President Donald Trump on Wednesday signed the Families First Coronavirus Response Act, a measure created to ensure paid sick leave for workers and to widen coronavirus testing.<\/p>\n
Senators overwhelmingly supported the House bill that covers the cost of all coronavirus testing, expands federal food programs serving low-income seniors and needy families, and provides paid sick leave for workers forced to stay at home.<\/p>\n
The vote was passed 90-8.<\/p>\n
This legislation will:<\/p>\n
The new law grants two weeks of paid sick leave at 100 percent of the person\u2019s normal salary, up to $511 per day. It would also provide up to 12 weeks of paid family and medical leave at 67 percent of the person\u2019s normal pay, up to $200 per day.<\/p>\n
In other words, paid sick leave would fully compensate employees earning up to about $130,000 a year for that two-week period, and paid family and medical leave would fully compensate employees earning up to about $75,000 a year for the three-month period, according to the Center on Budget and Policy Priorities.<\/p>\n
In addition, employees don\u2019t necessarily have to have the coronavirus to receive the benefits. The two weeks of paid sick leave apply to anyone told to quarantine, showing symptoms, exposed to the virus, or trying to get a test or preventive care. Although this is a rather broad definition and the IRS likely will have to arrive at an exact rule, it\u2019s apparent that Congress wanted to avoid a situation in which everyone is trying to obtain \u201ca doctor\u2019s note\u201d to qualify.<\/p>\n
Qualifying for family leave is different. An individual is eligible to take up to three months of paid leave to care for a child whose school or child-care facility is closed due to the coronavirus.<\/p>\n
The Act also states that part-time employees will receive paid sick leave equivalent to the number of hours they typically work during a two-week period. For example, if a person usually works 20 hours a week, he or she is eligible for up to 40 hours of pay.<\/p>\n
However, the law doesn\u2019t cover everyone.<\/p>\n
Small and mid-sized companies are required to provide these benefits for workers impacted by the coronavirus, but Labor Secretary Eugene Scalia can exempt businesses with fewer than 50 employees, as well as health-care providers such as hospitals and nursing homes.<\/p>\n
The exemptions would apply if it \u201cwould jeopardize the viability of the business.\u201d At this point, it\u2019s unclear how lenient the Trump administration will be with these exemptions.<\/p>\n
Of course, many small-business owners are worried about how to pay for these benefits, especially at a time when business across numerous industries has basically come to a halt. The bill provides a tax credit to cover the costs. The credit is applied to the tax the company normally pays for each employee\u2019s Social Security. If sick leave or family and medical leave ends up costing more than the Social Security bill, the U.S. government will send the employer a check to cover the remaining costs. How this will be determined is up to the Treasury and the Internal Revenue Service.<\/p>\n
Experts noted one of the biggest issues with these new benefits is the fact that they are largely being paid for by tax credits. That means small businesses will have to apply to the IRS to get a tax credit \u2013 or a tax refund if a person\u2019s tax bill is not as large as the cost of their paid sick and family leave.<\/p>\n
Although the Trump administration has pledged to get this process up and running as quickly as possible, it will take some time to create the forms and procedures.<\/p>\n
Small-business groups have already voiced concerns over the fact that restaurants and travel and hospitality companies have seen sales plummet \u2013 and, as a result, simply don\u2019t have the cash on hand to begin paying these benefits.<\/p>\n
The bill\u2019s signing comes as the Trump administration is busy negotiating with Congress on the crafting of its next emergency relief package \u2013 one that would provide checks of $1,000 or more for Americans and financial lifelines for businesses socked by the current coronavirus pandemic that is ravaging the economy.<\/p>\n
The upcoming bill also is expected to help major industries besieged by a widespread shutdown of the economy, such as the airlines, and help small businesses including restaurants that are being forced to close around the country, but find themselves having to provide mandated paid leave under the new Families First legislation.<\/p>\n
Senators Marco Rubio of Florida and Susan Collins of Maine also have introduced a $300 billion small-business emergency economic relief plan that will help small businesses impacted by the coronavirus pandemic make payroll and cover expenses.<\/p>\n
Senate Majority Leader Mitch McConnell said small businesses that have just been saddled with new sick leave mandates under the Families First bill will need some help as a result.<\/p>\n
\u201cEveryone agrees that workers need relief, but small businesses need relief as well,\u201d he said, on the Senate floor Wednesday before the vote. \u201cThis is literally the worst time in living memory to pile even more burdens and costs onto small business, which are themselves fighting to stay alive, unless we back it up with major assistance.\u201d<\/p>\n
Reports indicate that Democrats have already signaled they\u2019ll be looking to expand sick leave for workers in the next bill as well.<\/p>\n","protected":false},"excerpt":{"rendered":"
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