Being an employer during this era of COVID-19 can be challenging and confusing. ECEA is here to help guide you through these ever changing times. Below are some resources given to us by our generous partners at HK Law, Laura Hazen and Susan Klopman. These are all openly available resources however if you would like more one on one support regarding your childcare business please contact HK law at https://www.hklawllc.us/contact
Attached is a memo about the Federal leave. And here is a press release with links to a number of resources: https://www.dol.gov/newsroom/releases/whd/whd20200324
This is the latest, as I understand it:
- DOL will issue regulations sometime in April
- DOL declared the effective date as April 1, 2020 (instead of April 2)
- DOL will has published a model workplace notice poster which you are required to post or email out (below)
- So long as employers act reasonably and try in good faith to comply with the FFCRA, DOL will not enforce penalties for the first 30 days
- The tax credits for qualified sick leave paid includes the costs of an employer’s health insurance premiums during leave
I have heard from at least one CPA that the tax credits go against FICA and from another that they will count against FICA and Social Security.
From the Q&A, here are two issues that are very relevant to businesses who are impacted by the child care leave, and also those who are reducing hours:
· If providing child care-related paid sick leave and expanded family and medical leave at my business with fewer than 50 employees would jeopardize the viability of my business as a going concern, how do I take advantage of the small business exemption?
To elect this small business exemption, you should document why your business with fewer than 50 employees meets the criteria set forth by the Department, which will be addressed in more detail in forthcoming regulations.
You should not send any materials to the Department of Labor when seeking a small business exemption for paid sick leave and expanded family and medical leave.
· How do I count hours worked by a part-time employee for purposes of paid sick leave or expanded family and medical leave?A part-time employee is entitled to leave for his or her average number of work hours in a two-week period. Therefore, you calculate hours of leave based on the number of hours the employee is normally scheduled to work. If the normal hours scheduled are unknown, or if the part-time employee’s schedule varies, you may use a six-month average to calculate the average daily hours. Such a part-time employee may take paid sick leave for this number of hours per day for up to a two-week period, and may take expanded family and medical leave for the same number of hours per day up to ten weeks after that.
If this calculation cannot be made because the employee has not been employed for at least six months, use the number of hours that you and your employee agreed that the employee would work upon hiring. And if there is no such agreement, you may calculate the appropriate number of hours of leave based on the average hours per day the employee was scheduled to work over the entire term of his or her employment.
Additional information about unemployment benefits and alternatives to lay offs:
Resources for Employers
Alternatives to Laying off Your Employees
The Division of Unemployment Insurance offers a Work-Share Program as an alternative to laying off your employees. Visit the website to see if your business qualifies.
Employers experiencing a reduction in workforce are eligible for support services including consultation on layoff aversion strategies, onsite workshops for employees in transition, job placement assistance, and information on unemployment benefits. More info: https://www.colorado.gov/pacific/cdle/layoff-separations
Notice to Employers