DRS Email 20-005, HR 6201 – Families First Coronavirus Response Act

Date: April 1, 2020

Applies to: All Employers

Subject: DRS Email 20-005, HR 6201 – Families First Coronavirus Response Act

Congress recently passed HR 6201, the Families First Coronavirus Response Act (FFCRA or Act). The two sections of the Act that impact retirement reporting are:

• Section 3101 – Emergency Family and Medical Leave Expansion Act
• Section 5101 – Emergency Paid Sick Leave Act

The Act requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The U.S. Department of Labor’s Wage and Hour Division administers and enforces the new law’s paid leave requirements. These provisions will apply from the effective date through Dec. 31, 2020.

Generally, the Act provides that employees of covered employers are eligible for:

• Two weeks (up to 80 hours) of paid sick leave at normal rate of pay – when the employee is quarantined and unable to work because of COVID-19.
  
• Two weeks (up to 80 hours) of paid sick leave at 2/3 rate of pay – when the employee is caring for someone else because of COVID-19.
  
• Up to an additional 10 weeks of paid expanded FMLA at 2/3 rate of pay – when the employee must care for child who is home because of COVID-19.

Entitlement per FFCRA	Reportable to DRS?
Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to federal, state, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or	Yes, because the leave is being paid at the employee’s regular rate of pay.
Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to federal, state, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor; and	No, not at 2/3 regular rate of pay. Note: employees are eligible to purchase optional service credit from DRS for the period of time they were paid at 2/3 normal rate. Any accrued leave the employee utilizes at normal rate of pay is reportable to DRS. Should your agency opt to provide leave to employee at their full rate of pay, it would be reportable.
Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.	No, not at 2/3 regular rate of pay. Note: employees are eligible to purchase optional service credit* from DRS for the period of time they were paid at 2/3 normal rate. Any accrued leave the employee utilizes at normal rate of pay is reportable to DRS. Should your agency opt to provide leave to employee at their full rate of pay, it would be reportable.

*Retirement system members have the option to apply for service credit for periods of public service or a leave of absence that fall under rules other than normally accumulated service credit. This is referred to as optional service. Optional service can be acquired by paying contributions within a specific time period immediately after returning to normal active service. The member should contact DRS