How the FFCRA Affects Businesses with Less than 50 Employees
03.31.2020 Written by: Henningson & Snoxell, Ltd.
[Update to this post here – 4/3/2020]
Are you a business owner with fewer than 50 employees (for a profit, nonprofit or religious organization)? Are you confused about the specific criteria required to claim an exemption to the expanded leave provisions of the Family’s First Coronavirus Response Act (FFCRA)? If so, you’re not alone. Recently, the U.S. Department of Labor provided much-needed information and guidance.
Let’s break it down:
According to the recent guidance, a small business is exempt from the mandatory emergency paid sick leave and expanded family and medical leave provisions of the FFCRA that go into effect on April 1st, only if an authorized officer of the business has determined that it meets at least one of these three conditions:
- The provision of emergency paid sick leave or expanded family and medical leave would result in the small business’s expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity; OR
2. The absence of the employee or employees requesting paid emergency sick leave or expanded family and medical leave would entail a risk to the financial health or operational capabilities of the small business because of their specialized skills, knowledge of the business, or responsibilities; OR
3. There are not enough workers to cover for the absent employees who request either emergency paid sick leave or expanded family and medical leave, resulting in the business operating at less than minimal functioning capacity.
For more information about these updated guidelines from the Department of Labor, or for guidance for your business, nonprofit or religious organization in light of these guidelines, please contact our Business and Nonprofit Organizations Team.