How Do The CARES Act and FFCRA Affect Employees?
These are strange times. COVID 19 has disrupted nearly everyone’s personal and financial lives. Millions of jobs have been lost, and the total impact is not yet known.
At the end of March 2020, the United States federal government responded. President Trump and Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act is designed to help both employees and employers deal with the financial impact of COVID 19.
Most Americans now know that they can expect a stimulus deposit or check. Many have already received that money. Individuals receiving disability benefits (SSDI, SSI, STD, and LTD) are also eligible for this stimulus money. However, there is an exception for an individual receiving Social Security disability benefits who is declared as a dependent. They would not be eligible for a stimulus payment.
The CARES Act also provides incentives to employers to help retain and pay their employees. It provides payroll credits to employers to help with the cost of paying employees in the face of this economic downturn.
The CARES Act also offers supplemental unemployment benefits ($600 per week) to those laid off, furloughed, or terminated. These benefits are on top of what states normally provide. The amount of this supplemental unemployment varies by state. So someone in Kansas City, Kansas can expect different unemployment compensation that someone in Kansas City, Missouri. The rules also vary by the individual’s earnings history and their number of dependents.
Employees also receive extra help through a separate law — the Families First Coronavirus Response Act (FFCRA). The FFCRA makes extends medical leave policies already established through the Family Medical Leave Act. For example, an employee who isn’t able to work a result of health problems related to COVID 19 may receive up to 80 hours of paid leave. This is also true for an employee who isn’t able to work because they must care for a quarantined person or child unable to go to school or daycare due to COVID 19. This paid leave is a big change from traditional unpaid medical and family leave.
Having said that, FFCRA changes do not mean that all medical leave is paid — just leave the qualifies due to COVID 19. And it does not mean that furloughed employees necessarily qualify for paid leave. Instead, state unemployment and the federal unemployment supplement are more designed to help those furloughed.
These FFCRA rules can get complicated. And they don’t apply even across the board. Employers with over 500 employees are exempt, and employers with fewer than 50 employees may qualify for an exemption in certain situations. Employers that do not comply with these regulations are subject to penalties.
The CARES Act and FFCRA are here to help in these strange times. But the roll out and execution will continue to be a complex challenge. If you have questions about how to navigate these issues, please call or text our office at 816.781.4836. Our office in North Kansas City remains open and fully staffed.