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DC Tax Flash: DOL Adds to Informal Paid Leave Guidance

Tax Alert

The Department of Labor continues to add it its informal guidance on the paid leave provisions enacted by the Families First Coronavirus Response Act (FFCRA, P.L. 116-127). The new law provides certain businesses with fewer than 500 employees tax credits to grant paid leave to employees, either for the employee's own health needs or to care for a family member.

Today, DOL posted a 30-minute webinar on FFCRA compliance that is posted here (requires Adobe Connect). The accompanying slides are posted here.

DOL has also added 20 new questions to its FFCRA Q&As page. The newly added questions include the following directed at employers:

Question 75: As an employer, how much do I pay a seasonal employee with an irregular schedule for each day of paid sick leave or expanded family and medical leave that he or she takes?

Answer: You may calculate the daily amount you must pay a seasonal employee with an irregular schedule by taking the following steps.

First, you should calculate how many hours of leave your seasonal employee is entitled to take each day. Because your employee works an irregular schedule, this is equal to the average number of hours each day that he or she was scheduled to work over the period of employment, up to the last six months.

Second, you should calculate the seasonal employee's regular hourly rate of pay. This is calculated by adding up all wages paid over the period of employment, up to the last six months, and then dividing that sum by the number of hours actually worked over the same period.

Third, you multiply the daily hours of leave (first calculation) by your employee's regular hourly rate of pay (second calculation) to compute the base daily paid leave amount.

Fourth, you should determine the actual daily paid leave amount, which depends on the type of paid leave taken and the reason for such paid leave.

You must pay your seasonal employee the full base daily paid leave amount, up to $511 per day and $5,110 in total, if the employee is taking paid sick leave for any of the following reasons:

  • Your employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
  • Your employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; or
  • Your employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis.

You must pay your seasonal employee 2/3 of the base daily paid leave amount, up to $200 per day and $2,000 in total, if your employee is taking paid sick leave for any of the following reasons:

  • Your employee is caring for an individual who either is subject to a quarantine or isolation order related to COVID-19 or who has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
  • Your employee is caring for his or her child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons; or
  • Your employee is experiencing any other substantially similar condition, as determined by the Secretary of Health and Human Services.

You must pay your seasonal employee 2/3 of the base daily paid leave amount, up to $200 per day and $10,000 in total, if the employee is taking expanded family and medical leave to care for the employee's child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19-related reasons. Please note that if your seasonal employees are not scheduled to work, for example, because it is the off-season, then you do not have to provide paid sick leave or expanded family and medical leave.

The complete set of DOL Q&As is posted here. The newly added questions are numbered 60-79.

Yesterday, DOL issued formal temporary regulations on the paid leave provisions of FFCRA. The 125-text of the regulations is posted here.


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