At Lincoln Financial Group, we support the 30 million small business owners who employ nearly half the nation's workforce. Many of these employers are our group insurance benefits clients and we understand that they-and their employees-are navigating through the rapidly-evolving COVID-19 situation.

These business owners consistently put their employees first—nearly all employers (96%) say they "love" their employees and 95% would do anything to help their employees build a better financial future for themselves and their loved ones, according to Lincoln Financial Group's 2019 Love and Responsibility Employer Survey.

Thanks to the Families First Coronavirus Response Act (FFCRA), employees now have additional coverage if they're out of work, and employers have help to fund that additional leave.

While some businesses are temporarily closed, this legislation is in effect until the end of 2020. Here are the top three things for small businesses (those with less than 500 employees) to know about this legislation:

1. Employees' COVID-19-related absences are covered for paid sick leave.

More guidance will be coming from the Department of Labor, but at a high level, employees caring for children due to school or daycare closures; those in self-quarantine due to COVID-19 exposure; those experiencing COVID-19 symptoms or who are seeking medical diagnosis; and anyone caring for someone in isolation or under quarantine is protected and receives paid leave.

Full-time employees are eligible for 10 days of paid sick leave, while part-time employees' eligibility is based on the average number of hours worked over a two-week period. The benefit amounts are as follows:

A maximum of $511 per day and $5,110 total when they are quarantined, in isolation, experiencing COVID-19 symptoms and are awaiting diagnosis, or have COVID-19.
A maximum of $200 per day and $2,000 total for those who can't work because they have a child at home due to a school/daycare closure or they are caring for others in quarantine, isolation, or experiencing COVID-19 symptoms and awaiting diagnosis, or have COVID-19.

2. Extended paid leave for childcare closures and other reasons are covered for up to 12 weeks.

Under the new law, the federal Family and Medical Leave Act (FMLA) requires private employers with fewer than 500 employees, and most public employers, to provide up to 12 weeks of job-protected paid leave due to closed schools and childcare providers resulting from the COVID-19 public health emergency.

The first 10 days of the FMLA leave may be unpaid, then employers pay two-thirds of the employee's regular rate of pay per day, based on the number of hours an employee is normally scheduled to work. For those with varying work schedules, the total is based on the average number of hours scheduled over the previous six-month period or the reasonable expectation of hours at time of hire.

Employees may need to provide documentation of the school/childcare closure to their employer. This could include a recommendation from a health care provider that an employee has symptoms or should be quarantined, evidence of exposure or notice of school or childcare provider closure.

3. This legislation helps you and your employees.

According to the Chamber of Commerce, one-third of small businesses with less than 500 employees have no funds for unexpected expenses. However, a refundable payroll tax credit to employers will cover 100% of the cost of the wages impacted by this legislation, and businesses with fewer than 50 employees can apply for an exemption if the leave provisions have the potential to cause the business to fail. Health care providers and emergency responders are also excluded.

Eric Reisenwitz is senior vice president and interim president of group protection at Lincoln Financial Group. More information about the FFCRA can be found here.

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Instant Insights /

What small businesses need to know about the Families First Coronavirus Response Act

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