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New Families First Coronavirus Bill Will Exempt Some Small Businesses From Paying Employees, Self-Employed Workers Eligible For Paid Sick Leave Benefits

by RaquelHarris
March 17, 2020
Reading Time: 2 mins read
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Fight Procrastination Day Is The Perfect Time To Create New Habits & Break The "I'll Do It Later" Cycle

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The country is in a state of emergency amid the coronavirus COVID-19 pandemic, forcing businesses to close and leaving many out of work without paid sick leave.

About a quarter of workers in the U.S. are out of work with no paid sick leave. On Saturday, the House passed the Families First Coronavirus Response Act, a bill that, if passed, would give paid sick leave to workers who did not have it and extend the paid sick leave for workers who were only given a few days, the Washington Post reports. The bill would only apply to those staying home because of the coronavirus.

The bill would include two weeks off of paid sick leave at 100 percent of the person’s regular salary and go up to $511 per day. In addition, it would also give people 12 weeks of paid family and medical leave at 67 percent of the person’s normal income, up to $200 per day. However, the bill did not include everyone, and as a result, the House has since amended it as of Monday night.

Small to middle-sized companies will have to pay their workers amid the outbreak, but this rule may not include companies with less than 50 employees and health care providers. This includes nursing homes and hospitals. Day-by-day workers and self-employed workers will receive the benefits of the bill as a tax credit. It appears that people who work at companies with more than 500 employees will have to lean on the business’s policy for out-of-work compensation, as these companies were not mentioned in the bill. According to the Labor Department, 89 percent of workers at companies with more than 500 employees are supplied with some form of paid sick leave, which usually includes eight days.⠀⠀⠀⠀⠀⠀⠀⠀

The bill compels all government employers to provide employees with paid sick and family leave, with all of the new legislation’s benefits; it includes part-time and “multi-employer” workers as well. If you are a self-employed or gig worker like Lyft and Uber drivers, caterers or event planners, you will be eligible for a tax credit of up to two weeks of sick pay at your average pay and 12 weeks of family leave pay at two-thirds your normal rate, the Post reports.

Anyone who hasn’t caught the coronavirus can still receive benefits of two paid weeks of sick leave, but you have to have been told to quarantine, been exposed to the virus, showing symptoms, or pursuing a coronavirus test or preventive care. These benefits will cover a person for a year. The bill came out $105 billion to cover its costs, according to the Joint Committee on Taxation.

The benefits will predominantly be paid through tax credits, and Treasury Secretary Mnuchin said on Sunday that they are pledging to get the process started this weekend as soon as possible.

Sick Leave
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