COVID-19 FAQs – Paid Sick Leave

This article presents FAQs related to new Federal Paid Sick Leave policies in light of COVID-19.

Please see below for a current list of COVID-19-related FAQs around Paid Sick Leave.

For additional FAQs, also see:

Updated 3/30/20, 11:09pm.

Which employers must comply with the new sick leave rules?

For private employers, employers with fewer than 500 employees. The law also applies to certain non-private employers.

Are any employees excluded from sick leave?

An employer of a health care provider or an emergency responder may elect to exclude such employees for application of these provisions.

How much sick leave can employees use under this new legislation?

Full-time employees can use up to 80 hours this year. Part-time employees can use the number of hours they normally work, on average, over a two-week period, which must be used before the end of the year.

What earning code do I use in Namely to pay my employees for COVID-19 related sick leave?

The following pay codes must be used until March 31, 2021:

Federal Paid Medical Leave - Tier 1
Federal Paid Medical Leave - Tier 2

We are creating two new pay codes that must be used for the Family First Coronavirus Act (FFCRA) extension from April 1 to September 30, 2021:

ARPA Federal Paid Medical Leave - Tier 1
ARPA Federal Paid Medical Leave - Tier 2

Refer to American Rescue Plan Act: Federal Paid Medical Leave for more information.

Will this earning code collect the employer-paid portion of Social Security Taxes?

No, this code will not collect for the employer paid portion of Social Security taxes.

Our employees have other sick time accrued provided by our company. Do they have to use that time first?

An employee may use the new federally-mandated paid sick time first. An employer cannot require an employee to use other paid leave provided by the employer first.

If an employee does not use this federal sick time this year, does it carry over to 2021?

Federal paid sick time does not carry over from one year to the next. It expires on December 31, 2020.

My employee just resigned—do I have to pay them for this sick leave?

Employers are not required to reimburse or payout paid sick time provided by this Act upon the employee’s separation from his/her employment.

When does this law expire?

The American Rescue Plan Act (ARPA) extends Federal Paid Medical Leave earnings, which can now be used until September 30, 2021.

How much sick leave can be used under this new legislation?

How much money can I get paid for sick leave?

The paid sick time shall not exceed:

$511 per day and $5,110 in total for cases 1 through 3 above. The pay must be provided at the employee’s regular rate of pay or the minimum wage, whichever is greater.
$200 per day and $2,000 in total for cases 4 through 6 above. Additionally, the pay must be provided at two-thirds of the employee’s regular rate of pay or the minimum wage, whichever is greater.

One of my employees has COVID-19—do they have to give us a doctor’s note?

The choice is yours. Please follow your organization’s policy regarding doctor’s notes.

Can an employee be disciplined for using this sick time?

An employer may not discharge, discipline, or discriminate against an employee who takes this leave, files a complaint under this Act, or testifies in a proceeding.

What are the applicable reasons for sick leave?

An employer shall provide each employee with paid sick time if:

The employee is subject to a federal, state, or local quarantine or isolation order due to COVID-19.
The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
The employee is caring for an individual who is subject to an order as provided in point #1, or has been advised as explained in point #2.
The employee is caring for a son or daughter if the school or place of care for the child has been closed, or the child care provider is unavailable, due to COVID-19 precautions.
The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of Treasury and the Secretary of Labor.

Which employers must comply with the new sick leave rules?

For private employers, employers with fewer than 500 employees. The law also applies to certain non-private employers.

Can the new earnings for Sick Leave or Family Medical Leave be paid at an hourly rate?

No, these can only be distributed as flat dollar amounts.

For hourly employees, please use the number of hours and their corresponding rate* to determine the amount they should be paid.

*For Federal Paid Sick Leave, earning codes 1-3 are to be paid at the regular rate of pay (or at the minimum wage, whichever is greater), while earning codes 4-6 are to be paid at 2/3 the regular rate of pay (or the minimum wage, whichever is greater). Please see Federal Paid Sick Leave under COVID-19 for more information.

Can employees be paid in excess of FMLA or Sick Leave provided by the Families First Coronavirus Response Act?

The regulations do not explicitly prohibit companies from paying employees in excess of FMLA or Sick leave. However, any excess payments will not be eligible for business credit.

Please note: the pay codes Namely will soon offer to process leave payments from the FFCRA have an annual limit, as mandated by the Federal Government. Namely will not allow you to surpass the annual limit with any leave codes. The codes do not validate the daily limit.

If you wish to pay an employee over and above the daily or annual limit, it is up to your discretion. Any payments in excess of these limits would require the use of an additional pay code.

Namely does not provide legal, accounting, or tax advice, and Namely Help Community content should not be relied on for legal, accounting, or tax advice. Please consult with professional counsel for any tax, accounting or legal questions.