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May a PPP loan be used to pay for sick leave beginning February 15, 2020, and ending June 30, 2020?

Posted by Bonita Hatchett-Bodle

Apr 20, 2020 3:27:40 PM

Yes, but not for sick leave for which an employer receives a tax credit under the Families First Coronavirus Response Act (FFCRA). The SBA FAQs confirmed that PPP loans may be used during the eight-week period beginning February 15, 2020, and ending June 30, 2020, in order to cover paid sick leave. However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under Sections 7001 and 7003 of the FFCRA. For this reason, the PPP loan cannot be used to cover the employer’s expense for paid sick and childcare leave under the FFCRA for which the employer is granted a 100% tax credit to cover the expense.

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Topics: sick leave, Paycheck Protection Program

How do I determine an employee’s pay for purposes of paid leave?

Posted by Bonita Hatchett-Bodle

Apr 8, 2020 12:24:41 PM

The regular rate of pay used to calculate an employee’s paid leave is the average pay rate over a period of up to six months prior to the date on which the employee takes leave. For employees employed less than six months, the rate of pay is determined by calculating the average rate of pay that the employee has received on a weekly basis since being employed.

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Topics: sick leave, paid leave

How do I count hours worked by a part-time employee for purposes of paid leave?

Posted by Bonita Hatchett-Bodle

Apr 8, 2020 12:23:29 PM

A part-time employee is entitled to leave for his or her average number of work hours in a two-week period, based on the number of hours the employee is normally scheduled to work. If the part-time employee’s normal hours cannot be determined or if the employee’s schedule changes, the employer may use a six-month average to calculate the average daily hours. If the employee has not been employed for at least six months, the employer may use the number of hours that the parties agreed would be performed when the employee was hired. Such a part-time employee may take paid sick leave for this number of hours per day for up to a two-week period. If the part-time employee qualified for expanded family leave, the employee’s paid leave is two-thirds of the daily amount the employee earns for their part-time work.

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Topics: sick leave, paid leave, counting hours

Can an employer deny an employee paid sick leave if the employee was on sick leave due to illness?

Posted by Bonita Hatchett-Bodle

Apr 8, 2020 10:24:02 AM

No. The EPSLA imposes a new leave requirement on employers that is effective beginning on April 1, 2020. If an employee was recently out on FMLA leave due to illness and now has COVID-19, the employer is required to provide paid sick leave if the employee requests the leave on or after April 1, 2020.

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Topics: Coronavirus, COVID-19, EFML, sick leave

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