Small Business Survival During COVID-19...Tell them what you are doing too 5. Owners invest or lend...

www.scorevermont.org

Small Business Survival During COVID-19MARCH 31, 2020


Agenda & RulesAGENDA

• Rules for the webinar

• Introduction of the speakers - Jack Cleary & Steve Greenfield

• Jack Cleary’s Presentation

• Q&A with Jack

• Steve Greenfield’s Presentation

• Q&A with Steve

• Closing comments & survey

RULES FOR THE WEBINAR• All registrants are muted by default

• Question? Tap the Q&A button

• Chat will not be monitored

• We will have Q&A after each presentation


Today’s SpeakersJack Cleary• SCORE Subject Matter Expert

• 25 years as Human Resources professional

• Worked in Technology, Hospitality, Finance Industries

• Small to rapidly growing organizations, including Fortune 1000 companies

• Created HR Departments in diverse environments that◦ Experience rapid growth◦ Resistant to change◦ Lacked structure

Steve Greenfield• SCORE Certified Mentor

• Former Chief Operating Officer of VEDA

• Extensive experience in commercial and agricultural lending, of all sizes

• Skilled Business Advisor in:◦ Business plans and strategy, especially financials◦ Start-up and Growth strategies◦ Marketing


Human ResourcesJACK CLEARY


Family and Medical Leave• Virtually all employers will be required to provide paid leave under certain circumstances.

• All employees are eligible

• You will be reimbursed for the cost of providing paid leave through a credit that you can apply against your payroll taxes. If your credit is more than your taxes, you can apply for the difference in cash

• The Act will be in effect from April 1 to December 31. It applies to pretty much all employers regardless of size.


Family and Medical Leave• Employees who show COVID-19 symptoms, or are quarantined due to a government order or on the advice of a health care provider, are eligible for up to 2 weeks of leave at their regular rate of pay

• Employees caring for a family member with COVID-19 symptoms are eligible for up to 2 weeks leave at two-thirds of their regular rate of pay

• Employees caring for children who's school or daycare is closed for COVID-19 reasons are eligible for up to 12 weeks leave at two-thirds of their regular rate of pay


Family and Medical Leave• The maximum employer reimbursement to the company for an employee receiving 100% pay is $511/day.

• The maximum reimbursement for 2/3 pay is $200/day

• There will be an information poster that you will need to add to the other required posters. ◦ This will be included in the post-event email that goes out to all registrants.


Unemployment Insurance• Benefit will be the normal benefit plus $600/week, for up to 4 months◦ The maximum normal benefit in Vermont is $458/week, now $1058/week◦ A laid-off employee that was making $41k/year will hit the max

• UI benefit eligibility has been extended from 26 weeks to 39 weeks


Unemployment Insurance• In addition to permanent job loss, employees will be eligible to collect benefits in these cases:◦ Temporary layoff (10 weeks or less)◦ Temporary business closure◦ Temporary reduction in hours◦ In some cases, when self-isolating

• Eligibility expanded to include:◦ Self-employed◦ Gig-economy workers/contractors


Lay-Offs: The Conversation• Be prepared with all the information the employee will need◦ A letter stating the employee’s last workday and call-back day (if any).

If it is a temporary lay-off, say so. ◦ Last Check◦ Accrued time off◦ COBRA paperwork for medical/dental/vision participants

• A private setting

• Be sympathetic, but direct

• The kindest think you can do is to be honest


Resources• US Department of Labor◦ Wage and Hour Issues: https://www.dol.gov/agencies/whd/pandemic◦ Required Poster: https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-

Federal.pdf

• Vermont Department of Labor◦ COVID-19 Employers Updates: https://labor.vermont.gov/covid19/employers

• US Centers for Disease Control and Prevention◦ COVID-19 Information Posters: https://www.cdc.gov/coronavirus/2019-

ncov/communication/factsheets.html

• Today’s Presentation Packet download includes:◦ Families First Coronavirus Response Act: Questions and Answers◦ Families First Coronavirus Response Act: Employer Expanded Family and Medical Leave Requirements

https://www.dol.gov/agencies/whd/pandemic

https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf

https://labor.vermont.gov/covid19/employers

https://www.cdc.gov/coronavirus/2019-ncov/communication/factsheets.html


Q&A For Jack• What are your HR related questions?


Cash Flow & FinanceSTEVE GREENFIELD


Your Business Is As Unique as You• Situations vary by:◦ Type and size of business◦ Age of business◦ Amount and number of liabilities◦ Overall strength of balance sheet◦ Revenue now - some or none◦ Financial resources of owners◦ Financial knowledge of owners◦ Current banking relationships


Define the ProblemMonthly cash flow projection

• How much is the projected cash flow needed from now to end of year?

• When does it occur?

• Do multiple scenarios with different assumptions, especially with timing and size of any projected revenue increases

• SCORE has an Excel template you can use◦ Link: https://www.score.org/resource/12-month-cash-flow-statement

• This will give you a good estimate of total cash flow need and timing

https://www.score.org/resource/12-month-cash-flow-statement


Strategies to ConsiderConserve Cash!

• Consider using any one (or more than one) of these options:1. Cut costs and reduce cash out items Examples: Rent relief, Advertising, Credit card payments (skip if you can, or make minimums)

2. Stretch A/P maybe, collect A/R, manage inventory levels3. Defer capital expenditures, reduce number of products and/or product lines4. Talk to existing lenders & creditors about relief (skip payments, moratorium, restructure?) Be proactive: Tell them what you are doing too

5. Owners invest or lend money to the business. Ask for a loan from family and/or friends.


What You Need• If lender doesn't know you, will need a package of financial info: ◦ Tax returns◦ YTD income statement◦ Balance sheet◦ 12 month cash flow projection◦ Personal financial statement◦ Collateral / security you can pledge◦ Steps you've taken to help yourself


Third-Party New Loans• Your existing lenders

• VEDA: ◦ May not have appropriations until May?

• Alternative lenders◦ Community Capital of Vermont

◦ Opportunities Credit Union

◦ Vermont Community Loan Fund

• And the SBA


SBA EIDLEconomic Injury Disaster Loan

• Working capital loans to help small businesses and some non-profits meet financial obligations (debt payments, payroll, A/P, etc.) that cannot be met due to COVID

• Cannot refinance existing debt

• Not intended to replace lost sales/revenue

• Loan is direct to the business from US Treasury/SBA (no bank involvement)

• No application fee

• Must have credit history acceptable to SBA◦ Credit score◦ Show ability to repay loan after crisis◦ Collateral required for loans over $25,000◦ Personal guaranty may be required

• Max loan is $2,000,000◦ SBA calculates loan amount based on revenues, expenses and repayment capacity

• Interest rate 3.75%◦ Term up to 30 years◦ Payments deferred for several months

When applying for EIDL can also apply for Emergency Economic injury Grant (EEIG)

• An advance up to $10,000 on the EIDL which does not need to be repaid under any circumstance

• Can be used for payroll, other business obligations like rent and mortgage payments;

• Provided within 3 days of applying

• Available through 12/31/2020


SBA PPPPaycheck Protection Program

• Intended to allow businesses to maintain payroll and retain employees.

• For businesses operating 2/15/19-6/30/19◦ Maximum loan is 250% of average monthly payroll costs during that period◦ Loan proceeds can be used to cover payroll, health insurance premiums; mortgage interest; rent; utilities.

• Loan forgiveness equal to the amount spent on covered expenses during the 8 week period after loan originated◦ Covered expenses referenced above◦ Forgiveness amount reduced if number of employees falls below the number employed in same period 2019

• Most fees waived

• No collateral or personal guaranty

• Loan amounts not forgiven:◦ Maximum of a 10 year term◦ Maximum interest rate of 4%◦ Payment deferred for 6-12 months.

• PPP loans offered through SBA 7(a) lenders◦ 100% guarantied by SBA◦ Can be combined with EIDL and EEIG but no duplication in use of funds


SBAExpress Disaster Bridge Loan

• Previous relationship with SBA? Access up to $25,000 to help cover cash flow needs while applying for an EIDL

• Can be term (7 years) or short term

• Quick turnaround

• Some fees apply


SBASmall Business Debt Relief Program

• Provides immediate relief to borrowers with SBA non-disaster loans including 7(a) and SBA 504.

• SBA will cover all payments on these loans including principal, interest and fees for 6 months.


Q&A For Steve• What are your cash flow & finance related questions?


Still Need to Connect?We get it .. We went over a lot of information!

Visit us on the web to download tools, request a mentor, find additional resources and contact info:


EMPLOYEE RIGHTSPAID SICK LEAVE AND EXPANDED FAMILY AND MEDICAL LEAVE UNDER THE FAMILIES FIRST CORONAVIRUS RESPONSE ACT

WAGE AND HOUR DIVISIONUNITED STATES DEPARTMENT OF LABOR

WH1422 REV 03/20

For additional information or to file a complaint:1-866-487-9243

TTY: 1-877-889-5627dol.gov/agencies/whd

1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;

2. has been advised by a health care provider to self-quarantine related to COVID-19;

3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;

4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);

► ENFORCEMENTThe U.S. Department of Labor’s Wage and Hour Division (WHD) has the authority to investigate and enforce compliance with the FFCRA. Employers may not discharge, discipline, or otherwise discriminate against any employee who lawfully takes paid sick leave or expanded family and medical leave under the FFCRA, files a complaint, or institutes a proceeding under or related to this Act. Employers in violation of the provisions of the FFCRA will be subject to penalties and enforcement by WHD.

5. is caring for his or her child whose school or place of care is closed (or child care provider is unavailable) due to COVID-19 related reasons; or

6. is experiencing any other substantially-similar condition specified by the U.S. Department of Health and Human Services.

The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020.

► PAID LEAVE ENTITLEMENTSGenerally, employers covered under the Act must provide employees: Up to two weeks (80 hours, or a part-time employee’s two-week equivalent) of paid sick leave based on the higher of their regular rate of pay, or the applicable state or Federal minimum wage, paid at:

• 100% for qualifying reasons #1-3 below, up to $511 daily and $5,110 total; • 2/3 for qualifying reasons #4 and 6 below, up to $200 daily and $2,000 total; and• Up to 12 weeks of paid sick leave and expanded family and medical leave paid at 2/3 for qualifying reason #5 below for up to $200 daily and $12,000 total.

A part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

► ELIGIBLE EMPLOYEESIn general, employees of private sector employers with fewer than 500 employees, and certain public sector employers, are eligible for up to two weeks of fully or partially paid sick leave for COVID-19 related reasons (see below). Employees who have been employed for at least 30 days prior to their leave request may be eligible for up to an additional 10 weeks of partially paid expanded family and medical leave for reason #5 below.

► QUALIFYING REASONS FOR LEAVE RELATED TO COVID-19 An employee is entitled to take leave related to COVID-19 if the employee is unable to work, including unable to telework, because the employee:

http://www.dol.gov/agencies/whd

3/25/2020 Families First Coronavirus Response Act: Employer Expanded Family and Medical Leave Requirements | U.S. Department of Labor

https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave 1/5

Families First CoronavirusResponse Act: Employer ExpandedFamily and Medical LeaveRequirements

The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers toprovide their employees with expanded family and medical leave for specified reasons related toCOVID-19.[1] The Department of Labor’s (Department) Wage and Hour Division (WHD) administersand enforces the new law’s paid leave requirements. These provisions will apply from the e�ectivedate through December 31, 2020.

Generally, the Act provides that covered employers must provide to all employees:[2]

Two weeks (up to 80 hours) of expanded family and medical leave at the employee’sregular rate of pay where the employee is unable to work because the employee isquarantined (pursuant to Federal, State, or local government order or advice of a health careprovider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or

Two weeks (up to 80 hours) of expanded family and medical leave at two-thirds theemployee’s regular rate of pay because the employee is unable to work because of a bonafide need to care for an individual subject to quarantine (pursuant to Federal, State, or localgovernment order or advice of a health care provider), or care for a child (under 18 years ofage) whose school or child care provider is closed or unavailable for reasons related toCOVID-19, and/or the employee is experiencing a substantially similar condition as specifiedby the Secretary of Health and Human Services, in consultation with the Secretaries of theTreasury and Labor.

A covered employer must provide to employees that it has employed for at least 30 days:[3]

Up to an additional 10 weeks of expanded family and medical leave at two-thirds theemployee’s regular rate of pay where an employee is unable to work due to a bona fide needfor leave to care for a child whose school or child care provider is closed or unavailable forreasons related to COVID-19.

U.S. DEPARTMENT OF LABOR

https://www.dol.gov/



Covered Employers: The expanded family and medical leave provisions of the FFCRA apply tocertain public employers, and private employers with fewer than 500 employees.[4] Mostemployees of the federal government are covered by Title II of the Family and Medical Leave Act,which was not amended by this Act, and are therefore not covered by the expanded family andmedical leave provisions of the FFCRA. However, federal employees covered by Title II of the Familyand Medical Leave Act are covered by the paid sick leave provision.

Small businesses with fewer than 50 employees may qualify for exemption from the requirementto provide leave due to school closings or child care unavailability if the leave requirements wouldjeopardize the viability of the business as a going concern.

Qualifying Reasons for Leave:

Under the FFCRA, an employee qualifies for expanded family and medical leave if the employee isunable to work (or unable to telework) due to a need for leave because the employee:

1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;

2. has been advised by a health care provider to self-quarantine related to COVID-19;

3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;

4. is caring for an individual subject to an order described in (1) or self-quarantine as describedin (2);

5. is caring for a child whose school or place of care is closed (or child care provider isunavailable) for reasons related to COVID-19; or

6. is experiencing any other substantially-similar condition specified by the Secretary of Healthand Human Services, in consultation with the Secretaries of Labor and Treasury.

Under the FFCRA, an employee qualifies for expanded family and medical leave if the employee iscaring for a child whose school or place of care is closed (or child care provider is unavailable) forreasons related to COVID-19.

Duration of Leave:

For reasons (1)-(4) and (6): A full-time employee is eligible for up to 80 hours of leave, and a part-time employee is eligible for the number of hours of leave that the employee works on averageover a two-week period.

For reason (5): A full-time employee is eligible for up to 12 weeks of leave at 40 hours a week, anda part-time employee is eligible for leave for the number of hours that the employee is normallyscheduled to work over that period.



Calculation of Pay:[5]

For leave reasons (1), (2), or (3): employees taking leave shall be paid at either their regular rateor the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in theaggregate (over a 2-week period).

For leave reasons (4) or (6): employees taking leave shall be paid at 2/3 their regular rate or 2/3the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate(over a 2-week period).

For leave reason (5): employees taking leave shall be paid at 2/3 their regular rate or 2/3 theapplicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate(over a 12-week period—two weeks of paid sick leave followed by up to 10 weeks of paid expandedfamily and medical leave).[6]

Tax Credits: Covered employers qualify for dollar-for-dollar reimbursement through tax credits forall qualifying wages paid under the FFCRA. Qualifying wages are those paid to an employee whotakes leave under the Act for a qualifying reason, up to the appropriate per diem and aggregatepayment caps. Applicable tax credits also extend to amounts paid or incurred to maintain healthinsurance coverage. For more information, please see the Department of the Treasury’s website.

Employer Notice: Each covered employer must post in a conspicuous place on its premises anotice of FFCRA requirements.[7]

Prohibitions: Employers may not discharge, discipline, or otherwise discriminate against anyemployee who takes expanded family and medical leave under the FFCRA and files a complaint orinstitutes a proceeding under or related to the FFCRA.

Penalties and Enforcement: Employers in violation of the first two weeks’ expanded family andmedical leave or unlawful termination provisions of the FFCRA will be subject to the penalties andenforcement described in Sections 16 and 17 of the Fair Labor Standards Act. 29 U.S.C. 216; 217.Employers in violation of the provisions providing for up to an additional 10 weeks ofexpanded family and medical leave to care for a child whose school or place of care is closed (orchild care provider is unavailable) are subject to the enforcement provisions of the Family andMedical Leave Act. The Department will observe a temporary period of non-enforcement for thefirst 30 days a�er the Act takes e�ect, so long as the employer has acted reasonably and in goodfaith to comply with the Act. For purposes of this non-enforcement position, “good faith” existswhen violations are remedied and the employee is made whole as soon as practicable by theemployer, the violations were not willful, and the Department receives a written commitment fromthe employer to comply with the Act in the future.



Topics For Workers For Employers Resources Interpretive Guidance State Laws

News

Wage and Hour Division

[1] Wage and Hour Division does not administer this aspect of the law, but notes that every dollarof expanded family and medical leave (plus the cost of the employer’s health insurance premiumsduring leave) will be 100% covered by a dollar-for-dollar refundable tax credit available to theemployer. For more information, please see the Department of the Treasury’s website.

[2] Employers of Health Care Providers or Emergency Responders may elect to exclude suchemployees from eligibility for the leave provided under the Act.

[3] Employers of Health Care Providers or Emergency Responders may elect to exclude suchemployees from eligibility for the leave provided under the Act.

[4] Certain provisions may not apply to certain employers with fewer than 50 employees. SeeDepartment FFCRA regulations (expected April 2020).

[5] Expanded family and medical leave provided under this Act does not carry over from one yearto the next. Employees are not entitled to reimbursement for unused leave upon termination,resignation, retirement, or other separation from employment.

[6] An employee may elect to substitute any accrued vacation leave, personal leave, or medical orsick leave for the first two weeks of partial expanded family and medical leave under this section.

[7] The Department will issue a model notice no later than March 25, 2020.

https://www.dol.gov/agencies/whd/topics

https://www.dol.gov/agencies/whd/workers

https://www.dol.gov/agencies/whd/employers

https://www.dol.gov/agencies/whd/resources

https://www.dol.gov/agencies/whd/interpretive-guidance

https://www.dol.gov/agencies/whd/state-laws

https://www.dol.gov/agencies/whd/news


3/25/2020 Families First Coronavirus Response Act: Questions and Answers | U.S. Department of Labor

https://www.dol.gov/agencies/whd/pandemic/ffcra-questions 1/8

Families First CoronavirusResponse Act: Questions andAnswers

As provided under the legislation, the U.S. Department of Labor will be issuing implementingregulations. Additionally, as warranted, the Department will continue to provide complianceassistance to employers and employees on their responsibilities and rights under the FFCRA.

DEFINITIONS“Paid sick leave” – means paid leave under the Emergency Paid Sick Leave Act.

“Expanded family and medical leave” – means paid leave under the Emergency Family andMedical Leave Expansion Act.

QUESTIONS & ANSWERS1. What is the e�ective date of the Families First Coronavirus Response Act (FFCRA), which

includes the Emergency Paid Sick Leave Act and the Emergency Family and MedicalLeave Expansion Act?The FFCRA’s paid leave provisions are e�ective on April 1, 2020, and apply to leave takenbetween April 1, 2020, and December 31, 2020.

2. As an employer, how do I know if my business is under the 500-employee threshold andtherefore must provide paid sick leave or expanded family and medical leave?You have fewer than 500 employees if, at the time your employee’s leave is to be taken, youemploy fewer than 500 full-time and part-time employees within the United States, whichincludes any State of the United States, the District of Columbia, or any Territory orpossession of the United States. In making this determination, you should includeemployees on leave; temporary employees who are jointly employed by you and anotheremployer (regardless of whether the jointly-employed employees are maintained on onlyyour or another employer’s payroll); and day laborers supplied by a temporary agency(regardless of whether you are the temporary agency or the client firm if there is a

U.S. DEPARTMENT OF LABOR

https://www.dol.gov/agencies/whd/flsa/2020-joint-employment/fact-sheet

https://www.dol.gov/agencies/whd/fact-sheets/13-flsa-employment-relationship




continuing employment relationship). Workers who are independent contractors under theFair Labor Standards Act (FLSA), rather than employees, are not considered employees forpurposes of the 500-employee threshold.

Typically, a corporation (including its separate establishments or divisions) is considered tobe a single employer and its employees must each be counted towards the 500-employeethreshold. Where a corporation has an ownership interest in another corporation, the twocorporations are separate employers unless they are joint employers under the FLSA withrespect to certain employees. If two entities are found to be joint employers, all of theircommon employees must be counted in determining whether paid sick leave must beprovided under the Emergency Paid Sick Leave Act and expanded family and medical leavemust be provided under the Emergency Family and Medical Leave Expansion Act.

In general, two or more entities are separate employers unless they meet the integratedemployer test under the Family and Medical Leave Act of 1993 (FMLA). If two entities are anintegrated employer under the FMLA, then employees of all entities making up theintegrated employer will be counted in determining employer coverage for purposes ofexpanded family and medical leave under the Emergency Family and Medical LeaveExpansion Act.

3. If I am a private sector employer and have 500 or more employees, do the Acts apply tome?No. Private sector employers are only required to comply with the Acts if they have fewerthan 500 employees.[1]

4. If providing child care-related paid sick leave and expanded family and medical leave atmy business with fewer than 50 employees would jeopardize the viability of mybusiness 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 fewerthan 50 employees meets the criteria set forth by the Department, which will be addressedin more detail in forthcoming regulations.

You should not send any materials to the Department of Labor when seeking a smallbusiness exemption for paid sick leave and expanded family and medical leave.

5. How do I count hours worked by a part-time employee for purposes of paid sick leave orexpanded family and medical leave?A part-time employee is entitled to leave for his or heraverage number of work hours in a two-week period. Therefore, you calculate hours of leavebased on the number of hours the employee is normally scheduled to work. If the normalhours scheduled are unknown, or if the part-time employee’s schedule varies, you may use asix-month average to calculate the average daily hours. Such a part-time employee may takepaid sick leave for this number of hours per day for up to a two-week period, and may take


https://www.dol.gov/agencies/whd/fact-sheets/13-flsa-employment-relationship


https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/FOH_Ch39.pdf



expanded family and medical leave for the same number of hours per day up to ten weeksa�er that.

If this calculation cannot be made because the employee has not been employed for at leastsix months, use the number of hours that you and your employee agreed that the employeewould work upon hiring. And if there is no such agreement, you may calculate theappropriate number of hours of leave based on the average hours per day the employee wasscheduled to work over the entire term of his or her employment.

6. When calculating pay due to employees, must overtime hours be included?Yes. The Emergency Family and Medical Leave Expansion Act requires you to pay anemployee for hours the employee would have been normally scheduled to work even if thatis more than 40 hours in a week.

However, the Emergency Paid Sick Leave Act requires that paid sick leave be paid only up to80 hours over a two-week period. For example, an employee who is scheduled to work 50hours a week may take 50 hours of paid sick leave in the first week and 30 hours of paid sickleave in the second week. In any event, the total number of hours paid under the EmergencyPaid Sick Leave Act is capped at 80.

If the employee’s schedule varies from week to week, please see the answer to Question 5,because the calculation of hours for a full-time employee with a varying schedule is thesame as that for a part-time employee.

Please keep in mind the daily and aggregate caps placed on any pay for paid sick leave andexpanded family and medical leave as described in the answer to Question 7.

Please note that pay does not need to include a premium for overtime hours under eitherthe Emergency Paid Sick Leave Act or the Emergency Family and Medical Leave ExpansionAct.

7. As an employee, how much will I be paid while taking paid sick leave or expandedfamily and medical leave under the FFCRA?It depends on your normal schedule as well as why you are taking leave.

If you are taking paid sick leave because you are unable to work or telework due to a needfor leave because you (1) are subject to a Federal, State, or local quarantine or isolationorder related to COVID-19; (2) have been advised by a health care provider to self-quarantinedue to concerns related to COVID-19; or (3) are experiencing symptoms of COVID-19 and areseeking medical diagnosis, you will receive for each applicable hour the greater of:



your regular rate of pay,

the federal minimum wage in e�ect under the FLSA, or

the applicable State or local minimum wage.

In these circumstances, you are entitled to a maximum of $511 per day, or $5,110 total overthe entire paid sick leave period.

If you are taking paid sick leave because you are: (1) caring for an individual who is subjectto a Federal, State, or local quarantine or isolation order related to COVID-19 or an individualwho has been advised by a health care provider to self-quarantine due to concerns relatedto COVID-19; (2) caring for your child whose school or place of care is closed, or child careprovider is unavailable, due to COVID-19 related reasons; or (3) experiencing any othersubstantially-similar condition that may arise, as specified by the Secretary of Health andHuman Services, you are entitled to compensation at 2/3 of the greater of the amountsabove.

Under these circumstances, you are subject to a maximum of $200 per day, or $2,000 overthe entire two week period.

If you are taking expanded family and medical leave, you may take paid sick leave for thefirst ten days of that leave period, or you may substitute any accrued vacation leave,personal leave, or medical or sick leave you have under your employer’s policy. For thefollowing ten weeks, you will be paid for your leave at an amount no less than 2/3 of yourregular rate of pay for the hours you would be normally scheduled to work. The regular rateof pay used to calculate this amount must be at or above the federal minimum wage, or theapplicable state or local minimum wage. However, you will not receive more than $200 perday or $12,000 for the twelve weeks that include both paid sick leave and expanded familyand medical leave when you are on leave to care for your child whose school or place of careis closed, or child care provider is unavailable, due to COVID-19 related reasons.

To calculate the number of hours for which you are entitled to paid leave, please see theanswers to Questions 5-6 that are provided in this guidance.

8. What is my regular rate of pay for purposes of the FFCRA?For purposes of the FFCRA, the regular rate of pay used to calculate your paid leave is theaverage of your regular rate over a period of up to six months prior to the date on which youtake leave.[2] If you have not worked for your current employer for six months, the regularrate used to calculate your paid leave is the average of your regular rate of pay for each weekyou have worked for your current employer.

If you are paid with commissions, tips, or piece rates, these wages will be incorporated intothe above calculation.

https://www.dol.gov/agencies/whd/fact-sheets/56a-regular-rate






You can also compute this amount for each employee by adding all compensation that ispart of the regular rate over the above period and divide that sum by all hours actuallyworked in the same period.

9. May I take 80 hours of paid sick leave for my self-quarantine and then another amountof paid sick leave for another reason provided under the Emergency Paid Sick LeaveAct?No. You may take up to two weeks—or ten days—(80 hours for a full-time employee, or for apart-time employee, the number of hours equal to the average number of hours that theemployee works over a typical two-week period) of paid sick leave for any combination ofqualifying reasons. However, the total number of hours for which you receive paid sick leaveis capped at 80 hours under the Emergency Paid Sick Leave Act.

10. If I am home with my child because his or her school or place of care is closed, or childcare provider is unavailable, do I get paid sick leave, expanded family and medicalleave, or both—how do they interact?You may be eligible for both types of leave, but only for a total of twelve weeks of paid leave.You may take both paid sick leave and expanded family and medical leave to care for yourchild whose school or place of care is closed, or child care provider is unavailable, due toCOVID-19 related reasons. The Emergency Paid Sick Leave Act provides for an initial twoweeks of paid leave. This period thus covers the first ten workdays of expanded family andmedical leave, which are otherwise unpaid under the Emergency and Family Medical LeaveExpansion Act unless the you elect to use existing vacation, personal, or medical or sickleave under your employer’s policy. A�er the first ten workdays have elapsed, you willreceive 2/3 of your regular rate of pay for the hours you would have been scheduled to workin the subsequent ten weeks under the Emergency and Family Medical Leave Expansion Act.

Please note that you can only receive the additional ten weeks of expanded family andmedical leave under the Emergency Family and Medical Leave Expansion Act for leave tocare for your child whose school or place of care is closed, or child care provider isunavailable, due to COVID-19 related reasons.

11. Can my employer deny me paid sick leave if my employer gave me paid leave for areason identified in the Emergency Paid Sick Leave Act prior to the Act going intoe�ect?No. The Emergency Paid Sick Leave Act imposes a new leave requirement on employers thatis e�ective beginning on April 1, 2020.

12. Is all leave under the FMLA now paid leave?




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No. The only type of family and medical leave that is paid leave is expanded family andmedical leave under the Emergency Family and Medical Leave Expansion Act when suchleave exceeds ten days. This includes only leave taken because the employee must care for achild whose school or place of care is closed, or child care provider is unavailable, due toCOVID-19 related reasons.

13. Are the paid sick leave and expanded family and medical leave requirementsretroactive?No.

14. How do I know whether I have “been employed for at least 30 calendar days by theemployer” for purposes of expanded family and medical leave?You are considered to have been employed by your employer for at least 30 calendar days ifyour employer had you on its payroll for the 30 calendar days immediately prior to the dayyour leave would begin. For example, if you want to take leave on April 1, 2020, you wouldneed to have been on your employer’s payroll as of March 2, 2020.

If you have been working for a company as a temporary employee, and the companysubsequently hires you on a full-time basis, you may count any days you previously workedas a temporary employee toward this 30-day eligibility period.

[1] If you are a Federal employee, you are eligible to take paid sick leave under the Emergency PaidSick Leave Act. But only some Federal employees are eligible to take expanded family and medicalleave under the Emergency Family and Medical Leave Expansion Act. Your eligibility will depend onwhether you are covered under Title I or Title II of the Family Medical Leave Act. The Departmentencourages Federal employees to discuss questions about their eligibility for expanded family andmedical leave with their employers or with the O�ice of Personnel Management. Additional FAQsregarding public sector employers will be forthcoming.

[2] If you are a Federal employee, the State or local minimum wage would be used to calculate thewages owed to you only if the Federal agency that employs you has broad authority to set yourcompensation and has decided to use the State or local minimum wage.

Small Business Survival During COVID-19...Tell them what you are doing too 5. Owners invest or lend...

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