Full- and part-time employees, self-employed individuals, independent contractors and gig workers who find themselves unable to work or out of a job because of COVID-19 are eligible for additional financial relief under emergency federal provisions that took effect earlier this month. Two measures recently passed by Congress and signed by President Donald Trump seek to ensure that individuals will not have to forgo a paycheck when they are unable to work due to restrictions, closures or illness caused by the virus.

Families First Coronavirus Response Act provides paid emergency sick and family medical leave

Under the federal Families First Coronavirus Response Act (FFCRA), as of April 1, private employers with under 500 employees (and public employers) are required to provide two new types of leave to employees: emergency paid sick leave (EPSL) and emergency family and medical leave (EFML). Employers are entitled to tax credits for any wages paid or costs incurred in connection with EPSL or EFML taken. Self-employed individuals, including independent contractors and partners in partnerships, are entitled to income tax credits under the act as well, to cover days of leave and wage amounts as if they were regular employees. Employers with less than 50 employees may be exempt if providing the leave will affect the viability of their business.

Emergency Paid Sick Leave

The FFCRA mandates that employers provide up to two weeks (80 hours) of paid sick leave (at full pay up to $511 per day per employee) to full- and part-time employees who are unable to work or telework because they are quarantined by a federal, state or local government order, or are experiencing COVID-19 symptoms and seeking a medical diagnosis. Employers must provide up to two weeks (80 hours) of paid sick leave (at two-thirds the employee's regular rate of pay up to $200 per day per employee) to full- and part-time employees who are unable to work or telework because they are: 1) caring for an individual subject to a federal, state or local quarantine order, 2) caring for a child under 18 whose school or child care provider is closed/unavailable due to COVID-19, and/or 3) experiencing any other substantially similar condition as determined by the secretaries of the Health and Human Services, Treasury and Labor departments.

Expanded Family and Medical Leave

The FFCRA mandates that employers provide up to 12 weeks of expanded family and medical leave (at two-thirds pay up to $200 per day per employee after the initial two weeks) to employees employed at least 30 calendar days, who are unable to work or telework because they are caring for a minor child whose school or child care provider is closed or unavailable due to COVID-19. During the first 10 days of unpaid leave, employees may use EPSL time.

For more information on both types of leave, visit dol.gov. For information on employer tax credits, visit irs.gov.

Expanded unemployment benefits under the Coronavirus Aid, Relief and Economic Security (CARES) Act

The federal Coronavirus Aid, Relief and Economic Security (CARES) Act expands eligibility for unemployment insurance to many individuals who previously could not receive those benefits, including the self-employed, independent contractors and gig workers. It also increases the amount of payments and the length of time they are available.

Specifically, the act expands existing unemployment benefits available under state law by providing: pandemic unemployment assistance, which expands eligibility for individuals who are typically ineligible for unemployment benefits; pandemic unemployment compensation, which includes an additional $600 per week in unemployment payments, on top of regular benefits (currently 60 percent of average wages up to $713 per week); and pandemic emergency unemployment compensation, which provides an additional 13 weeks of unemployment benefits.

Because the law is new, states have just received guidance on how to implement the federal law and are still developing an exact process to access the additional benefits. Nevertheless, the New Jersey Department of Labor is directing individuals, even those in the expanded categories, to apply now. Those applications will likely be denied, but that is considered part of the process, officials said, since ineligibility for regular unemployment is a prerequisite for receiving the expanded benefits due to COVID-19.

For more information on the expanded unemployment benefits, visit nj.gov/labor

This is a status report provided by the New Jersey State Bar Association on recently passed and pending legislation, regulations, gubernatorial nominations and/or appointments of interest to lawyers, as well as the involvement of the NJSBA as amicus in appellate court matters. To learn more, visit njsba.com.