By PCCA

PCCA recently hosted a webinar on the Families First Coronavirus Response Act (Families First Act). Our guest, Charles Wilson, a board-certified labor and employment lawyer, explained what this new law means for pharmacies. Here are some questions and answers based on what Charles explained, along with a link to the webinar.

Does my pharmacy have to comply with the Families First Act?
Generally, the Families First Act applies to employers with fewer than 500 employees. Employers with fewer than 50 employees may be exempt from the law only when an employee requests leave to care for the employee’s children younger than 18 years of age when their school or daycare is closed or unavailable due to the COVID-19 pandemic, and when such leave would jeopardize the business as a going concern. The law sets forth three scenarios under which such leave would jeopardize the employer’s business. To elect this exemption, the employer must retain documentation of its determination that providing such childcare leave would jeopardize the business. This exemption cannot be claimed for leave due to other reasons (which are discussed below).

In addition, the U.S. Department of Labor, which is responsible for implementing rules as well as interpreting and enforcing the law, has also clarified that any employee of pharmacies and many other health care providers may be excluded from the Families First Act requirements. However, even if employees can be excluded from the Families First Act, it may be more beneficial for pharmacies to comply with the law even if they are not legally required, as long as they can afford to do it. Paying benefits under the Families First Act when not required could help to support and retain key talent in the long run. Additionally, pharmacies may be able to obtain assistance with protecting payroll through forgivable loans outlined in the newer Coronavirus Aid, Relief and Economic Security (CARES) Act.

When do businesses have to start complying with the Families First Act?
The Families First Act took effect on April 1, 2020, and will last until December 31, 2020. The Department of Labor is providing a grace period on enforcement until April 17, 2020.

What does the Families First Act mean for my business?
The Families First Act has two main components that affect businesses: The Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act.

Emergency Paid Sick Leave Act

• Affected employers must offer all employees up to 80 hours of paid sick leave
• They must give the employees full pay or 2/3 pay, depending on the reason for the leave
• There are six qualifying reasons for this emergency paid sick leave:
  1. Employee is under a federal, state or local COVID-19 quarantine or stay-at-home order
  2. Employee has been advised to self-quarantine by health care provider
  3. Employee is experiencing symptoms of COVID-19 and is seeking medical diagnosis
  4. Employee is caring for someone who meets reason 1 or 2 above
  5. Employee is caring for their child if the child’s school is closed or child care is unavailable due to the COVID-19 pandemic
  6. Employee is experiencing similar conditions as specified by the U.S. Department of Health and Human Services
• Employers must offer full pay for reasons 1–3, with a limit of $511 per day ($5,110 total)
• Employers must offer 2/3 pay for reasons 4–6, with a limit of $200 per day ($2,000 total)
• If the employee is reasonably and effectively able to work from home, these reasons do not apply, and the employee is not eligible for benefits

Emergency Family and Medical Leave Expansion Act

• Affected employers must offer qualifying employees up to 12 weeks of leave to care for their children if their children’s school or child care is closed due to the COVID-19 pandemic
• Employees must have been employed for 30 days or more to qualify
• Weeks 1–2 are not paid, but covered by the Emergency Paid Sick Leave Act
• Weeks 3–12 are paid at 2/3 the employee’s pay rate, with a limit of $200 per day ($10,000 total)

The rate of pay for the purposes of this law is either the employee’s regular pay rate or the federal, state or local minimum wage, whichever is greater.

The paid leave outlined in this act is in addition to employees’ existing paid time off. Employers cannot force employees to take their existing paid time off prior to using the Families First Act paid leave. Employers and employees can agree to supplement unpaid leave periods with paid time off.

Businesses must post a notice of the Families First Act rights wherever they post similar notices, such as in break rooms. They can also send it through an email to all of their employees or post it on their intranet if they have one.

Does the Families First Act include tax breaks or other compensation to help businesses comply?
For every dollar spent on Families First Act paid leave, businesses get a dollar-for-dollar tax credit. They can get immediate tax relief for this by withholding a portion of their federal payroll taxes that they normally pay.

This is just a quick overview of the Families First Act. To learn more about this new law, watch PCCA’s free Families First Coronavirus Response Act webinar on YouTube. We also have links to helpful resources about this and other U.S. laws related to the COVID-19 pandemic on our Coronavirus (COVID-19) Resource Center.

The information provided herein does not, and is not intended to, constitute legal advice; instead, all information, content and materials provided are for general informational purposes only. Readers of this information should contact their attorney to obtain advice with respect to any particular legal matter. All liability with respect to actions taken or not taken based on the information herein is hereby expressly disclaimed. The content is provided "as is," and no representations are made that the content is up-to-date or error-free.