Congress passes coronavirus bill expanding paid leave. Are you eligible?
Congress passed a new law expanding paid sick leave and family leave for employees of companies with fewer than 500 employees who have been impacted by the coronavirus pandemic.
President Donald Trump signed the bill Wednesday night.
The bill also includes provisions to make testing for the virus free and millions for expanded nutrition programs for children, the poor and the elderly. But the widest impact may come from its leave provisions, particularly with schools closed across North Carolina.
The bill requires that companies give full-time employees 80 hours of paid sick leave and also provide part-time employees with some paid leave. It applies to anyone who has coronavirus, is in quarantine or caring for someone in quarantine or is caring for a child under 18 whose school is closed as a result of the outbreak.
There are caps on the payouts: $511 per day for employees with the virus or in quarantine and $200 per day for employees caring for someone in quarantine or a child.
Employers are eligible to be reimbursed for their costs.
“That’s going to help a lot of families. That’s the bottom line,” said Anna Gassman-Pines, an associate professor at Duke University’s Sanford School of Public Policy. “The general evidence on paid family leave is that it provides a lot of health benefits, especially for women and families.”
North Carolina businesses are not required to provide sick leave — paid or unpaid. A 2015 study found that nearly 1.5 million North Carolina workers did not have paid sick leave.
The bill also requires private companies with fewer than 500 employees and government employers to pay workers for most of the 12 weeks of leave they are allowed under the Family and Medical Leave Act if their child’s school or daycare is closed. The pay is again capped at $200 per day and employers will be fully reimbursed.
By providing financial help, Gassman-Pines said, it can also help prevent the abuse and neglect of children, which tends to go up as a result of money troubles.
“Severe financial strain puts children at risk for maltreatment,” she said.
Self-employed workers are included in the provisions, which end on Dec. 31.
“I am proud we were able to set partisan differences aside and work together to pass these bipartisan solutions to help slow the spread of coronavirus by ensuring access to free testing to all North Carolinians and providing a stronger temporary social safety net,” Sen. Thom Tillis said in a statement after the Senate vote Wednesday.
Efforts to slow down the spread of the coronavirus have had wide-ranging impacts on the national and state economy. Heeding local, state and federal government guidance, many people are working from home. Businesses have already been hit hard, and thousands are seeking unemployment benefits. The government has taken drastic measures, including closing bars and restaurants. The stock market has dropped.
And federal lawmakers have responded with big steps of their own.
“This is where we really need everything on deck,” said Mike Walden, an economist at N.C. State. “You can’t let people flounder or let businesses go bankrupt. If there ever is a time when government borrowing and government intervention is needed, the time is now.”
How NC voted
The Senate passed the bill 90-8 on Wednesday afternoon. Sens. Richard Burr and Tillis, both North Carolina Republicans, voted in favor of the bill. In a sign of the times, the two senators that did not vote — Sen. Rick Scott of Florida and Sen. Cory Gardner of Colorado — were in self-quarantine after exposure to someone with the virus.
“As the coronavirus outbreak continues to develop, we have two critical goals: to slow the virus’ spread and to provide immediate, targeted relief to those impacted. Stopping coronavirus isn’t just a job for public health officials — it’s a job for all of us,” Burr said in a statement.
The House passed the measure least week 363-40. North Carolina Republicans Dan Bishop and Ted Budd voted against the bill, while Mark Meadows — who is transitioning to becoming White House chief of staff — did not vote.
Bishop said the bill “had a fundamental defect.” Budd said the package “was deeply flawed in both process and substance.” Both were concerned about its impact on small businesses. The bill underwent technical corrections after the House passed it and before it got to the Senate.
Previously, Congress passed an $8.3 billion package aimed at providing research and vaccine development as well as giving aid to states to deal with the coronavirus pandemic.
Stimulus payments coming?
Lawmakers and the Trump administration are already in discussions about a third package, one that is expected to have a price tag of more than $1 trillion. The package, which is still coming together, could include direct payments to Americans and support payments for industries hit particularly hard by the outbreak, like the airline and hotel industries.
Walden said the outbreak presents a more difficult challenge for policymakers than the 2008 financial crisis and recession because the measures taken to slow down the spread of the virus are harmful to the economy.
“This time the initial policy is leading to people not spending.” said Walden, who estimated a total cost to the federal government of more than $2 trillion for its coronavirus-related spending packages.
The Senate’s top Republican said the chamber will remain in session until it passes a third spending package.
“This is the second relief package Congress has passed to help American families and small businesses during this unprecedented challenge, and will not be the last,” Burr said.
Tillis is interested in a package that includes additional health and safety measures as well as economic stabilization.
“Congress is united against a common enemy and we will work tirelessly to protect the physical and economic health of the American people,” he said.
Cal Cunningham, Tillis’ Democratic challenger in November’s election, previously called for passage of the second spending package.
In a third bill, he said, he wants to see greater access to testing, a boost to response capabilities and economic relief for families and small businesses, including loan relief or deferment on all federal loans, including student loans, and child-care payment help for medical professionals and first responders.
“Free testing, targeted paid sick leave, and expansions of unemployment insurance and food assistance should allow many workers and families to breathe a sigh of relief,” Cunningham said.
This story was originally published March 18, 2020 at 7:41 PM.
