Coronavirus Small Employers Emergency Paid Leave Exemption

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With each twist and turn, we are hoping to keep you updated and informed. If you have questions, please contact us at (480) 744-6621 or at request@counxel.com

Exemption from Emergency Paid Leave Laws

The Department of Labor just issued new guidance on when an employer with less than 50 employees is exempt from certain portions of the Emergency Paid Sick Leave and all of the Emergency FMLA laws as follows:

When does the small business exemption apply to exclude a small business from the provisions of the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act?

An employer, including a religious or nonprofit organization, with fewer than 50 employees is exempt from providing (a) paid sick leave due to school or place of care closures or child care provider unavailability for COVID-19 related reasons and (b) expanded family and medical leave due to school or place of care closures or child care provider unavailability for COVID-19 related reasons, when doing so would jeopardize the viability of the small business as a going concern. A small business may claim this exemption if an authorized officer of the business has determined that:

• The provision of paid sick leave or expanded family and medical leave would result in the small business’s expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity.

• The absence of the employee or employees requesting paid sick leave or expanded family and medical leave would entail a substantial risk to the financial health or operational capabilities of the small business because of its specialized skills, knowledge of the business, or responsibilities.

• There are not sufficient workers who are able, willing, and qualified, and who will be available at the time and place needed, to perform the labor or services provided by the employee or employees requesting paid sick leave or expanded family and medical leave, and these labor or services are needed for the small business to operate at a minimal capacity.

If I am a small business with fewer than 50 employees, am I exempt from the requirements to provide paid sick leave or expanded family and medical leave?

A small business is exempt from certain paid sick leave and expanded family and medical leave requirements if providing an employee such leave would jeopardize the viability of the business as a going concern. This means a small business is exempt from mandated paid sick leave or expanded family and medical leave requirements only if the:

• Employer employs fewer than 50 employees.

• Leave is requested because the child’s school or place of care is closed, or child care provider is unavailable, due to COVID-19-related reasons.

• An authorized officer of the business has determined that at least one of the three conditions described in the question above is satisfied.

The Department encourages employers and employees to collaborate to reach the best solution for maintaining the business and ensuring employee safety.

If you need help determining if you qualify as an exempt entity, please contact us.

Implementation Needs to Happen Now

The new Emergency Paid Sick and FMLA Leave laws go into effect on April 1, 2020. That is right around the corner. Even exempt small businesses, as defined above, are required to provide Emergency Paid Sick Leave if someone is sick, awaiting testing, taking care of a family member, or quarantined due to COVID-19.

For all others not exempt, it is time to implement all of the necessary new Emergency Paid Sick and FMLA Leave policies into your workplace, especially now with Arizona schools officially closing for the rest of the school year (link). With that, whether working on your own or through the purchase of the “Emergency Leave Packet – Policies and Forms,” we have available at a flat rate, we suggest you prepare to implement the new leave laws into your company.

Care Act Qualifying SBA Loans

We are preparing information as to how you can apply for a Care Act SBA Loan. For basic information regarding who qualifies for a loan, please review the information we previously provided on March 27, 2020 (link).

Contact Counxel Legal Firm

If you would like our assistance in preparing your Care Act loan applications, please contact us at (480) 744-6621 or at request@counxel.com. Don’t forget to check out the good things that others are saying about the services they received from Timothy Coons on Google.

This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Counxel Legal Firm. Please contact request@counxel.com or (480) 744-6621 to request specific information for your situation.

*Conveniently located off the 101 Freeway and the US 60 in the middle of Phoenix, Scottsdale, Tempe, Chandler, Gilbert, Mesa, and Queen Creek!

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