The page outlines our coverage with regard to COVID-19. However, it is important to note that state and federal governments and departments of insurance are in the process of providing guidance and direction for employers in response to the current situation. These developments will influence changes to our coverage, and we will publish updated guidance once occurs.
The Federal Bill:
Effective April 2nd, employers with <500 employees will be required to pay their employees sick leave for up to 2 weeks for COVID-19 related reasons:
- If the employee is unable to work or telework and is subject to a Federal, State, or local quarantine or isolation order related to COVID-19, has been advised by a health care provider to self-quarantine due to concerns related to COVID-19, or is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
- Employers are required to pay the employee their regular rate of pay up to a maximum of $511 per day ($5,110 total).
- If the employee is unable to work or telework and is caring for an individual who is subject to an order or been advised as described above, is caring for a son or daughter if the school or place of care has been closed or the child care provider is unavailable due to COVID-19 precautions, or is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
- Employers are required to pay 2/3’rd’s of the employee’s regular rate of pay up to a maximum of $200 per day ($2,000 total).
The Federal bill also expands FMLA by requiring employers to provide paid sick leave after 2 weeks and up to 12 weeks if an employee is unable to work (or telework) and needs leave to care for a son or daughter under 18 years of age if the school or place of care has been closed, or the child care provider is unavailable due to this public health emergency.
Employers can receive federal tax credits as a form of reimbursement for paid sick leave benefits required by the Federal bill. We recommend consulting your internal legal counsel or tax consultant to discuss the specifics of the federal tax credit program. This act expires on 12/31/2020.