The coronavirus outbreak isn’t ending anytime soon, and experts say many nonprofits are working swiftly to adapt their human-resource policies to this new reality. That includes figuring out what the new federal requirements for paid sick and family leave mean for organizations and how to ensure that policies comply.
The Families First Coronavirus Response Act, which took effect on April 1 and applies through the end of this year, guarantees emergency paid leave to eligible employees for reasons related to Covid-19. But some charities may qualify for an exemption, and these benefits are not available to all categories of workers.
To help you understand the requirements of the act and update your policies accordingly, the Chronicle asked Lisa McKeown, practice leader at Nonprofit HR, what nonprofits and their employees should know.
As the Department of Labor issues additional guidelines, we will ask and answer more, so check back here for more guidance. If you have a question we haven’t addressed, feel free to share it with us, and we’ll try to get answers. This interview was edited for brevity and clarity.
What new protections does the act provide?
It requires employers to provide two types of emergency paid leave for qualifying needs related to Covid-19:
Up to two weeks of sick leave for employees who are ill with the virus or who have to take care of either a child who is home because his or her school or day care is closed or someone in the household who has Covid-19. “There’s no length-of-service requirement,” McKeown says. “So you could be starting day one on a job, and if you have symptoms and have to go home, you’re covered for two weeks.”
Up to three months of family leave with job protection for employees who cannot “work or telework” because they have to take care of a child whose school or child-care center is closed due to the virus or because they need more than two weeks to recover from Covid-19. This type of leave is similar to that provided by the Family and Medical Leave Act, McKeown says, but with “relaxed requirements” including:
- The required length of employment to be eligible to take extended leave is 30 days, rather than 12 months.
- Extended leave is available to those who need to mind a child under the age of 18, rather than a child under the age of 13.
“If an employee needed more than 12 weeks,” McKeown says, “I guess it would be up to the employer if they would allow them to take it.”
In such cases, an employee may be able to switch to a long-term disability plan if the nonprofit has one or take more time off without pay, she says.
How much do employers have to pay workers while they are on leave?
Employees who take two weeks of leave because they are sick are guaranteed their regular rate of pay, McKeown says. Those who take short- or long-term leave to care for a child or someone with Covid-19 are entitled to two-thirds of their normal wages.
The law includes caps for the amount of both types of pay that an employer must provide and guidelines for calculating the rate for part-time employees. See this brochure from Nonprofit HR to learn more.
Are all organizations required to provide emergency paid leave?
The legislation currently applies to businesses, including nonprofits, with fewer than 500 employees.
Organizations with fewer than 50 workers may be able to get an exemption if they can show that providing paid leave will “harm their business,” McKeown says. Many groups that can’t afford to pay for these protections upfront probably are “scrambling” to figure out how to apply for an exemption, she says, but it is not yet clear how that will work.
The law does not apply to organizations with more than 500 employees. “I think the assumption is that they may be in a better financial position,” McKeown says.
What options do workers have if their organization is exempt from the requirements?
“It doesn’t preclude employees from using what is already in place,” McKeown says, including paid time off, the Family and Medical Leave Act, and short- and long-term disability benefits if needed.
Does the law offer retroactive benefits for people who had to take leave before April 1?
“I would not assume it’ll be retroactive at this point,” McKeown says, “but it could always change.”
If you’re still on leave for a qualifying reason, she says, you should be able to access the benefits now that the law is in effect.
Are these protections available to all workers at qualifying nonprofits, regardless of their employment status?
No, the law covers only people who are employees of an organization, McKeown says, as opposed to contractors and others who are not considered employees.
The new stimulus act, however, does include unemployment provisions for independent contractors and people who are self-employed. As organizations consider what steps to take to weather the crisis, some are opting to lay off or furlough certain workers so they can access these benefits, McKeown says. In addition, workers who are laid off can purchase health insurance through COBRA, she says, while those who are furloughed may continue to receive insurance benefits from their employer.
Are organizations responsible for covering the costs of paid sick and family leave?
Yes, but organizations can be fully reimbursed through payroll tax credits up to the amount allowed for each type of leave. An organization can pay an employee on leave more than that, but it will not be reimbursed for the value of extra leave provided.
If your nonprofit doesn’t pay payroll taxes, you can suppress the employer’s portion of Medicare and Social Security taxes, i.e., stop making those payments to the federal government, for workers who are on leave and put the savings toward their pay while they are out, McKeown says. “It won’t cover it all, but it helps.”
And if a nonprofit for some reason isn’t paying the employer’s portion of the Social Security tax, she adds, the organization can get a credit through its quarterly tax filings.
Do workers need to provide a doctor’s note to take sick leave?
“It doesn’t say anything about providing proof,” McKeown says, and you probably shouldn’t ask for it because it may be difficult to get a doctor’s note right now.
But if your organization is still working in the office, you can ask an employee who is on leave to get clearance from a doctor before returning. “I would want that as an employer,” she says.
If the employee stays home for a short period, you could instead ask him to make sure he is no longer showing symptoms before he returns.
If employees are still reporting to the office, can you ask someone who is sick to go home?
Yes. And, if staff members think another employee is sick because that person is showing or talking about having symptoms, “an employer can privately approach that person and ask them to go home because they do have a responsibility to employees that are still there,” McKeown says.
But don’t pressure a staff member to get a Covid-19 test or see a doctor, she says. “It’s really up to the employee to do that.”
Does the law offer any other protections nonprofits and their employees should know about?
Group health-insurance plans must cover the cost of testing for Covid-19, McKeown says, but not necessarily any related care.”
