COVID-19 Resource Center

April 03, 2020

COVID-19: Temporary Rule - Hours and Wages Under FFCRA

In follow-up to our prior summary on the newly issued “Temporary Rule” by the Department of Labor, Wage and Hour Division, please find a discussion of the newly created FFCRA “hours and wages” under the Temporary Rule.

Employers are mandated to comply with the newly enacted FFCRA and provide their employees with paid sick leave or expanded family and medical leave for specific qualifying reasons due to COVID-19. The sections outlined below provide employers a simplified overview of applicable hour and wage requirements.

Hours

Under the FFCRA, covered employers must pay employees who are unable to work due to:

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

If a full-time employee is out on leave for reasons outlined in (1-4) above, the employee is eligible for up to (80) hours of paid sick leave. If the employee is a part-time employee, he or she is eligible for the number of hours of leave he or she typically works on average over a two-week period.

If however, a full-time employee goes out on leave for qualifying reason (5), he or she is eligible for up to (12) weeks of paid sick leave at (40) hours per week. Part-time employees that are eligible for leave are eligible for the number of hours that the employee is normally scheduled to work over the (12) week period.

Wages

  • Employees who are taking leave due to reasons outlined in (1-3) above, are to be paid their regular rate or the applicable minimum wage, whichever is higher.  Employers must keep in mind, there is a cap of $511 per day and $5,110 in the aggregate over a two-week period.
  • Employees who are taking leave due to reasons outlined in (4) or (6) above, are to be paid at 2/3 their regular rate or 2/3 of the applicable minimum wage, whichever is higher.  Employers must keep in mind, there is a cap of $200 per day and $2,000 in the aggregate over a two-week period.
  • Employees who are taking leave due to reasons outlined in (5) above, are to be paid 2/3 their regular rate or the 2/3 applicable minimum wage, whichever is higher.  Employers must keep in mind, there is a cap of $200 per day and $12,000 in the aggregate over a (12) week period. This period consists of two weeks of paid sick leave followed by (10) weeks of paid expanded family and medical leave.

We will continue to provide blasts regarding the most relevant highlights of the new Temporary Rule in the coming days.  As always, if you have questions or need assistance applying these new rules to your workforce please do not hesitate to contact our Employment Practice Group at 1-888-488-2638.