Exemptions of Families First Coronavirus Response Act (FFCRA)

Disaster Response
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Contact: J.P. Delmore
(202) 266-8412
jpdelmore@nahb.org

On March 28, the Department of Labor (DOL) clarified that small businesses with less than 50 employees are exempt from two aspects of the paid leave requirements:

  • A small business is exempt from certain paid sick leave and expanded family and medical leave requirements if providing an employee such leave would jeopardize the viability of the business as a going concern. This means a small business is exempt from mandated paid sick leave or expanded family and medical leave requirements only if the:
    • Employer employs fewer than 50 employees;
    • Leave is requested because the child’s school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons; and
    • An authorized officer of the business has determined that at least one of these three conditions is satisfied:
  1. 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;
  2. 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
  3. 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.

The Department encourages employers and employees to collaborate to reach the best solution for maintaining the business and ensuring employee safety.

NAHB is providing this information for general information only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers.

Emergency Paid Sick Leave Under FFCRA

Emergency Paid Sick Leave Under FFCRA

Emergency Paid Sick Leave Under FFCRA

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FFCRA Tax Credits

Tax Credits for Paid Sick Leave and Paid Family and Medical Leave

Tax Credits for Paid Sick Leave and Paid Family and Medical Leave

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Resources for FFCRA Compliance
<p>DOL resources are available for non-federal and federal employees.</p>

Understanding FFCRA

Understanding FFCRA

DOL resources are available for non-federal and federal employees.

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