Under the Families First Coronavirus Act (FFCRA), employers with fewer than 500 employees are required to provide paid sick leave (EPSL) and paid FMLA leave (FMLA+) for certain reasons related to the Coronavirus pandemic. The law went into effect April 1 and its obligations continue through December 31, 2020.

Employers need policies and forms to comply with this new law.

We now have these policies and forms ready for you.

Why Do You Need a New Policy and Forms to Comply with this New Law?

This new law is fraught with compliance issues for employers.  Take, for instance, these risky scenarios for employers that do not document an employee’s leave request:

  • Your employee, Johnny, does not have symptoms of COVID-19 but insists that he needs to take off work to avoid any exposure. Is he eligible to take EPSL? If you and Johnny later dispute the reason for his need for leave, do you have a leave request form from Johnny to back up your story? Nope.
  • One of your employees, Betty, sought FMLA+ for a COVID-19 related reason, but a dispute later arises over whether you improperly denied her intermittent leave to care for her child whose school was closed. You recall that she requested continuous leave, but you have nothing in writing confirming that fact.
  • You require your employee, Gnarls, to exhaust his employer-provided PTO at the same time he is taking EPSL. After the fact, he claims that he did not give you approval to burn his accrued paid leave at the same time he was taking EPSL .  You recall him telling you to apply his accrued leave, but you have nothing in writing to confirm. Is this a violation of the law?

This hastily-drafted law is a mess, and it undoubtedly will create liability for employers that fail to document the employee’s request for EPSL or FMLA+.  Employer compliance is made even more difficult because the Department of Labor has made clear that it will not be publishing model policy language or model forms for employers to use for EPSL or FMLA+.

This creates significant compliance risks.

Employers undoubtedly want to make their employees aware not only of their leave entitlement under this new law, but also the expectations for requesting and taking EPSL or FMLA+. Additionally, it also is critical that employers obtain in writing their employees’ request for leave, including whether they are requesting intermittent leave (and why), whether they want other forms of paid leave to run instead of or concurrently with EPSL and FMLA+, among other important issues.

Our Solution

To meet this need, we have created two template policies (one policy for EPSL and another for FMLA+) and four template forms based on the law and the Department of Labor’s published Questions & Answers, which were updated just this past week.

Specifically, we can provide the following to improve your compliance efforts:

Policies

1. Emergency Paid Sick Leave Act policy
2. Emergency Family and Medical Leave for Public Health Emergencies policy

Forms

3. Emergency Paid Sick Leave Act (EPSL) Leave Request and Notice Form
4. Emergency Family and Medical Leave Expansion Act (FMLA+) Leave Request and Notice Form
5. Notice of Eligibility for Emergency Family and Medical Leave Expansion Act (FMLA+) Leave and Rights and
Responsibilities; and
6. Designation Notice for Emergency Family and Medical Leave Expansion Act (FMLA+)

If you are interested in obtaining these model policies and/or forms, please contact me at jnowak@littler.com for pricing.

For the past month, I’ve been in the leave law trenches with several Littler colleagues Alexis Knapp, Jim Paretti, Sebastian Chilco and Michael Lotito. The ‘virtual’ trenches, that is, which serves them well, as they have no clue I’ve spent nearly the entire time without a shower and in my PJs.

When we all learned Friday afternoon that the Department of Labor had published yet another set of Q&As interpreting the emergency paid sick and paid FMLA leave law, I won’t sugar coat it – we wanted to cry.  After all, we were fresh off our analysis of the new DOL regulations the day before, and at least two phases past bleary-eyed.

After kvetching back and forth in a flurry of emails over the course of approximately 1.85 minutes, we knew we had to get back to work. Our colleague, Sebastian, took the lead in drafting our analysis of the latest round from the DOL. I couldn’t say it any better than he did, so I’ve lifted much of his great work (added some of my embellishments) and publish it here.

After giving employers a day off from addressing new information concerning the federal Families First Coronavirus Response Act (FFCRA), the DOL released 20 new Q&As concerning employer obligations and employee rights under the new paid sick leave (EPSL) and paid FMLA leave (FMLA+) law.  New questions and answers start at #60, with some minor revisions to earlier Q&As. The full set of Q&As can be found here.

In its latest round, DOL reiterated much of what it pronounced in EPSL and FMLA+ regulations issued earlier last week.  Notably, the DOL again touched upon shelter-in-place orders and their impact on EPSL and FMLA+, further explained various reasons for EPSL, and fine-tuned some earlier answers.

We highlight the relatively important stuff here:

More on Shelter-in-Place Orders and No Self-Quarantines: In the new batch of Q&As, the DOL addresses several situations regarding how employers should evaluate FFCRA leave eligibility due to shelter-in-place orders. For example, in response to a question about how employees should know whether they can receive EPSL for a “Federal, State or local quarantine or isolation order,” the DOL explains in FAQ #60:

For purposes of the FFCRA, a Federal, State, or local quarantine or isolation order includes quarantine or isolation orders, as well as shelter-in-place or stay-at-home orders, issued by any Federal, State, or local government authority that cause you to be unable to work (or to telework) even though your employer has work that you could perform but for the order. You may not take paid sick leave for this qualifying reason if your employer does not have work for you as a result of a shelter-in-place or a stay-at-home order… (emphasis added).

Also, in the DOL’s temporary regulations issued on April 1, the Agency highlights the many ways FFCRA emergency paid sick leave (EPSL) differs from pre-FFCRA state and local mandatory paid sick leave laws. For instance, in new FAQ #62, the DOL drills home this point by clarifying that employees cannot use FFCRA leave to self-quarantine on their own without any input from a medical professional:

You may not take paid sick leave under the FFCRA if you unilaterally decide to self-quarantine for an illness without medical advice, even if you have COVID-19 symptoms.

The examples the DOL provides on shelter-in-place and quarantine situations cover quite a bit of ground and are worth a careful read.

School & Care Place Closure Applies, Even if Online: The DOL emphasizes “closure” standards for schools and places of care focus on physical closures, so even if the entity provides “online” or “distance learning” instruction, a closure occurs and FFCRA leave might be available if all conditions for leave exist.

Watch Out for the Use of the Word “Individual” Under EPSL: Different reasons for EPSL use different definitions. While school/closure and childcare leave may be available only for a son or daughter as the law defines them, caring for someone else who may have COVID-19-related medical issues specified under EPSL is broader, and the law uses the term “individual.”

A new Q&A reminds employers that, even if employees do not qualify to take leave to care for their own child, it does not mean leave might not be available to care for someone else’s child. Generally, employees can take EPSL if, among other reasons, they need to care for an “individual” who is subject to a federal state, or local quarantine or isolation order related to COVID-19 or for whom a health care provider advises self-quarantine due to COVID-19 concerns. As a reminder, the DOL rules define an “individual” as an employee’s immediate family member, a person who regularly resides in the employee’s home, or a similar person with whom the employee has a relationship that creates an expectation that the employee would care for them in a quarantine situation.

In a bit of comic relief (at least as far as my friend Matt Morris and I are concerned), the DOL put us at ease in FAQ #64 by reminding employees, “You may not take paid sick leave to care for someone with whom you have no relationship.” As a result, Matt and I (but mostly Matt) are relieved to know that DOL shut the door on any possibility your employee might have to care for the guy at the end of the bar at the local tavern.  [At a time like this, it’s the small victories, people, the small victories.]

DOL Reminds Us that Really Only One Person Should Care for a Child: Naturally, clients have been asking me whether they need to provide leave to an employee because of their kid’s closed school when there is ample evidence that the other parent or another caretaker is available.  In FAQ #69, DOL again reminds us that leave is not appropriate in these circumstances:

You may take paid sick leave or expanded family and medical leave to care for your child only when you need to, and actually are, caring for your child if you are unable to work or telework as a result of providing care. Generally, you do not need to take such leave if a co-parent, co-guardian, or your usual child care provider is available to provide the care your child needs. See Question 20 for more details. (My emphasis)

“Substantially Similar Condition” Remains a Mystery: The DOL notes that the Department of Health and Human Services (HHS) has not yet issued guidance on what this last reason for EPSL may include, but, if HHS does not, the DOL will do so.

More Examples of Leave Being Unavailable Without “Work” to Perform: The DOL continues to provide examples of situations in which FFCRA leave is unavailable because employees have no work to perform. The latest examples involve seasonal workers during the off-season, and employees not working because they are not at work and receiving workers’ compensation or temporary disability benefits.

The DOL also addresses scenarios in which employees return to work from a non-working period. For example, if an employee returns to light duty or after a voluntary absence, then experiences a qualifying event, the employee might get FFCRA leave if all conditions for leave exist.

Final Thoughts: The DOL also includes new Q&As regarding staffing company headcount/leave, paying employees with entirely irregular schedules, and more details about the DOL’s non-enforcement position it announced that applies through April 17, 2020.

Keep in mind, too: As it updates these Q&As, DOL has continued to refine some of its earlier Q&As with further clarification and explanation.  As a result, employers should always utilize the latest electronic version of those Q&As when looking for answers to questions in real time.

Let me start with a toast.

A toast to the Department of Labor, which was thrust into a spotlight it didn’t seek. After Congress hastily cobbled together a bunch of confusing words on paper providing many American workers with a modest amount of paid sick leave and amending the FMLA to do the same, DOL was tasked with making sense of Congress’ ramblings in a matter of days.

Almost immediately, DOL started issuing FAQs (FAQs 1, FAQs 2, and FAQs 3) to help employers and employees better understand the expectations of the Families First Coronavirus Response Act (FFCRA) with a looming April 1 start date.

With minutes to spare, and on April fools day no less, DOL issued regulations earlier this week setting the playing field for employers as they begin to provide paid sick leave (EPSL) and paid FMLA leave (FMLA+) beginning yesterday, April 1, through December 31, 2020.

Under these circumstances, a job well done.

The new regulations cover a ton of ground — overall, they support the general requirement that employers with fewer than 500 employees must provide EPSL and FMLA+ to employees who cannot work due to reasons relating to the coronavirus pandemic and who must care for a child whose school or childcare is closed or unavailable due to the virus.

But the DOL covers a whole lot more:  in 124 pages of regulations (pdf), DOL extensively covers employer coverage, how small businesses may be exempted from the new law, regular rate calculations, intermittent leave, substitution of accrued paid leave with EPSL and FMLA+, employer/employee notice issues, and documents employees must provide to request a leave.

Much to cover here.  I can’t possibly answer every question you have, but here’s my take, which I hope eases your burden a bit.

Grab a cup of coffee, put your feet up, and let’s work through these regs:

Employer Coverage

As we knew from the law itself, the DOL has confirmed the new law applies to a private-sector employer with 499 or fewer employees and most public employers.

When does the employer calculate?  The DOL makes clear that an employer should calculate its total head count when employee’s leave is to be taken.  But the regulations also appear to grandfather an employee once the employer is covered and for the remainder of that same leave. For example, an employer has 480 employees on April 5 when an employee requests leave covered by the law. Even though the employer head count might increase to 520 on April 6, the employee still can remain on leave until they return and/or leave is exhausted. After the employee returns and needs leave again, the employee would be subject to the new head count as of the date of the new leave.  Got it?

Which employees should be counted?  In making this determination, the DOL makes clear the count is a pretty broad sweep, so employers should include: 1) full-time and part-time employees (no independent contractors are counted); 2) only those employees within the United States; 3) employees on leave; 4) temporary employees jointly employed by the employer; and 5) day laborers supplied by a temporary agency.

What about multiple corporate entities – will they be counted together?  Two or more entities are generally separate employers unless they meet the “integrated employer” test under the “classic” FMLA.  If two entities are an integrated employer under the FMLA, then employees of all entities that make up the integrated employer count to determine employer coverage for EPSL and FMLA+ purposes. Both of these tests are highly fact-specific and look to a series of factors, including common ownership, management, business purpose, and day-to-day operations. Insofar as these tests are not susceptible to simple analysis, employers with questions as to whether they should aggregate affiliated companies should consult their favorite employment counsel. [Fyi, I know one.]

Employee Eligibility

For EPSL: An employee is immediately eligible for paid sick leave

For FMLA+: Any full-time or part-time employee that has been on the employer’s payroll for 30 calendar days. The regulations explain that an employee will be considered to have been employed for at least 30 calendar days where:

  1. the employee was on the employer’s payroll for the 30 calendar days immediately prior to the date on which the employee’s leave would begin; or
  2. the employee was laid off or otherwise terminated by the employer on or after March 1, 2020, and rehired or reemployed by the employer on or before December 31, 2020, provided that the employee had been on the employer’s payroll for 30 or more of the 60 calendar days prior to the date the employee was laid off or terminated.

Exception for Health Care Providers and pretty much any one with whom they work:  In the new rules, the DOL allows an employer to exclude health care providers and pretty much anyone associated with a health care provider.  The regulation defines health care provider broadly for this purpose as: anyone employed at any doctor’s office, hospital, health care center, clinic, post-secondary educational institution offering health care instruction, medical school, local health department or agency, nursing facility, retirement facility, nursing home, home health care provider, any facility that performs laboratory or medical testing, pharmacy, or any similar institution, employer, or entity (my emphasis added).

The DOL doesn’t stop there. The regulation’s definition also includes any permanent or temporary institution, facility, location, or site where medical services are provided that are similar to such institutions.  This definition includes any individual employed by an entity that contracts with any of the above institutions, employers, or entities institutions to provide services or to maintain the operation of the facility.

Employees on furlough, laid off, or on a leave of absence are not eligible to take EPSL and FMLA+: The new rule clarifies that an employee may not take paid leave under the EPSL or FMLA+ if the employer does not have work for the employee (furlough), whether they are on other forms of leave, or have been terminated.

Reasons for EPSL

For EPSL, an employee can take up to ten days/two weeks of paid sick leave for any one of six reasons.  In its new rules, DOL had much to say about these reasons:

1. The Employee is Subject to a quarantine or isolation order

After the law was enacted, we presumed this provision would be limited in scope. After all, very few employees are themselves subject to an isolation order.  The new rules tease us by stating that a “federal, state or local isolation order” that might qualify as a reason for a leave includes a broad range of governmental orders, including orders to shelter in place or stay at home.

However, an employee may only take the leave when the employee would otherwise be able to perform the work or telework permitted by the employer had the order not been in place.  Note that if an employer’s business is shutdown as a result of an order, it is not required to provide paid leave to employees, because the employer  – not the employee – is the subject of the order to shut down.  In other words, EPSL and FMLA+ will not apply where an employer no longer has work for an employee.

Oh goodness! What the heck does this mean!?!  By now you’re screaming: Jeff, just tell me whether an employee can take EPSL or FMLA+ for a general shelter in place or business closure order!

To be honest, I’m still trying to process this one myself.  But let me point you to two examples the DOL gives in the preamble to the regulations which might give us a better idea of what’s going on here:

. . . if a coffee shop closes temporarily or indefinitely due to a downturn in business related to COVID-19, it would no longer have any work for its employees. A cashier previously employed at the coffee shop who is subject to a stay-at-home order would not be able to work even if he were not required to stay at home. As such, he may not take paid sick leave because his inability to work is not due to his need to comply with the stay-at-home order, but rather due to the closure of his place of employment.

This analysis holds even if the closure of the coffee shop was substantially caused by a stay-at-home order. If the coffee shop closed due to its customers being required to stay at home, the reason for the cashier being unable to work would be because those customers were subject to the stay-at-home order, not because the cashier himself was subject to the order. Similarly, if the order forced the coffee shop to close, the reason for the cashier being unable to work would be because the coffee shop was subject to the order, not because the cashier himself was subject to the order.

Here is an example of when a shelter in place order would provide for EPSL or FMLA+:

. . . if a law firm permits its lawyers to work from home, a lawyer would not be prevented from working by a stay-at-home order, and thus may not take paid sick leave as a result of being subject to that order. In this circumstance, the lawyer is able to telework even if she is required to use her own computer instead of her employer’s computer. But, she would not be able to telework in the event of a power outage or similar extenuating circumstance and would therefore be eligible for paid sick leave during the period of the power outage or extenuating circumstance due to the quarantine or isolation order.

So, is this where we have arrived — that the employee can take leave if the power goes out? If you’re scratching your head, that makes two of us. Bottom line: this covers very limited  circumstances, shelter in place orders are unlikely to support EPSL or FMLA+.

2. The Employee is advised by a health care provider to self-quarantine

DOL provides the roadmap for leave when the employee is advised to self-quarantine. In this situation, a health care provider must advise the employee to self-quarantine on a belief that one of the following apply:

a) the employee has COVID-19;

b) the employee may have COVID-19; or

c) the employee is particularly vulnerable to COVID-19.

Oh yeah, the employee in this situation also must be unable to work or telework.

3. The Employee is experiencing symptoms and seeking a medical diagnosis for COVID-19

The regulations clarify that an employee who experiences the symptoms of fever, dry cough, shortness of breath, or other COVID-19 symptoms identified by the CDC and is affirmatively taking steps to obtain a medical diagnosis, may be eligible for paid leave.  Both the symptoms and the step-taking are critical here.

Also included in the period of leave is time spent making, waiting for, or attending an appointment for a test for COVID-19.

4. The Employee is caring for an individual who has been quarantined or been advised to self-quarantine

Simply put, who’s the “individual” that the employee must care for?  The regulations tell us “individual” means either an immediate family member, roommate, or a person with whom the employee has a relationship and would be expected to care for the employee if the roles here were reversed.  So, someone who means a bit more to you than the guy at the end of the bar.

5. The Employee is caring for a child because of school, child care closures

Where the employee requests leave to care for a child whose school or place of care is closed, DOL adopts recently-issued IRS guidance by limiting EPSL and FMLA+ only to those situations where the employee must actually care for the child and no other suitable person (e.g., co-parents, co-guardians, or the usual childcare provider) is available to care for the child during the period. If another caretaker is available to care for the child, the employee is not entitled to leave.

6.  The Employee is experiencing any other substantially similar condition that may arise as designated by the Secretary of Health and Human Services

Know what DOL has to say about this reg? Nothing. Nada. Zip!

And I can’t blame the DOL, as I have no idea what this statutory provision means either.  We punt for now as we await further guidance.

How Much EPSL Can an Employee Take?

Full-Time Employees

Per the regulations, employees are “full” time and receive 80 paid sick leave hours in two situations:

First, employees are “full” time if their employer normally schedules them to work at least 40 hours each workweek.

Second, employees without a normal weekly schedule will be “full” time if the average number of workweek hours their employer schedules them to work (including leave hours they take) is at least 40 hours per workweek over the entire period of employment or the six-month period that ends when the employee takes paid sick leave, whichever is shorter.

Part-time Employees

Under the regulations, if you’re not full-time, you are considered “part” time. In the new rules, DOL creates a standard for employers to apply to determine how many EPSL hours they receive:

Standard schedule: Part-time employees with a normal weekly schedule receive an amount of EPSL that equals the total amount of hours worked in a two-week period. For example, if employees work 20 hours each week, they receive up to 40 hours under EPSL over the two-week period.

Wacky schedule: For employees who lack a normal weekly schedule, the DOL advises employers to use the total hours the employee worked during the six-month period (or the entire period of employment, if shorter) before taking leave, divide that by the number of calendar days in the period, then multiple the result by 14. For example, if an employee works 520 hours in a six-month period, that roughly equates to 2.857 hours per calendar day, so, multiplied by 14, the employee receives up to 40 hours of EPSL.

Quick note: if at the time of hiring, the employer and employee have an agreement concerning the average number of work hours each calendar day (few, if any, will), that daily number multiplied by 14 produces the amount of EPSL the employee is eligible to receive.

How Much FMLA+ Can an Employee Take?

In addition to EPSL, employees are entitled to take up to 12 weeks of FMLA leave for “a qualifying need related to a public health emergency.” This “qualifying need” is limited to circumstances where an employee is unable to work (or telework) to care for a minor child if the child’s school or place of child care has been closed or is unavailable.

As it forecast in its earlier Q&As, the DOL confirms in the regulations that FMLA+ cannot exceed a total of 12 weeks of leave during the applicable 12-month period. Any amount of FMLA “classic” leave an employee uses earlier in that same 12-month period reduces FMLA+ entitlement. For example, if during an applicable FMLA 12-month period an employee takes 4 weeks of FMLA “classic” leave, the employee has 8 weeks of FMLA+ leave left to use in that same period. Similarly, during a single FMLA 12-month period, an employee can use a combination of FMLA “classic” and FMLA+ leave, up to a maximum amount of 12 weeks.

If an employee exhausts all 12 workweeks of FMLA “classic” or FMLA+, the employee still can make use of any remaining EPSL leave that has not already been taken, in which case it is possible that the employee could end up taking 14 weeks (instead of 12).

Use of Intermittent Leave

Notably, the DOL significantly limits intermittent leave for EPSL and FMLA+. In an effort to limit the risk that an employee might spread COVID-19 to other employees, DOL limits the use of intermittent leave for those who are working onsite to two main conditions:

1) that the employee and employer agree to the use of intermittent leave; and

2) such use is limited to the employee’s need to care for a child whose school or place of care is closed, or where child care is unavailable.

In doing so, DOL slammed the door on the use of intermittent leave for any of the other five reasons under EPSL for employees working onsite.  Its reasoning is practical: where an employee is absent due to COVID-19 symptoms or diagnosis or is taking care of an individual in a similar predicament, it is not acceptable for the employee to take intermittent leave due to the “unacceptably high risk” that the employee might spread COVID-19 to other employees.  In these situations, DOL made clear that the employee must continue to take continuous paid sick leave each day until the employee either exhausts paid leave or no longer has a reason for leave from work.

In the case of telework, intermittent leave is available for employees who are taking EPSL or FMLA+, but again, only if the employer and employee can agree.  DOL contemplates that the employee and employer will “agree on an arrangements” for intermittent leave “that balance the needs of each teleworking employee with the needs of the employer’s business.”

The requirement that both the employer and employee agree raises a practical question: What if the employee is unwilling to agree to the intermittent leave arrangement proposed by an employer?

Substitution of Accrued Paid Leave and “Top Offs”

This is where the regulations get a bit confusing.

The statute requires that the employer allow the employee to first use sick leave provided for under this sick leave law, then decide to use any remaining accrued paid leave under an employer’s policy.  Per the explicit terms identified in the law, the employer cannot require the employee to use accrued leave under an employer policy first.

In its new rules, however, DOL clarified how accrued paid leave would interact with EPSL and FMLA+.

  • For the two weeks (up to 80 hours) of EPSL, the employee has the sole discretion to use EPSL or any accrued paid leave provided by the employer. The employer cannot dictate that accrued, employer-paid leave be substituted during this time.
  • However, for the initial two weeks of FMLA+, which is unpaid according to the FMLA+, the employee can elect, or the employer can require, the employee to use accrued paid leave (through an employer’s plan or policy). This means that an employee may be eligible to use EPSL during this time, and/or leave under the employer’s policy, or both to top off to 100% of their pay.  However, if the employee elects to substitute emergency paid sick leave for the first two weeks of emergency family and medical leave, an employer may not require the employee to first use another form of accrued paid leave.
  • For the remaining 10 weeks of FMLA+, if the employee is eligible due to school closures/childcare unavailability, the employer cannot require that an employee “top off” EPSL or FMLA+ with his or her own accrued paid leave unless the employee specifically agrees.  But note: The DOL’s FAQ #31 says the exact opposite, allowing employers to require that employees exhaust their accrued employer paid leave without the employee’s permission. Something has to give here: assuming that the regulations are correct, DOL will be required to update FAQ #31 in the day ahead to comport with the applicable regulations.

Employee Request to Take EPSL and FMLA+

Perhaps not surprisingly, the DOL outlines different employee notice requirements depending on the reason for leave. For employees needing leave for school closures/childcare unavailability, and where such leave is foreseeable, employees must provide notice as soon as is practicable (consistent with “classic” FMLA standards). On the other hand, when an employee needs leave for any other reason under EPSL, the standards loosen, and employers can only require employee notice after the first workday (or part of a workday) that an employee takes EPSL.

While many employers have policies requiring employees to make requests for various types of leave in writing, consistent with the spirit of recent case law under FMLA “classic,” oral notice of the initial need for leave is sufficient, as long as the employee provides enough information for the employer to determine it is an EPSL or FMLA+ qualifying reason for leave. However, nothing in the regulations prevents an employer from directing employees to then follow the employer’s usual and customary procedures from that point forward, and the DOL indicates that such expectations will typically be reasonable.

In any event, the DOL reminds employers that if an employee fails in some regard with respect to providing notice or supporting information or documentation, the employer should give the employee notice of the failure and an opportunity to correct the deficiency prior to denying the leave.

Employee Documentation to Substantiate Leave

In the regulations, the DOL tackles some of the documentation questions employers have been grappling with since the law’s enactment. Prior to being able to take EPSL or FMLA+, the employee must provide:

  1. the employee’s name
  2. the dates for which the employee requests leave
  3. the qualifying reason, and
  4. an oral or written statement that the employee is unable to work because of the qualifying reason.

The DOL also outlines what type of documentation or information employees must provide in support of various types of leave under EPSL/FMLA+:

  • Employee subject to a federal, state or local quarantine or isolation order related to COVID-19: the name of the governmental entity that issued the Order.
  • A health care provider advises an employee to self-quarantine due to concerns related to COVID-19: the name of the health care provider who advised the employee to self-quarantine.
  • Employee is caring for an individual who is subject to a quarantine or isolation order or an individual who has been advised by a health care provider to self-quarantine: either the name of the governmental entity that issued the Order to which the individual being cared for is subject, OR, the name of the health care provider who advised the individual being cared for to self-quarantine.
  • Employee is caring for a child whose school is closed or childcare is unavailable due to COVID-19 precautions: name of the child, name of the school, place of care or child care provider (each defined in the regulations) that has closed or become unavailable, and a representation that “no other suitable person will be caring for the child during the period” the employee is taking EPSL or FMLA+ for this reason.

There seems to be a theme within the rule that the DOL is permitting employers to require information, but perhaps not much actual documentation, particularly compared to FMLA “classic” documentation standards. The DOL then defers to the tax credit process through the IRS and states that employers may also request that an employee provide other documents in support of the FFCRA tax credits, though the DOL does not indicate further what such records may be. The DOL also confirms, as IRS guidance states, that an employer need not provide leave to employees who will not provide sufficient materials to support the tax credits.

What’s left to discuss?  Just a few more things . . .

DOL Poster and Employer’s Notice Requirements

Posting

The regulations do not contain significant, new employer notice requirements for the FFCRA, other than to align with its earlier Q&A, and require that employers post on their premises in conspicuous places the FFCRA’s paid leave provisions and information about how to file a complaint with the DOL for alleged violations of the law. The DOL refers to its model notice as being sufficient notice, as long as the employer either posts it in the workplace in conspicuous places, emails, direct mails, or posts it on the employer’s internal or external website. Employers can post this in a different format than the DOL’s model poster, as long as the content is accurate and readable. Given the current remote work realities of COVID-19 for many workers, employers should ensure that employees not actually reporting to the worksite each day receive the selected notice via one of the above remote methods. As noted above in this article, the regulations clarify that, regardless of whether a small employer chooses to exempt one or more employees, it still must post this general notice.

Notice Requirements

The DOL notes in the preamble to the regulations that this law does not require employers to provide employees seeking FMLA+ leave with the traditional FMLA notice of eligibility, rights and responsibilities, or written designation—but the agency also notes that employers may want to take advantage of their established practices for “classic” FMLA to send such notifications.

Editorial comment: Employers should prepare their own notices and forms and use them regularly. My friends, remember that proper documentation is one of the keys to compliance. It establishes that you have alerted employees of their rights and that you properly responded to their leave request.

Job Protection/Restoration

The regulations note that, upon return to work from EPSL or FMLA+, the employee has the right to be restored to the same or equivalent position, subject to certain limitations:

1. An employee is not protected from employment actions, such as layoffs, which would have affected the employee had they not taken leave; to deny restoration of employment, the employer must be able to show that the employee would not otherwise have been employed at the time reinstatement is requested; and

2. For FMLA+ leave only, an employer may deny job restoration to certain “key” employees (as defined under preexisting FMLA regulations), if denial of restoration is necessary to prevent substantial and grievous economic injury to the employer’s operations. Note, however, that this is a designation and option that employers must exercise only through very specific steps the FMLA outlines.

In addition, the regulations explain that employers that employ 24 or fewer employees may deny job restoration under FMLA+ (but not EPSL) where:

1. the employee took leave to care for child whose school or childcare facility was closed for COVID-19 reasons;

2. the employee’s position no longer exists due to economic conditions or changes in operating conditions caused by a public health emergency;

3. the employer makes reasonable efforts to restore the employee to an equivalent position; and

4. where such reasonable efforts fail, the employer makes reasonable efforts to contact the employee for a one-year period if an equivalent position becomes available. The one-year period begins on the earlier of the date the employee’s leave concludes or the date 12 weeks after the employee’s leave began.

Small (Fewer than 50 Employees) Business Exemption 

As we discussed in our Littler alert yesterday, the regulations provide that an employer, including a religious or nonprofit organization, with 49 or fewer employees, is exempt from providing FFCRA leave for child-care purposes when allowing such leave would jeopardize the viability of the business as a going concern. However, given that language in the regulations does specifically reference the exemption with respect to leave that is requested, we caution that employers should be judicious in applying the exemption, and prepare themselves to address exemption decisions with specific reference to employees and specific leave requests rather than a blanket decision on day one, or a decision that it simply takes the position that it is “exempt.”

To use this exemption, an authorized officer of the employer must determine that:

  1. The leave requested would result in the small business’s expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity;
  1. The absence of the employee or employees requesting leave would entail a substantial risk to the financial health or operational capabilities of the business because of their specialized skills, knowledge of the business, or responsibilities; or
  1. There are no 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 provided by the employee or employees requesting leave, and these labor or services are needed for the small business to operate at a minimal capacity.

To elect this small business exemption, the employer must document that an authorized officer made this determination. The DOL advises that employers should retain those records in their files.  Finally, even where a small employer chooses to exempt one or more employees, it still must display the mandatory poster.

 

* This article borrows heavily from an alert that I co-authored with my Littler colleagues Alexis Knapp, Jim Paretti and Sebastian Chilco, with whom I’ve been in the trenches over the past several weeks, as together we have tackled EPSL and FMLA+ and every little morsel the DOL has tossed our way. I have learned much from them.

Late yesterday, the Internal Revenue Service took a hard line on an employee’s need for emergency paid sick leave (EPSL) and emergency paid FMLA (FMLA+), taking the position that only one caretaker can take leave for a child whose school or childcare is closed.  Moreover, if the child is over 14 years old, the parent must explain the special circumstances requiring the employee to provide care.

This position is outlined in detailed FAQs highlighting the documentation employers can require to substantiate an employee’s need for EPSL and FMLA+. The IRS also detailed the documents that must be maintained to obtain tax credits for EPSL and FMLA+ payments.

Employee Request for Paid Leave

FAQ #44 of the IRS guidance is key — learn it, live it, love it.

The process for requesting EPSL or FMLA+ starts – as a leave request always does – with the employee. In its guidance, the IRS made clear that the employee must first submit a written request for leave that includes:

  1. The employee’s name;
  2. The date or dates for which leave is requested;
  3. A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason; and
  4. A statement that the employee is unable to work, including by means of telework, for such reason.

If a Case of Quarantine, What Must the Employee Statement Provide?

In the case of a leave request based on a quarantine order or self-quarantine advice, the statement from the employee should include:

  1. The name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and,
  2. If the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.

If a Case a Child’s School or Child Care is Closed, What Must the Statement Provide?

In the case of a leave request based on a school closing or child care provider unavailability, the statement from the employee should include:

  1. The name and age of the child (or children) to be cared for,
  2. The name of the school that has closed or place of care that is unavailable, and
  3. A representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave and,
  4. With respect to the employee’s inability to work or telework because of a need to provide care for a child older than fourteen during daylight hours, a statement that special circumstances exist requiring the employee to provide care.

As highlighted in Nos. 3 and 4 directly above, the IRS takes the position that, if the employee wants to take EPSL and FMLA+, the employee alone must be providing care to the child, making clear that leave would otherwise be unavailable if both parents or another individual is present to care for the child.  Also, in the case of a 15- to 17-year old child, the employee must identify “special circumstances” requiring the employee to provide care. If the employee cannot do so, they cannot take EPSL or FMLA+.

What Additional Records Must an Employer Retain to Substantiate EPSL or FMLA+ and to Obtain the Tax Credit?

To establish that an employee legitimately took EPSL or FMLA+ and the right to a tax credit, employers must create and maintainiiup records that include the following information:

  1. Documentation to show how the employer determined the amount of qualified sick and family leave wages paid to employees that are eligible for the credit, including records of work, telework and qualified sick leave and qualified family leave.
  2. Documentation to show how the employer determined the amount of qualified health plan expenses that the employer allocated to wages. See FAQ 31 (“Determining the Amount of Allocable Qualified Health Plan Expenses”) for methods to compute this allocation.
  3. Copies of any completed Forms 7200, Advance of Employer Credits Due To COVID-19, that the employer submitted to the IRS.
  4. Copies of the completed Forms 941, Employer’s Quarterly Federal Tax Return, that the employer submitted to the IRS (or, for employers that use third party payers to meet their employment tax obligations, records of information provided to the third party payer regarding the employer’s entitlement to the credit claimed on Form 941).

How Long Should an Employer Maintain these Records?

The IRS confirms in its FAQs that an Employer should keep all records of employment taxes for at least four years after the date the tax becomes due or is paid, whichever comes later.  These should be available for IRS review.

Who wants Part III? Come on, you know you’ve been craving this all weekend.

More FAQs. 

It’s like winning a cake eating contest, and the prize is . . . more cake.

Late Saturday night, the Department of Labor issued a third round of Q&As (FAQs #38-59) aimed at helping employers administer emergency paid sick leave (EPSL) and paid FMLA leave (FMLA+) as part of the Families First Coronavirus Response Act (FFCRA) (pdf), which as of April 1, 2020 will provide relief to American workers in the wake of the coronavirus pandemic.

In this latest round of FAQs, DOL gave critical guidance that employers need to know, including the following:

  • Employers under 50 employees (which currently are not covered by the FMLA) are exempt from the FMLA+ and from one provision of EPSL, but not all of the provisions (FAQ # 58-59)
  • Employees can take no more than 12 weeks of FMLA, which includes any leave taken under FMLA+ (FAQ # 44).
  • BUT two Weeks of EPSL could be used in addition to the 12 weeks of FMLA+ (FAQ # 45).
  • Health Care Providers and Emergency Responders (and pretty much anyone who works with them) are excluded from protection under the EPSL and FMLA+ (FAQ #56-57)
  • Small Employers (24 or fewer Employees) Get Some Relief When it Comes to Restoration (FAQ #

Small Business Exemption Clarified—Employers with Fewer than 50 Employees May Be Exempt from FMLA+, and EPSL #5 (for School Closures/Childcare)—but NOT from other EPSL Reasons 1, 2, 3, 4 or 6 (FAQ #58-59)

For the first time, DOL gave smaller employers more clarity on how they would be exempt from the new law. As we noted in our Littler alert issued earlier today, DOL has clarified that small employers (those with fewer than 50 employees) – including religious or nonprofit organizations – may claim an exemption under FMLA+ and EPSL if the employer’s authorized officer determines one of the following applies:

  • Providing FMLA+ and EPSL reasons #5 leave (school closures and child care unavailability) would cause the business’s expenses and financial obligations to exceeding its revenues and cause the business to cease operating at a minimal capacity;
  • The employee’s absence would entail a substantial risk to the business’s financial health or operational capabilities because of specialized skills, knowledge of the business, or responsibilities, the employee possesses; or
  • There are insufficient workers who are able, willing, and qualified to perform the labor or services provided by the employee(s) requesting child-care leave, and these labor or services are needed for the business to operate at a minimal capacity.

VERY IMPORTANT CAVEAT: DOL indicates that school closures/child care reasons for FFCRA leave (which is reason #5 for EPSL leave and the only reason FMLA+ is available) are the ONLY reasons for which this exemption is available (if one of the above criteria are met).

Naturally, this means that smaller employers with fewer than 50 employees – even those who can claim this exemption – are NOT exempt from providing EPSL for reasons #1, 2, 3, 4 and 6 (i.e., the medical/family care related reasons for EPSL).

As if There was Any Doubt, an Employee Can Take No More Than 12 Weeks of FMLA (FAQ #44-45)

One of the remaining questions being tossed around since passage of FFCRA is whether the FMLA+ requires an additional 12 weeks on top of the 12 weeks already available under FMLA classic.

The DOL shut the door on any scuttlebutt that this new entitlement is anything more than 12 weeks MAX.  In a comment directly intended for American workers, here’s DOL’s take:

. . . your eligibility for expanded family and medical leave depends on how much leave you have already taken during the 12-month period that your employer uses for FMLA leave. You may take a total of 12 workweeks for FMLA or expanded family and medical leave reasons during a 12-month period. If you have taken some, but not all, 12 workweeks of your leave under FMLA during the current 12-month period determined by your employer, you may take the remaining portion of leave available. If you have already taken 12 workweeks of FMLA leave during this 12-month period, you may not take additional expanded family and medical leave.  (My emphasis)

For example, as the DOL points out, assume an employee took 2 weeks of FMLA classic leave in January 2020 to recover from a surgical procedure. Since FMLA+ is a type of FMLA leave, the DOL confirms that the employee “would be entitled to take up to 10 weeks of expanded family and medical leave, rather than 12 weeks.” And any leave taken under FMLA+ would count against the employee’s entitlement to the entire bucket of FMLA leave.

Note: Although the DOL didn’t specifically say it, we are working with the assumption that the 12-month FMLA period (aka the “FMLA year”) is the same 12-month period the employer has previously chosen and regularly maintained (e.g., rolling year, look forward year, calendar year, fixed year).

But EPSL Could Be Used to Lengthen the Overall Entitlement to 14 Weeks (FAQ #45)

In not so many words, the DOL points out in its latest FAQs that the two weeks of EPSL could be used in addition to the 12 weeks of FMLA+.  First, here’s what the DOL says, and then I will explain:

. . . you are entitled to paid sick leave under the Emergency Paid Sick Leave Act regardless of how much leave you have taken under the FMLA. Paid sick leave is not a form of FMLA leave and therefore does not count toward the 12 workweeks in the 12-month period cap. But please note that if you take paid sick leave concurrently with the first two weeks of expanded family and medical leave, which may otherwise be unpaid, then those two weeks do count towards the 12 workweeks in the 12-month period.

What the heck does this mean?

Under at least two scenarios, an employee might be able to use 14 weeks of FFCRA leave:

  1. First, an employee can use 80 hours (or the proportionate equivalent) of EPSL for non-child-care purposes (as allowed under EPSL). Assuming the employee has not used any FMLA leave (“classic” or “plus”) during the applicable FMLA 12-month period, the employee can then take up to 12 weeks of FMLA+ child-care leave.
  2. Second, during the initial unpaid 10-day period of FMLA+ leave (i.e., 2 weeks), the employee can use pre-existing non-FFCRA employer-provided benefits instead of EPST benefits (i.e., 2 weeks). The employee gets up to another 10 weeks of FMLA+ paid child-care leave (2 weeks + 10 weeks = 12 weeks). After that, assuming no EPST was used to date, the employee could use EPST child-care leave for an additional two weeks (2 weeks + 10 weeks + 2 weeks = 14 weeks). [H/T to my colleague Sebastian Chilco for clarifying this little nugget for me.]

EPSL and FMLA+ is in Addition to Any State or Local Leave the Employee Has Earned (FAQ #46)

We kinda knew this already, but DOL thought it worth mentioning – any leave under EPSL and FMLA+ is in addition to any other forms of sick/personal leave the employee has earned under the increasing number of state and local paid leave laws and ordinances. The new federal paid leave law does not touch or otherwise preempt these other leave entitlements, which means the employee’s actual leave entitlement could outstrip the 12 (or 14 weeks) allowed under EPSL and FMLA+.

Full-time and Part-Time Employees Now are Defined, which will Affect How Much You Pay Them (FAQ #48-49)

In its FAQs, the DOL clearly defined who is a full-time and who is a part-time employee under the EPSL.  Why is this important? Keep in mind that the EPSL states that full-time employees receive no more than 80 hours of pay for EPSL, and part-time employees receive the number of hours they normally work during a two-week period.

In its latest guidance, the DOL makes clear that an employee is “full” time if their employer normally schedules them to work 40 or more hours per week. An employee who is not “full” time is “part” time, and that employee receives a number of EPSL hours equivalent to the number of hours the employee works on average over a 2-week period.

DOL reminds employers that under FFCRA, FMLA+ “does not distinguish between full- and part-time employees, but the number of hours an employee normally works each week will affect the amount of pay the employee is eligible to receive.”

Health Care Providers/Emergency Responders are Excluded from Protection (FAQ #56-57)

In a nod to those who employ health care providers and emergency responders, the DOL made clear that employers can elect to exclude from coverage—which includes “anyone employed at any doctor’s office, hospital, health care center, clinic, post-secondary educational institution offering health care instruction, medical school, local health department or agency, nursing facility, retirement facility, nursing home, home health care provider, any facility that performs laboratory or medical testing, pharmacy, or any similar institution, employer, or entity. This includes any permanent or temporary institution, facility, location, or site where medical services are provided that are similar to such institutions.” (emphasis added).

The definition also includes “any individual employed by an entity that contracts with any of the above institutions, employers, or entities institutions to provide services or to maintain the operation of the facility. This also includes anyone employed by any entity that provides medical services, produces medical products, or is otherwise involved in the making of COVID-19 related medical equipment, tests, drugs, vaccines, diagnostic vehicles, or treatments. This also includes any individual that the highest official of a state or territory, including the District of Columbia, determines is a health care provider necessary for that state’s or territory’s or the District of Columbia’s response to COVID-19.”

To help minimize the spread of COVID-19, DOL encourages employers to be judicious when applying its new definitions for those who qualify as a “health care provider” or “emergency responder” for whom they are electing not to provide leave.

Small Employers (24 or fewer Employees) Get Some Relief When it Comes to Restoration (FAQ #43)

Taking the lead from the statute itself, DOL offers small employers (24 or fewer employees) a lifeline:  these employers can deny the employee’s return to the job so long as all four of the following hardship conditions exist:

  • the position no longer exists due to economic or operating conditions that affect employment and due to COVID-19 related reasons during the period of FMLA+ leave;
  • the employer can show it made reasonable efforts to restore the employee to the same or an equivalent position;
  • the employer makes reasonable efforts to contact this same employee if an equivalent position becomes available; and
  • the employer continues to make reasonable efforts to contact the employee for one year beginning either on the date the leave related to COVID-19 reasons concludes or the date 12 weeks after FMLA+ leave began, whichever is earlier.

Note: These employers also can deny restoration to an FMLA “key” employee (salaried employee who is among the highest paid 10% of all the employer’s employees within 75 miles of the employee’s worksite).

Dispute Resolution (FAQ #41-42)

To the agency’s credit, the DOL strongly encourages any employee who believes that the employer is improperly withholding paid sick or FMLA leave benefits to them to work out the differences first with their employer. This is not a tactic often recommended by a federal agency, which typically resorts to “come to us, and we’ll go hammer them for you . . .” [Well, not really, but kinda.]

Nevertheless, kudos to the DOL for attempting to bring some sensibility and calm to an otherwise frenetic time in which we live.

DOL Walks Back its Previous Guidance regarding Documentation of Qualifying Need for Leave

Finally, the DOL also took a red pen to some of its previous guidance.

Notably, the DOL eliminated much of its previous discussion regarding the specific types of documentation to support a leave request under EPSL and FMLA+, pointing employers instead to applicable IRS forms and information. However, the IRS has yet to publish guidance for employers on this issue.

For school closures and childcare-related need for leave, the DOL indicates that additional documentation may be required beyond what “conventional” FMLA allows—such as a notification of such school closure, etc. But all indications seem to suggest that for medically necessary reasons for COVID-19 (EPSL reasons #1, 2, 3, 4, and 6), employers may still request appropriate supporting documentation, although given current realities, employers may find they need to, as a practical matter, relax traditional documentation standards they might impose under normal circumstances. Additionally, the DOL now says employers need not provide leave if employees do not provide materials sufficient to support a tax credit.

What did I miss? I welcome your feedback.  In the meantime, let’s stay vigilant and stay safe, my friends.

Hat tip: Much of this post is taken from the collective work of several of my colleagues and me (Alexis Knapp, Jim Paretti, Sebastian Chilco and Mike Lotito) in a post we published today.

For the record, I’m not getting much sleep this week, thanks to the Department of Labor. But it’s evident the DOL isn’t getting much sleep either.

Late last evening, the DOL issued a second round of Q&As (FAQs #15-37) aimed at helping employers administer emergency paid sick leave (EPSL) and paid FMLA leave (FMLA+) as part of the Families First Coronavirus Response Act (pdf), which provides initial relief to American workers in the wake of the coronavirus pandemic.

The first Q&A issued on Tuesday, March 24 focused largely on employer coverage and pay calculations.

Last night, however, the DOL delved into even meatier issues.  In a nutshell, DOL generally confirmed the following:

  • Employees can be required to submit appropriate documentation to verify their need for EPSL and FMLA+. Documentation includes quarantine or isolation orders, doctor’s recommendations, or a notice of a school or place of care closure (FAQ # 16).
  • EPSL and FMLA+ generally must be taken in full-day increments (FAQ # 21).
  • EPSL and FMLA+ can only be used intermittently for child care reasons, and only then with employer consent (FAQs #20-22).
  • Shelter in Place and Business Closure Orders Likely Do Not Support the Need for Leave (FAQ #27).
  • Employees are not eligible for EPSL or FMLA+ during furloughs or temporary layoffs (FAQs #23-28).
  • Employees are not entitled to “top off” their FFCRA payments with accrued paid time off to get to 100% of pay unless the employer agrees (FAQ #31).
  • Employers cannot require employees to “top off” their FFCRA payments with accrued paid time off to get to 100% of pay unless the employee agrees (FAQs #32-33).

Let’s go through these nuggets one at a time:

Required Documentation (FAQ #16)

EPSL

For EPSL, the DOL advised that the employer must require the employee to provide “appropriate documentation” identifying the reason for requesting leave, a statement that the employee is unable to work (including telework) for that reason, and the date(s) for which leave is requested.

According to the DOL, appropriate documentation includes:

  • The source of any quarantine or isolation order and may include a copy of the Federal, State or local quarantine or isolation order related to COVID-19 applicable to the employee.
  • The name of the health care provider who has advised the employee to self-quarantine, including, for example, written documentation by a health care provider advising the employee to self-quarantine due to concerns related to COVID-19.

EPSL and FMLA+

If an employee takes EPSL and/or FMLA+ to care for his or her child whose school or place of care is closed due to COVID-19, employees again must provide “appropriate documentation” in support of leave. Examples include:

  • A notice that has been posted on a government, school, or day care website, or published in a newspaper; or
  • An email from an employee or official of the school, place of care, or child care provider

Retaining the documentation: The DOL advises employers to retain the documentation if they intend to claim a tax credit under the FFCRA for the paid leave provided under EPSL or FMLA+.

Telework Still a Bit Murky (FAQs #17-18)

The DOL indicates that, on one hand, an employee can telework when the employer permits or allows the employee to perform work while he is at home or at a location other than the normal workplace. On the other hand, the agency also finds that an employee is unable to telework if the employer has work for the employee but the employee is unable to perform the work because of one of the COVID-19 reasons set forth in the EPSL or FMLA+ prevents the employee from being able to perform that work.

Left in the balance, however, is precisely who is responsible for deciding whether the employee can telework or not on any given occasion. The DOL appears to encourage this to be a joint decision between employee or employer.  As DOL puts it bluntly in FAQ #18:

If you and your employer agree that you will work your normal number of hours, but outside of your normally scheduled hours (for instance early in the morning or late at night), then you are able to work and leave is not necessary unless a COVID-19 qualifying reason prevents you from working that schedule.

Increments of Leave (FAQ #21)

As the default rule, DOL takes the position that EPSL and FMLA+ generally must be taken in full-day increments, and once the employee begins taking paid leave under EPSL or FMLA+, the employee must continue to take paid sick leave each day until the employee either: 1) uses the full amount of paid sick leave; or 2) no longer has a qualifying reason for taking EPSL or FMLA+. Notably, DOL’s motivation to insist on full-day increments is based on the intent of EPSL and FMLA+, which is to provide “such paid sick leave as necessary to keep [the employee] from spreading the virus to others.”

Intermittent Leave is Limited (FAQs # 20-22)

As highlighted in an article I drafted with my Littler colleagues earlier today, the DOL provides generally that employees and employers may agree to intermittent and incremental use of emergency paid sick leave (EPSL) and emergency paid Family and Medical Leave benefits (FMLA+), but then seems to divide the remaining guidance into two situations—whether the employee is teleworking, or working onsite.

For employees who are teleworking, whether taking time off under EPSL or FMLA+, employer and employee may agree to intermittent leave for any of the covered reasons.  But for employees who are working on the employer’s premises, intermittent EPSL is only permitted for employees who are taking leave for school closures or childcare unavailability (again, only if the employer agrees).  Employees taking EPSL for one of the other five reasons under the Act must take such leave in full-day increments (because the intent of the FFCRA is to prevent employees who may be ill or caring for those who are ill from possibly spreading the virus to other individuals in the workplace).

Shelter in Place and Business Closure Orders Likely Do Not Support the Need for Leave (FAQ #27)

Although it didn’t carve out a specific question for these types of orders, the DOL appears ready to deny EPSL to those covered by sweeping shelter in place and business closure orders being issued at the state and local levels.  See its commentary in FAQ #27:

If, prior to the FFCRA’s effective date, your employer sent you home and stops paying you because it does not have work for you to do, you will not get paid sick leave or expanded family and medical leave but you may be eligible for unemployment insurance benefits. This is true whether your employer closes your worksite for lack of business or because it is required to close pursuant to a Federal, State, or local directive.

Similarly, in FAQ #28, the DOL states:

If your employer reduces your work hours because it does not have work for you to perform, you may not use paid sick leave or expanded family and medical leave for the hours that you are no longer scheduled to work.

This language seems pretty clear in denying EPSL to those covered by shelter in place and business closure orders at the state and local level.

Paid Leave not Available for Furloughs and Temporary Layoffs (FAQs #23-28)

If an employee’s work site closes (whether the employer voluntarily closes or does so as a result of a state or local order), DOL now makes clear that employees cannot take leave under EPSL or FMLA+.

Period.

Simply put, EPSL or FMLA+ is not available to an employee on furlough, temporary layoff, reduced work hours, or who actually has been laid off. It does not matter whether: 1) the closure occurs before or after the law takes effect on April 1, 2020; 2) an employee is on leave when closure occurs; 3) an employer furloughs an employee; or 4) the work site temporarily closes and the employer says it will reopen in the future.

Case closed.  In these situations, the only pay available to the employee is unemployment compensation benefits.

“Topping Off” Paid Leave is Prohibited unless Both Sides Agree (FAQs #31-33)

One of the questions remaining after EPSL and FMLA+ were enacted was how an employee’s accrued paid leave through an employer’s policies would be treated along with EPSL and FMLA+.  The DOL put this question to bed.

Here are three key rules to keep in mind as confirmed by the DOL:

  • For the two weeks (up to 80 hours) of EPSL, the employee has the sole discretion to use EPSL or any accrued paid leave through the employer. The employer cannot dictate what leave is used during this period.
  • The employee cannot “top off” EPSL or FMLA+ with his or her own accrued paid leave (through an employer’s plan or policy) unless the employer specifically agrees.
  • Conversely, the employer cannot require that an employee “top off” EPSL or FMLA+ with his or her own accrued paid leave (through an employer’s plan or policy) unless the employee specifically agrees.

“Top off” in this context means that the employee would use 1/3 of a paid leave day to “top off” any leave that is provided at 2/3rds pay under EPSL or FMLA+ so that the employee would receive 100% of their regular salary.

A Word about Group Health Benefits

Finally, per DOL, an employee’s group health benefits must be maintained on the same terms for FMLA+ as if the employee had continued working.  Also, if an employee maintains family coverage, an employer must maintain this coverage, too.

For EPSL, health benefits also must be maintained. DOL further notes that employers “cannot establish an eligibility rule or set an individual’s premium or contribution rate based on whether the employee is actively at work unless an absence from work due to any health fact is treated as being actively at work for plan or health insurance coverage purposes.”

What’s Left to Be Answered? There still is much to be addressed by DOL. For starters:

  • It’s still not clear from yesterday’s guidance who gets to make the ultimate call on whether the employee can telework and what happens if/when the employee objects to telework.  We could use more guidance there.
  • What rules will DOL apply to exempt small businesses with fewer than 50 employees when the law’s requirements would jeopardize the viability of the business?
  • Will DOL give guidance to employers with fewer than 25 employees as to how they comply when they cannot return an employee to an equivalent position.

For now, though, with the DOL’s pronouncements about intermittent leave, furloughs, and topping off practices, employers will generally be pleased with this second round of FAQs.

Thanks to those who attended my webinar on Monday with my Littler colleagues Alexis Knapp and Jim Paretti on “Practical Issues for Employers in Navigating the New Federal Emergency Paid FMLA and Sick Leave Mandates.” A link to access the recording and PowerPoint slides can be found here.

To the nearly 14,000 people who registered for the webinar, thank you.  To those who missed it, you still have time to access the recording.

In particular, we covered key issues you need to be aware of as you begin to administer paid sick leave (EPSL) and paid FMLA (FMLA+). During the webinar, we addressed a host of issues, including the following:

  • When is this law effective? Ok, I acknowledge that this is the only issue we got wrong during the webinar.  Leading up to webinar, everyone and their brother were banking on the law taking effect on April 2, 2020, which was 15 days after the president signed the bill. As it turns out, DOL decided to make the law effective on April 1, 2020, as noted in the DOL guidance issued yesterday.  So we were off by one day, not bad.
  • How do employers calculate numbers of employees to determine whether they are covered by EPSL and FMLA+?  As we know from the law itself, the EPSL and FMLA+ apply to a private-sector employer with 499 or fewer employees.  During the webinar, we outlined how you should calculate, what employees you should include in the calculation, and how you address multiple, related entities under your corporate umbrella.  It is worth noting that we received guidance yesterday from the Department of Labor on these issues, which I analyzed yesterday.
  • Does a shelter in place or business closure order serve as a basis for an employee to take paid sick leave?  We explained our concerns about whether the new statute actually provides for leave in these situations. In fact, it’s pretty clear that the law doesn’t provide leave for individuals impacted by these orders. At the same time, we outlined how the DOL still may find a way to cover individuals in these situations, given that the “spirit” of the law may very cover these individuals.
  • May a terminated employee or furloughed employee receive paid leave under this new law? No, and likely no. Listen to the webinar for our reasoning why!
  • May an employee take EPSL and FMLA+ intermittently? Given the silence of the new law regarding intermittent leave, as well as the removal of language in earlier versions that required leave to be used at once, it appears as though the new law provides for intermittent and reduced schedule leave.
  • How do EPSL and FMLA+ interact with state/local leave laws?  In short, this new federal paid leave is in addition to state/local leave law.  We explain our rationale in the webinar.

We covered these critical issues and more.  Please access our recording here.

Other Resources for Employers during this Pandemic

At Littler, we have assembled over 100 attorneys who have spent every waking hour over the past several weeks advising employers on how they address very difficult workplace issues as a result of the coronavirus.  We encourage you to lean on us for assistance to do well by your employees and weather this storm.

Here are a few Littler resources I recommend you keep close by in the weeks and months ahead:

  1. Our Littler Coronavirus resource page, which contains employer FAQs on dealing with the pandemic, employer action items, specific guidance for dealing with the pandemic around the world (in the event you have international operations) and links to all our webinars and employer tools regarding the pandemic.
  2. Our compilation of all the orders requiring shelter at home and business closures
  3. How to properly handle furloughs as a response to the pandemic
  4. Wage and Hour Implications of Employer Responses to the Coronavirus
  5. Coronavirus (COVID-19) Employer FAQs
  6. Recording of my March 24, 2020 webinar on best practice for implementing the new federal paid sick leave and paid FMLA law

Late yesterday afternoon, the Department of Labor issued an initial question and answer guidance aimed at helping employers administer emergency paid sick leave (EPSL) and paid FMLA leave (FMLA+) as part of the Families First Coronavirus Response Act (pdf), which aims to provide initial relief to American workers in the wake of the coronavirus pandemic.  (We covered this new law in a webinar yesterday, the recording of which you can access here.)

Among the key questions answered in the DOL’s Q&A, the agency set the effective date of the new law, addressed which (and when) employees should be included in the calculation to determine employer coverage, and outlined how to calculate the employee’s regular rate of pay when providing EPSL and FMLA+.

Here are the highlights:

Effective date of the new law: Is this some April fools trick?  Although we all anticipated the new law to take effect on April 2, 2020 (i.e., 15 days after President Trump signed the legislation), the DOL set the effective date as April 1, 2020, which is 14 days after enactment.  Go figure, but we’ll get over it.

According to the statute, the law expires on December 31, 2020.

Employer Coverage:  As we know from the law itself, it applies to a private-sector employer with 499 or fewer employees. Perhaps the most notable (and helpful) portion of the guidance is information on how employers calculate whether they fall under that employee threshold.

When does the employer calculate?  The Q&A makes clear that an employer should calculate its total head count each time an employee’s leave is to be taken.  As difficult as this may be for employers to track, DOL was left precious little leeway by Congress on how best to determine employer coverage.  But it nevertheless presents the dilemma that an employer will dip above and below the 500-line at any given time.  Think about it: Johnny seeks leave on a Monday when the Company has 505 employees (he’s out of luck), but one week later, Susie requests leave at a time when the Company dips  to 499 employees (she’s in luck).  At a minimum, it surely will create some awkward situations.

Which employees should be counted?  The Q&A states that employers should count:

  • Full-time and part-time employees (no independent contractors are counted)
  • Only those employees within the United States (as the FMLA does not apply outside the United States and its territories)
  • Employees on leave
  • Temporary employees who are jointly employed by the employer and another company (regardless of whether the jointly-employed employees are maintained on only one employer’s payroll)
  • Day laborers supplied by a temporary agency (regardless of whether the employer or the temporary agency or the client firm if there is a continuing employment relationship).

Are related businesses aggregated to determine total head count?  Last night, several of my Littler colleagues and I published an analysis of this issue, which still is a bit amorphous even after the Q&A.  We see the DOL’s guidance this way:

The guidance states that typically, a corporation (including its separate establishments or divisions) will be considered a single employer and all of its employees must each be counted towards the employee threshold for that single corporation.  Where a corporation has an ownership interest in another corporation, the two corporations are still typically separate employers unless they are joint employers under the FLSA with respect to certain employees.  If two entities are found to be joint employers, all of their common employees must be counted in determining whether EPSL and FMLA+ leave must be provided.

In addition, the DOL’s Q&As adopt the integrated employer test under the Family and Medical Leave Act of 1993 (FMLA) to determine whether two or more entities are separate, or combined, for FMLA+ purposes.  Those factors under the FMLA include common management, interrelation between operations, centralized control of labor relations, and degree of common ownership/control. See 29 CFR 825.104(c)(2).  If two entities constitute an integrated employer under the FMLA, then employees of all entities making up the integrated employer will be counted in determining employer coverage for purposes of FMLA+ requirements.

Regular Rate Confirmed, Overtime must be Counted as Part of Pay

The Q&A makes clear that employers must pay an employee for hours the employee would have been normally scheduled to work.  However, the DOL confirmed what the law indicates  -that EPSL benefits are capped at 80 hours total over a two-week period.  The guidance also notes, by way of example, that an employee who is scheduled to work 50 hours a week may take 50 hours of paid sick leave in the first week and only30 hours of paid sick leave in the second week because of the 80-hour cap.

Notably, the DOL confirmed also that the payment made to the employee “does not need to include” a premium for overtime hours under either the EPSL or FMLA+.

Leave Given Prior to Effective Date of Law Cannot be Credited Later

As expected, the Q&A confirms that EPSL and FMLA+ benefits are effective beginning on the April 1 effective date.  As a result, any paid leave provided before April 1 will not count towards the new requirements and this gratuitous leave will not be eligible for the tax credits available under the law.

12 Weeks of Leave – Max!

In response to its question about how the EPSL and FMLA+ interact with each other, the DOL also confirmed that an employee “may be eligible for both types of leave, but only for a total of twelve weeks of paid leave.”  (My emphasis)  This clears up any ambiguity as to whether an employee might somehow take more than 12 weeks of leave between EPSL and FMLA+.

After passage last week of the Emergency paid sick leave and paid FMLA law, employers have been clamoring for guidance on the timing of reimbursement by the federal government for any paid leave they provide their employees after the law goes into effect on April 2, 2020. In fact, many employers have had to make difficult furlough and termination decisions worried about whether they would even have the cash flow to cover any paid leave mandates while waiting months, even a year, before the feds reimburse them.

Late Friday, the Internal Revenue Service and Department of Labor issued an announcement on this very critical question.  In the announcement, the DOL also made it clear it would not bring an enforcement action against employers for any violations within the first 30 days the law is in effect so long as the employer is acting in good faith to comply.

Here is my analysis of this latest information (and keep in mind we will cover these issues in greater detail during our Tuesday webinar):

IRS Guidance on Reimbursement of Paid Leave Provided by Employers

As you likely are aware by now, the new law provides employees (at employers with fewer than 500 employees) paid sick leave and paid FMLA leave for COVID-19 related reasons but also made clear that this paid leave would be 100% refundable to employers providing it.  (I explain these requirements in detail here.)

As written, the law simply was not realistic or workable as to employer tax credits, since the employer would be reimbursed at some later date — some weeks, months or even a year later — after the coronavirus damage had already been done.

In Friday’s guidance, however, the IRS made clear that employers would be able to recoup these payments immediately by keeping a portion of the deposit it otherwise would pay as part of their employees’ federal, social security and Medicare taxes.

This is welcome news.  

Here’s how the IRS explains how you will recoup this money immediately:

When employers pay their employees, they are required to withhold from their employees’ paychecks federal income taxes and the employees’ share of Social Security and Medicare taxes. The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the IRS.

Under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS.

The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.

If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week.

What does this mean?  In a nutshell, it means that any taxes held in escrow for payment on federal, social security and Medicare taxes now could be used to pay employees taking paid leave under the law effective April 2.  Notably, this would allow employers to draw funds from the payroll and income tax they withhold from or pay on behalf of all employees and not just those to whom they must provide paid leave under the new statute.

Examples of How You’ll Be Reimbursed Immediately

In its announcement, the IRS gave examples of its guidance above:

If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.

If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000.

Meanwhile, the DOL Will Not Bust You for Non-Compliance — Well, for At least Not for 30 Days

Although the details presumably will be announced this  week or the next, the DOL clarified in the same announcement that it would be “issuing a temporary non-enforcement policy that provides a period of time for employers to come into compliance with the Act. Under this policy, Labor will not bring an enforcement action against any employer for violations of the Act so long as the employer has acted reasonably and in good faith to comply with the Act. Labor will instead focus on compliance assistance during the 30-day period.”

What does “good faith” mean?  DOL says this:

For purposes of this non-enforcement position, “good faith” exists when violations are remedied and the employee is made whole as soon as practicable by the employer, the violations were not willful, and the Department receives a written commitment from the employer to comply with the Act in the future.

Well, a small sigh of relief.  And some hope we can cling to for now…

For guidance on these above issues and more, please sign up for our complimentary webinar on the new paid sick leave and paid FMLA leave law this Tuesday, March 24, 2020.

When:  This Tuesday, March 24, 2020 (11:00 a.m. to 12:30 p.m. central time)

Online registration: Click here

On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act, which aims to provide initial relief to American workers of certain covered employers in the wake of the coronavirus pandemic.  This new law requires covered employers to provide emergency paid leave in the form of a new mandatory paid sick leave benefit, and expanded, paid leave under the FMLA.

Targeted for an effective date of April 2, 2020, this new law raises just as many questions as answers.  In a 90-minute, complimentary webinar, I will analyze the new paid sick leave and FMLA provisions with two of my Littler colleagues Alexis Knapp and Jim Paretti.  Together, we will provide as much practical counsel as we can to employers navigating the requirements of this law.

Editorial comment: These two colleagues of mine are fabulous — Alexis eats, sleeps and breathes FMLA, and Jim has deep insight into the politics behind why this law ended up the way it did and the additional legislative changes we might expect in the future.  [And me, I’m just along for the ride . . . ]

Alexis, Jim and I will address questions such as:

  • The new law covers private employers fewer than 500 employees.  How is that number calculated and how are multiple, related companies treated when determining employer coverage?
  • How are the exclusion and opt-out provisions for certain types of employers and certain size employers going to work?
  • If an employee is terminated before the effective date of the law, is the employer still required to provide paid sick or FMLA leave?
  • How do the new FMLA and sick leave requirements combine with existing leave under Company policy or state/local law, and/or the amount of FMLA leave already taken?
  • What are the reasons for leave and how does an employer manage the overlap between paid sick leave and paid FMLA leave?
  • If employers provide paid leave before the April 2 effective date, is this time credited against any entitlement once the law is effective?
  • Is the paid leave an employer provides an employees reimbursed by the federal government?  How is an employer reimbursed and what is the anticipated time line for payment?
  • Can paid sick and paid FMLA leave be used intermittently or must it taken in a continuous period of time?

Email me at jnowak@littler.com with any questions you want us to cover during the webinar.