Dispatch #18 - Closed Job Sites Do Not Qualify an Employee for Paid Sick and FMLA Leave

Recent guidance by the Department of Labor (DOL) suggests that a lack of work, including job sites that have closed down, does not qualify an employee for paid sick and FMLA leave under the Families First Coronavirus Response Act (FFCRA).
 
I’m not an expert on these regs, but it does appear that many fewer employees will be eligible, so it’s worth understanding how the regs apply to your company’s specific situation.
 
The employee has to be in quarantine/isolation, sick or with COVID-19 symptoms, or taking care of a child whose school was closed due to COVID-19. See the FAQ #s 23 through 28 here and this poster for details. The FAQs address worksite closures, furloughs, and intermittent work, both before and after April 1st.
 
FAQs 58 and 59 speak of the FFCRA exemption for companies that employ fewer than 50 people.
 
The upshot of these limitations is that there’s less risk for a firm that can’t afford to “front” the leave pay and wait several weeks (or months) for reimbursement through payroll tax credits or refunds.
 
And for firms that are inclined to pay the full benefit to employees anyway, confirm that the reimbursements will not be disallowed if the employees were not eligible and/or did not adequately document their claim for benefits.

Need help with this or other financial matters faced by construction contractors? Let’s talk!

David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.