12 - Extension of the Families First Coronavirus Relief ActItem No. 12
TO: Mayor & City Council
FROM: Grayson Path, City Manager
SUBJECT: Families First Coronavirus Response Act (FFCRA)
Granting of Extension
DATE: January 11, 2021
BACKGROUND:
The Federal Government approved the FFCRA in response to the CoVid-19 Pandemic which
required certain employers to provide their employees with paid sick leave and expanded family
and medical leave for specified reasons related to CoVid-19. These provisions were in place from
April 1, 2020 — December 31, 2020.
Employees were given up to 80 hours of paid sick leave in addition to their normal vacation,
holiday, sick leave that would be paid at their regular rate of pay under certain conditions and up
to certain amounts — please see the attached flyer for specifics.
STATUS OF ISSUE:
This FFCRA requirement has now expired and to the best of our knowledge and research, it was
not continued as part of the recently approved $900 Billion Relief Bill signed on December 27,
2020. Under this bill though, employers who pay income tax can receive a tax credit if they
voluntarily continue to provide the FFCRA through March 31, 2021. As a City, the tax credit
would not apply to us.
We are seeing other employers, including schools and municipalities, voluntarily extending the
FFCRA Program given CoVid-19 continues to be a serious issue in our communities, perhaps
more so now than was seen in prior months with the recent spikes. The City continues to have
employees impacted by CoVid-19 and needing to take time off for testing and possibly even
quarantine periods.
Current payroll shows 96 employees having utilized the FFCRA for a total of 5,270.25 hours.
Note that we still have one more week in December being processed through payroll that is not
reflected in these numbers.
BUDGET:
The original FFCRA was not funded by the Federal Government. Private industries were given
the option of a tax credit, but public entities did not have an added revenue stream. The Federal
Government then passed a large stimulus which resulted in the Coronavirus Relief Funding (CRF)
that the City was allocated. This funding could be used to cover those expenses. As was discussed
at the December 14, 2020 City Council Meeting, the City, working with its third party consultant,
is working with the State (TDEM) to receive our entire allocation of approximately $1.4 million.
The City has been tracking the number of hours used under the FFCRA so that we could know
when the 80 hour cap was reached and sick leave would need to be applied. This will be discussed
further at the January 25, 2021 City Council meeting, but the City can either reimburse itself for
these hours using the CRF Program Funding, or run it through payroll. The City was under its
FYI 9/20 budget, which means the budget was able to withstand the added pressure of the FFCRA
hours. Nevertheless, there is still a financial impact now and in the future by these additional hours
being given that may warrant using some of the CRF Program Funding to cover these expenses.
At January 25th, the City Council will discuss whether to apply the CRF Program Funding towards
these hours or not.
Current payroll shows $88,395.23 having been spent towards FFCRA hours. Again, that excludes
the final week in December which is being processed under current payroll.
OPTIONS:
1. Whether or not to extend the FFCRA Program through March 31, 2021 (or some other
date).
2. Whether or not this is simply an extension of the FFCRA such that any hours used in 2020
are no longer available, or if employees have a new bank of 80 hours.
3. Whether or not to make any approval of the FFCRA retroactive to January 1, 2021 or start
it from tonight.
4. Whether or not to apply the CRF Program Funds to cover these hours, thus reimbursing
the City for any FFCRA hours used.
RECOMMENDATION:
Recommendation is to extend the FFCRA Program through March 31, 2021, to be re-evaluated at
that time, to make it retroactive to January 1, 2021, and to simply make it an extension and not a
new bank of hours for hours already used.
The City Council can also decide whether to apply CRF Program Funding towards the hours
tonight or discuss it at the next meeting when the City Manager presents a more complete total of
expenses for your consideration. At this point, there appears to be plenty of CRF Program Funding
to cover the hours used thus far if that is the direction the council goes, so there is not an urgency
to decide this tonight.
The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their
employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19.
These provisions will apply from April 1, 2020 through December 31, 2020.
111PAID LEAVE ENTITLEMENTS
Generally, employers covered under the Act must provide employees:
Up to two weeks (80 hours, or a part-time employee's two-week equivalent) of paid sick leave based on the higher of
their regular rate of pay, or the applicable state or Federal minimum wage, paid at:
• 100% for qualifying reasons #1-3 below, up to $511 daily and $5,110 total;
• % for qualifying reasons #4 and 6 below, up to $200 daily and $2,000 total; and
• Up to 12 weeks of paid sick leave and expanded family and medical leave paid at % for qualifying reason #5
below for up to $200 daily and $12,000 total.
A part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work
over that period.
ELIGIBLE EMPLOYEES
In general, employees of private sector employers with fewer than 500 employees, and certain public sector
employers, are eligible for up to two weeks of fully or partially paid sick leave for COVID-19 related reasons (see below).
Employees who have been employed for at least 30 days prior to their leave request may be eligible for up to an
additional 10 weeks of partially paid expanded family and medical leave for reason #5 below.
111 QUALIFYING REASONS FOR LEAVE RELATED TO COVID-19
An employee is entitled to take leave related to COVID-19 if the employee is unable to work, including unable to
telework, because the employee:
1. is subject to a Federal, State, or local quarantine or
isolation order related to COVID-19;
2. has been advised by a health care provider to
self -quarantine related to COVID-19;
3. is experiencing COVID-19 symptoms and is seeking
a medical diagnosis;
4. is caring for an individual subject to an order described
in (1) or self -quarantine as described in (2);
11ENFORCEMENT
5. is caring for his or her child whose school or
place of care is closed (or child care provider is
unavailable) due to COVID-19 related reasons; or
S. is experiencing any other substantially -similar
condition specified by the U.S. Department of
Health and Human Services.
The U.S. Department of Labor's Wage and Hour Division (WHD) has the authority to investigate and enforce compliance
with the FFCRA. Employers may not discharge, discipline, or otherwise discriminate against any employee who
lawfully takes paid sick leave or expanded family and medical leave under the FFCRA, files a complaint, or institutes a
proceeding under or related to this Act. Employers in violation of the provisions of the FFCRA will be subject to penalties
and enforcement by WHD.
For additional information
WAGE AND HOUR DIVISION 1 to file a complaint:
9243
UNITED STATES DEPARTMENT OF LABOR Y: 1-81487 -5627
TTY: 1-877-889-5627
LIS dol. ov/a encies/whd
W11 T4222 REV WY.210