FFCRA Exemption for employers with under 50 employees.
Updated: Mar 31
There is an exemption for employers with under 50 employees. If providing childcare related paid sick leave and expanded family and medical leave would jeopardize the viability of your business, you can elect for the small business exemption.
In order to exempt your business from the child-care related paid leave you must determine if one of the following three reasons below describe your business:
"The provision of paid sick leave or expanded family and medical leave would result in the small business’s expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity;"
"The absence of the employee or employees requesting paid sick leave or expanded family and medical leave would entail a substantial risk to the financial health or operational capabilities of the small business because of their specialized skills, knowledge of the business, or responsibilities; or"
"There are not sufficient workers who are able, willing, and qualified, and who will be available at the time and place needed, to perform the labor or services provided by the employee or employees requesting paid sick leave or expanded family and medical leave, and these labor or services are needed for the small business to operate at a minimal capacity."
While the exemption helps small businesses when an employee needs to take leave because they are unable to work due to their son's or daughter's school or childcare provider being closed due to COVID-19, small business owners are still required to provide Paid Sick Leave for all other qualifying reasons.