Families First Coronavirus Response Act Enacted by the President: What Employers Need To Know

President Signs Families First Coronavirus Response Act

I wanted to share some information about the new law that is in effect for employers that have employees between  1 and 499 employees.

Yeah, that’s right.

This law only impacts those under 500 employees because the companies with 500 employees and more have the ability to uh, lobby Congress of the United States to get them out of paying any extra fees. I saw this law and was um, a bit concerned for my clients because most of them would be in this range.

So let’s talk about a little bit about what it is. First of all, we’re talking about the Families First Coronavirus Response Act. It was passed yesterday (March 18, 2020) and it goes into effect in 14 days from today, I believe.

But I want to make a disclaimer as my attorneys would make me make a disclaimer. I am not an attorney. I don’t play one on TV and I don’t play one on the interwebs or on the Facebooks or anything like that.


So,  this is not legal advice in any way. So I just wanted to share this with you. I will also, after this is up and I will put the link for the one that I’m doing it on, but you can just Google the Family’s First Coronavirus Response Act and look it up for employers with  1 to 499 employees.

Anyways, the act basically covers all employees if they’ve been employed with you for at least 30 days. So any employee that has been 30 days, regardless whether they’re full time or part time.

Now there are some rules with what they’re going to do and what the limits are. And so basically what it is, is the emergency paid sick leave act and it sets forced fourth us six covered reasons for qualifying for paid sick leave.

For instance, I’m in San Diego and our kids have been out of school for a week now. So if you have employees and they’ve said, Hey, I have to go home and take care of my kids and you don’t have any way to do any type of telework or anything like that, then you are required to pay them for two weeks worth and they do not have to use their own, um, vacation time, et cetera. So anyways, the details are on this page, but I, I just thought it was very interesting that they’re forcing the employers with 1 to 499. I mean, we love our employees, we want them taken care of, but it’s not fair for the government to, at the last minute when most companies are having the most difficult time.

Website with more details: California Employment Law Report

Well heck, I’ve been around, I’ve been an entrepreneur since I was in my teens and I’m in my early fifties now. And I have never seen anything like this. I’ve been through a very difficult recessions and very difficult times and never seen anything like this. And I don’t think any of us have, uh, and, and nobody knows how long this is going to last and where we’re going from here and whether we’re going to hit a recession or depression.

But the U S government in all their wisdom has decided to put a shoulder some of that responsibility of getting employees paid onto your shoulders. So this is in addition to all the other vacation time, sick time, medical leave, family leave, all those other things that you already have for your employees. Um, this is an addition to that. And there are six reasons to be covered.

Basically, if they’re forced in a local quarantine or isolation order, like we’re here right now in Southern California, or actually I think all of California is now under that. If the employee has been advised by a healthcare provider, if the employee is experiencing symptoms, if the employee is caring for an individual who is subject to an order, for instance, the kids in most schools in California have been out for a week now and for an individual or your kids and any other substantially similar conditions specified by the sector health.

So in other words, if there are anything going on and there’s different degrees of what you’ll have to pay, but basically for full time, you’re looking at like two weeks of time if they’re having to be forced out, like in California and you cannot have them, you know, remotely work anyways, I encourage you to, before you do anything with your employees, speak to an attorney because this bill has teeth, there are penalties and you don’t want to screw up with anything with labor laws and you want to take care of your employees and you know, they’re forcing you.

Please take note of this law, and talk to a human resources attorney before you do anything in regard to your employees.

And you awesome entrepreneurs, stay in the fight and do amazing things!

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