COVID-19 has brought our everyday life to a halt and left us with many unanswered questions. Below are common FAQs our team has been receiving as it relates to the ongoing pandemic. As we navigate through the COVID-19 disruption, we will keep you informed through our COVID-19 Resource Center and continue to update you with relevant developments.

Who has to comply with the Families First Coronavirus Response Act and when is it's effective date?

FFCRA effective April 1, 2020 Size of the Employer Employers that have fewer than 500 employees at the time your employee’s leave is to be taken Includes full-time and part-time employees within the United States  include employees on leave; temporary employees who are jointly employed by you and another employer and day laborers supplied by a temporary agency What are the exceptions? Employers with fewer than 50 employees may be eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or because child care is unavailable in cases, if viability of their business is threatened. Businesses that are requesting an exemption will need to document why they need an exception and how the viability of the business is threatened Essential Industries/Employees able to Telecommute If you are able to telework or perform work while you are at a home location other than your normal workplace, normal wages must be paid and is not compensated under FFCRA The Department of Labor is now explicitly authorized to issue regulations which, among other things: (1) exclude health care workers and emergency responders from eligibility for emergency paid sick time Which employees are eligible for benefits?  Employees that have been employed by the employer at least 30 calendar days  Employed immediate prior to the day the leave would begin

Under the uses of Emergency Paid Sick Leave is “Shelter in place” and “Stay at home order” the same as “Federal, State Local quarantine or isolation order”?

It does appear these are the same. Someone unable to report to work because of a stay at home order, who is able to perform their duties via telecommuting would not be able to collect benefits under these laws as we understand them. This understanding may change  after further guidance and implementation direction is received.

What is provided under the Emergency Paid Sick Leave/Family Leave Expansion?

What situations are covered under Emergency Paid Sick Leave? An employee who is unable to work because of coronavirus quarantine or self-quarantine or has coronavirus symptoms and is seeking a medical diagnosis An employee who is caring for someone with coronavirus, or is caring for a child because the child’s school or child care facility is closed, or for whom the child care provider is unavailable due to the coronavirus What situations are covered under the Family Leave Expansion? In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to the coronavirus Who pays for the leave? This is employer paid. A tax credit is available for employers in the amount the pay out under the law.

If an employee already has more than 80 hours of sick leave on the books, are we required to provide an additional 80 hours?

Yes, but that additional leave can only be taken for the reasons listed in the FFCRA related to COVID-19.

Are employees who are not working due to a Shelter-In-Place -Isolation by the Health Officer, eligible for the 80 hours sick pay?

Only if work is available for them are they entitled to sick leave. If work is not available due to the shelter in place order, then they are not eligible for sick leave but they will be eligible for FMLA. For more information on the most common employee benefit/staffing concerns regarding the legislative response to the COVID-19 crisis.

FFCRA Information

We have less than 50 employees. The Emergency Paid Sick Leave (EPSL) Act has the potential for an incredible impact for us which is causing us to question full lay-offs vs. temporary furlough.

There is a hardship exception for under-50 employers for child care leave only whether paid sick leave or paid FMLA. There are specific parameter that a company officer must determine to deny leave:    Providing EPSL or EFMLA would result in your expenses and financial obligations exceeding available business revenues & cause small business to cease operating at a minimal capacity The absence of the employee requesting leave would entail a substantial risk to the financial health or operational capabilities of the business due to their specialized skill, knowledge of the business or responsibilities. There are not sufficient workers who are able, willing and qualified, and who will be available when needed to perform the work needed for the business to operate at minimal capacity.

We don't have enough work for someone working at home, do they qualify for sick leave?

No, paid leave is only available if there is work available and the employee cannot work due to a covered reason.

Do employees apply for EFMLA through the EDD as they would with "normal" FMLA?

No, for both normal FMLA and emergency paid FMLA (as well as paid sick leave), the employee submits the request to the employer. It is only when the employee wants paid family leave (PFL) benefits from the state that they apply to the EDD. PFL is for entirely different purposes than these new paid leave entitlements, and is not really a leave. PFL is just partial wage replacement with no entitlement to reinstatement or other job guarantees.

What is Worker Adjustment and Retraining Notification (WARN)?

Worker Adjustment and Retraining Notification is a federal law that requires 60 days’ notice when there is a plant closing or a mass layoff under specific counting rules. California and some other states have a state counterpart.

If we pay COVID-19 compensation to employees who stay at home, will we be reimbursed by the government?

This is not a reimbursable expense under the paid leave provisions of FFCRA. Your employees are eligible for unemployment if you do not pay them. Alternatively, there are provisions of the CARES Act that would provide financial assistance in this instance. Consult your accountant or tax specialist for tailored information.

Can you apply for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan ( EIDL) at the same time?

Yes, you receive loans under both programs, but cannot use them for the same purposes. For example, you can document that you used EIDL money to pay supply vendors and PPP money for May payroll and be fine. Those were different purposes.

To find information and resources such as our Coronavirus Guide for Businesses , assembled to help businesses navigate through the COVID-19 disruption, visit heffins.com/COVID19

If you have further questions, please reach out to you broker directly or visit cdc.gov. Stay healthy and stay safe!

The material provided on or through this email and our website is for information purposes only and is not intended to provide any financial, legal, or medical advice or opinion in regard to any individual situation. This information should not be relied on to determine insurance coverage or lack thereof. Insurance forms and endorsements, and insurer rules and guidelines, evolve over time and vary based on insurance company, changes in edition dates, regulations, court decisions, and state jurisdiction. The information provided here is based on a review of insurance coverages that may be implicated in regard to COVID-19 from sources we deem to be reliable, and communications we have received from insurance companies and other relevant resources. We make no representation or warranty as to the accuracy of this information as applied to any individual case. Please advise our office if you want to discuss your specific insurance coverages or needs, or to submit a claim for coverage with your insurance provider.