How Much Emergency Paid Sick Leave Will Employees Receive Under the House Bill?
Since we first wrote about the workplace implications of the coronavirus (COVID-19) two weeks ago, the state of affairs has only worsened. The World Health Organization has declared COVID-19 a pandemic. The federal government has declared a national emergency. Pennsylvania has closed all K-12 schools for the next two weeks and shut down several counties surrounding Philadelphia. With these troubling developments, many have wondered how employees who do not receive paid sick leave will be able to make ends meet if the situation worsens.
In an attempt to respond to these concerns, the United States House of Representatives passed a bill over the weekend that, among other things, establish an emergency paid sick leave program and expand the Family and Medical Leave Act. Although the House Bill is not yet the law, as the Republican-controlled Senate has yet to pass it, the Trump Administration has expressed its support. This post will address the paid sick leave provisions of the House Bill.
The House Bill would require employers with fewer than five hundred (500) employees to provide an employee with paid sick leave for certain qualifying reasons relating to COVID-19. Such paid sick leave would be on top of any existing paid sick leave offered by a covered employer.
Under the House Bill, which would go into effect within fifteen (15) days of its enactment into law, full-time salaried employees would receive eighty (80) hours of paid sick leave. Part-time and hourly workers would receive an amount of paid sick time equal to the number of hours that they work on average in a two-week period. An employee would not need to be employed by his/her employer for a particular length of time to be eligible for paid sick leave, which could be taken intermittently or on a reduced schedule.
The House Bill would allow an employee to take paid sick leave to:
Care for his/her child if the child’s school or place of child care has been closed by government order due to COVID-19;
Seek a medical diagnosis or care if he/she is experiencing symptoms of COVID-19;
Self-isolate because he/she has been diagnosed with COVID-19;
Comply with the recommendation or order of a public official or health care provider that the employee’s physical presence at work would jeopardize others’ health because of his/her exposure to COVID-19;
Care for his/her family member who needs to obtain a medical diagnosis or care for symptoms of COVID-19;
Care for his/her family member who is self-isolating because he/she has been diagnosed with or is experiencing symptoms of COVID-19;
Care for his/her family member whose presence in the community, as determined by a public official or health care provider, would jeopardize others’ health because of exposure to COVID-19.
The sick leave would be paid at the employee’s regular rate, except for leave taken to care for a family member, which would be paid at 662/3% of the employee’s regular rate. Any paid sick leave mandated by the House Bill would have to be used before January 1, 2021.
An employee would need to notify the employer orally or in writing of his/her need to take paid sick leave, including the expected duration of the leave, at least seven (7) days in advance if the need is foreseeable or, otherwise, as soon as practicable. The House Bill would prohibit an employer from retaliating against an employee for taking paid sick leave.
Finally, the House Bill provides for potential tax relief for employers required to provide emergency paid sick leave. In particular, a covered employer could claim a refundable tax credit equal to 100% of paid sick leave wages mandated by the bill each calendar quarter. The credit would be against the employer’s share of Social Security taxes.
We will continue to keep employers updated on any developments on the House Bill, which would have sweeping implications if passed, and any other critical issues in this rapidly-changing area of the law. For questions about the potential impact of COVID-19 in the workplace or any other labor and employment law matter, please do not hesitate to contact the attorneys at Hoffman & Hlavac.