here.
 
Are you having trouble navigating the interaction between the new federal and state COVID-19 benefits?
To assist employers and employees the NJ DOL has now issued updated printable guides outlining COVID-19 related benefits and scenarios for NJ employees.

Click here for the updated chart on COVID-19 Scenarios & Benefits Available (Click here for a version in Spanish)
 
Click here for the guide on What NJ Workers Need to Know About the Families First Coronavirus Response Act
 
The CARES Act
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law. The $2 trillion package provides economic relief to individuals, health care providers, small businesses, and heavily affected sectors of the economy, and is intended to strengthen the federal government and health care system's response to the COVID-19 pandemic. 
 
Key economic provisions of the CARES Act include:

• Individual Stimulus Payments:
  • Provides a one-time $1,200 refundable tax credit for individuals ($2,400 for joint taxpayers), plus a flat $500 for each child under age 17.
  • Will not be counted as taxable income for recipients.
  • Higher income earners may only qualify for a portion of the credit or nothing at all as the benefit phases out for those with adjusted gross incomes of $75,000 or more ($150,000 for joint taxpayers).
• $349 billion allocated for the Paycheck Protection Program:
  • Meant to help small businesses (fewer than 500 employees) impacted by the pandemic and economic downturn to make payroll and cover other expenses from February 15th to June 30th.
  • Businesses may take out loans up to $10 million - limited to a formula tied to payroll costs - and can be used to cover the following business expenses:
    • Payroll costs - salary, wages, commissions and tips, as well as retirement benefits, certain employer-provided benefits, severance payments, state and local taxes paid on employee compensation, and other compensation paid to employees and independent contractors. (Compensation is limited to $100,000 or less)
    • Rent
    • Utilities
    • Interest on Mortgage Payments
    • Insurance Premiums
    • Interest on other debt obligations incurred before February 15, 2020
• Expanded unemployment insurance for workers:
  • $600 per week increase in benefits for up to four months
  • Federal funding of unemployment for those not usually eligible for these benefits (self-employed, independent contractors).
  • The federal government will fund an additional 13 weeks of unemployment benefits through December 31, 2020.
• Short Term Compensation Programs:
  • Provides $100 million in federal grant funding to support short-term compensation arrangements, where employers can reduce employee hours instead of laying off workers and impacted employees will receive a pro-rated unemployment benefit.
• Payroll Tax Credit:
  • For qualifying employers whose operations were fully or partially suspended, or whose gross receipts declines by more than 50%, provides a fully refundable payroll tax credit for 50% of wages paid up to $10,000 during the public health emergency.

Healthcare Related Provisions include:

• COVID-19 Vaccine Coverage:
  • Requires commercial insurers to cover any qualifying coronavirus preventive service (I.e., vaccines) defined by the US Preventive Services Task Force.
  • Requires Medicare and Medicare Advantage organizations to cover any COVID-19 vaccines with no cost-sharing.
• COVID-19 Testing Coverage:
  • Clarifies existing law requiring all COVID-19 testing to be covered by group health plans and individual market issuers without cost-sharing, including those tests without an emergency authorization by the FDA.
• Telehealth and High-Deductible Health Plans (HDHPs):
  • Allows payment for "telehealth and other remote care services" to be permitted, below the deductible, in a health savings account (HSA)-qualified high-deductible health plan.
  • This means telehealth expenses can be covered pre-deductible without compromising HSA eligibility.
  • This remains in place until December 31, 2021.
• Expands FSA, HRA, and HSA to purchase OTC Drugs:
  • Removes the restriction on the use of flexible spending account (FSA), health reimbursement arrangement (HRA), and the HSA funds for the purchase of:
    • Over-the-counter drugs and medicines
    • menstrual care products.
  • There is no expiration date.
  • Effective for expenses incurred on or after January 1, 2020.

The full bill can be read here.
Small Business Owner Guide to CARES
Small Business Guidance and Loan Resources

Reach Aida Visakay at aida.visakay@assuredpartners.com or 973-669-2332.
AssuredPartners, Inc. and its partner agencies strive to provide you with insurance and benefit related information as part of our service to you that is both accurate and informative. Laws, regulations and circumstances change frequently, and similar situations or slight changes to laws and regulations can lead to entirely different results. The information contained in this document is for educational and informational purposes only, and, as such, you should always seek the advice of competent legal counsel for answers to your specific questions.