Notes on Families First Coronavirus Response Act, in reading order
- Section 1101. Schools are incentivized to remain closed more days.
- Titles II-IV, VI. Small amounts given to agencies to be spent at the Cabinet member’s discretion.
- Title V. $1 billion for HHS to pay COVID-19 expenses for the uninsured.
- Titles I and II. School lunch money is now available when school is closed “due to COVID-19.”
- This incentivizes to schools remain closed more days, especially those getting the most school lunch money.
- Will add the learning gap between poor and affluent schools.
- Section 3102. “Emergency Family and Medical Leave Expansion Act.” Employees at small businesses are entitled to be out of work with pay if they have a child at a school or day care closed due to COVID-19.
- Here, a small business is less than 500 employees, but with certain exceptions for businesses less than 25 employees.
- The duration of leave is capped at 12 weeks.
- The pay must be at least 2/3 of normal salary, capped at $200 per day and $10,000 in the aggregate (see also here), which does not bind unless the annual salary exceeds $60K or so.
- Even an employee who has been on the payroll only 30 calendar days (as few as 20 working days) can get the full pay for 12 weeks.
- Employers get payroll tax credits for these payments (Division G).
- The provision
- sharply reduces the financial reward to work for such employees,
- and further incentivizes schools (that are responsive to parental demands) to remain closed.
- Section 4102. $1 billion for state unemployment programs.
- Section 4105. Full Federal funding of extended benefits. This means that employers do not have to help pay for extended benefits, and therefore amounts to an enhanced subsidy for layoffs.
- Emergency Paid Sick Leave Act
- Covers the first 10 days of the leave provided in Division C.
- The child/dependent care pathway has the same pay minimums and caps.
- Other pathways, such being in quarantine, are full salary with $511 per day cap (that is $128K annual salary).
- Children in school closed school or daycare is not the only pathway to eligibility.
- Also regulates employers:
- They cannot ask sick employees to help find a replacement during their absence
- They cannot discharge or discipline employees for either taking leave or instituting any proceeding under the Act
- Health insurance must cover COVID-19 tests. (Short-term plans are not considered insurance for this purpose).
- Employers may claim payroll tax credits for moneys paid to employees under Divisions C and E.
Source: http://caseymulligan.blogspot.com/2020/03/notes-on-families-first-coronavirus.html
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