The COVID-19 pandemic has changed the world overnight. With rapid developments, it is still uncertain how much this will impact our local economy and community.
A series of legislation is being enacted to provide relief to businesses and individuals affected by COVID-19. First up is the Families First Coronavirus Response Act (FFCRA), which takes effect on April 1, 2020.
For small and medium-sized employers in Hawaii, the biggest, immediate impact of the act is the mandatory paid employee leave provisions, which expand FMLA eligibility and provide immediate paid sick leave benefits at covered companies with fewer than 500 employees.
Who is going to pay for this, you ask?
Short answer: employers will pay for it up front. However, there are several measures being put into place to help offset the cost, like quarterly payroll tax credits and SBA loans. See below for more information.
Here is what you need to know now about the FFCRA:
- By April 1, 2020, employers must display (or electronically distribute) this poster in a conspicuous place on your work premises: FFCRA Poster (PDF)
- Private employers with 500 or fewer employees required to provide COVID-19 related paid leave are eligible for a 100 percent refundable payroll tax credit on the wages paid for leave. Here’s how the tax credit will work.
- The leave provisions of the FFCRA sunset on December 31, 2020.
For more information, refer to:
- Summary of Key FFCRA Provisions (PDF)
- FFCRA guidance from the Department of Labor (3/24/20)
- FFCRA: Questions and Answers (DOL)
On March 24, 2020, the Department of Labor clarified that the FFCRA’s paid leave provisions are effective April 1, 2020. Previous guidance indicated that the bill would take effect April 2, 2020.
Additional COVID-19 Employer Resources
Our sister company simplicityHR has created a COVID-19 Employer Resources page to bring you the latest information including how to navigate unemployment insurance, federal assistance programs, and impacts on our local business community.
Here are additional resources you might find helpful during these difficult times:
- Resources for Unemployment Insurance Assistance
- Form-fillable documents for essential employees under Hawaii’s stay at home order
Over the next few months, we expect that your business, like ours, will change dramatically. Here at ALTRES Staffing, we are here to support you in any way we can. Together we will get through this.
This article is for informational purposes only and does not constitute legal advice. Readers should first consult their attorney, accountant or adviser before acting upon any information in this article.