Ep. 4: How does COVID-19 apply to the FMLA?
Part 2
March 31, 2020
Episode details
As the COVID-19 pandemic continues to disrupt life and businesses in the U.S., we explore two key federal resources for organizations with fewer than 500 employees. Ellen McCann offers recent legislative updates to the Families First Coronavirus Response Act (FFCRA). Laura Kilmartin then unpacks the Paycheck Protection Program, a Small Business Administration (SBA) lending program designed to encourage businesses to keep their employees on the payroll.
Top takeaways
- The Department of Labor has offered further guidance on the Families First Coronavirus Response Act – check their FAQ page. On April 9, we will release a special episode to cover the key updates. [02:55]
- The Paycheck Protection Program (PPP), administered by the SBA, is applicable to any small business with fewer than 500 employees, including sole proprietorships, independent contractors, self-employed persons and tax-exempt non-profits and veterans’ organizations. Several other employer types are designated by the SBA as small businesses even if they have more than 500 employees — check their website for updates. [05:17]
- A loan under the PPP has a two-year maturity and 1% interest rate. However, it is intended to act like a grant and will be forgiven if all employees are kept on the payroll for eight weeks and the money is only used for authorized purposes. [07:21]
- The rules are fairly simple: Loan proceeds must be used for payroll costs, including insurance premiums; mortgage interest; rent; and utilities. A total of 75% of the forgiven amount must have been used for those costs, and forgiveness is based on the employer maintaining or quickly rehiring all employees and maintaining salary levels. [10:02]
- Any SBA lender or federally insured bank or credit union is eligible to issue loans through this program. Check with your local lender to see if they are participating in the program. Fill out a loan application before June 30, 2020, but the sooner the better — limited funds are available. [14:07]
- Check the Small Business Administration website for more information.
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Featured speaker
Ellen McCann
Assistant Vice President, Leave Solutions — Unum Group
Ellen McCann serves as a leading expert in applying benefits and benefits technology to power modern solutions to more effective employee leave programs, stronger regulatory compliance and enhanced digital HR transformation. In this role, she combines more than 30 years of employment law experience with practical knowledge of the complexities of leave and accommodation management to help develop and create solutions that enable employers to address the challenges of leave and accommodations. She is an acclaimed national speaker on leave management issues including FMLA and ADA, and is a certified trainer for SHRM and CE credit.
About the host
Clare Morin
Unum Content Marketing Manager
Clare Morin is the Content Marketing Manager at Unum and a journalist who’s spent the last 20 years interviewing hundreds of thought leaders on topics ranging from wellness to culture, finance, human resources and technology. Born in the UK, raised in Hong Kong and based in the U.S. since 2009, she brings a global outlook to the HR Trends studio.
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