Emergency Family & Medical Leave Expansion Act Summary

Posted on Monday, March 30, 2020

The Emergency Family & Medical Leave Expansion Act provides up to 12 weeks of Family & Medical Leave if an employee is unable to work because the school or day care facility for a child under the age of 18 has been closed or the child’s babysitter or nanny is unable to work as a result of a COVID-19 emergency declared by the federal, state or local government.

In order to be eligible, an employee must have worked for at least 30 days for the employer.  In addition, the first 10 days of leave may be unpaid; however, they could be eligible for the two weeks of paid leave under the Emergency Paid Sick Leave Act.

The Emergency Family & Medical Leave Expansion Act simply adds another reason an employee may take Family & Medical Leave.  It does not increase the amount of leave available to an employee beyond what is already available under current law.

Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or childcare facility is unavailable in cases where the viability of the business is threatened.  The exemption will be available based on simple and clear criteria in circumstances involving jeopardy to the viability of an employer’s business as a going concern.

For an employee who is unable to work because of a need to care for a child whose school or childcare facility is closed or whose childcare provider is unavailable due to COVID-19, eligible employers may receive a refundable childcare leave credit.  The credit is equal to two-thirds of the employee’s regular pay, capped at $200 per day or $10,000 in the aggregate.  Up to 10 weeks of qualifying leave can be counted towards the childcare leave credit.

For additional information, please reach out to your advisor at DWD CPAs & Advisors.

Posted in Tax And Accounting Topics For Business

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