March 13, 2020

Proposed Coronavirus Paid Sick Leave Changes

Many Atlanta business owners set time aside at the end of 2019 to review strategy, refine goals and identify tactics needed to reach success. Focus is typically centered on ways to expand market presence, drive sales and increase profitability. However, it’s highly unlikely any discussion was had about managing through a global pandemic. The arrival of COVID-19, also known as Coronavirus, has sent shockwaves across the country forcing individuals and businesses to prepare for the worst. Even the National Hockey League (NHL), Major League Baseball (MLB) and Major League Soccer (MLS) have been impacted and suspended their seasons. Given the immediacy of the pandemic, Congress has proposed the Families First Coronavirus Response Act (the Act), which is designed to provide assistance to families impacted by the virus. While a large portion of the Act outlines funding and new federal government programs, there is one section that applies to Atlanta businesses – paid sick leave benefits. To help clients, prospects and others understand the proposed changes and impact, Wilson Lewis has provided a summary of key information below.

Paid Sick Leave Changes

The Act outlines several changes to paid sick leave programs that business owners need to consider.

• Paid Sick Leave Accrual – The Act will require companies to permit employees to gradually accrue seven days of paid sick leave and to provide an additional 14 days immediately in the event of a public health crisis (such as COVID-19).
• Additional Paid Sick Leave – The legislation will also require companies to provide an additional 14 days of paid sick leave, available immediately, during a public health crisis (such as COVID-19). It’s important to note an employer cannot require the substitution of other types of paid leave in place of paid sick leave.
• Certification – An employer will have the right to receive certification from those that take sick leave. This can include a recommendation or order from a health care provider or documentation an exposure has occurred, or the virus has been contracted.
• Construction Employees – It will allow employees of construction companies to receive sick pay based on hours worked across multiple contracts.
• Covered Circumstances – Requires companies to ensure paid sick leave covers days when a child’s school is closed, an employer is closed or during quarantine orders issued during a public health emergency.
• Expense Reimbursement – There will be a reimbursement of expenses offered to companies with 50 or fewer employees to assist with the cost of offering the additional 14 days of sick leave. The reimbursement is only available against paid sick leave time taken in bullet point #2.
• Effective Date – These changes would be effective immediately upon approval allowing impacted individuals the opportunity to claim needed benefits.

Contact Us

The Act has not yet been passed by Congress, so its possible modifications could be made before it becomes law. There has been discussion about including additional relief such as a payroll tax break for businesses. Regardless, the information provides insights into changes Atlanta businesses will need to make in the near future. If you have questions about the information outlined above or need assistance with business continuity planning or insurance needs, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.