DOL Now Fully Enforcing FFCRA Paid Leave Rules for Coronavirus

Apr 28, 2020 | COVID-19, Domestic Workers' Rights, GTM Blog

The Department of Labor’s nonenforcement period for following paid leave requirements under the Families First Coronavirus Response Act has ended. Household employers need to comply with the law’s rules or face fines and other penalties.

After observing a 30-day nonenforcement period to help employers come into compliance with new paid leave rules, the U.S. Department of Labor (DOL) has announced that it is fully enforcing all provisions of the Families First Coronavirus Response Act (FFCRA).

The FFCRA requires private employers with fewer than 500 employees – including household employers – to provide paid leave for their employees,
either for the employees’ own health needs or to care for others, for reasons related to the coronavirus (COVID-19) pandemic. These requirements apply
for employee leave taken between April 1 and December 31, 2020.

Household employers can receive a dollar-for-dollar tax credit on any paid leave provided under FFCRA.

Temporary nonenforcement period

The DOL had previously indicated that it would not take enforcement actions against covered employers for violations occurring before April 17, 2020, as
long as these employers made reasonable, good faith efforts to comply with the law. However, the nonenforcement policy did not apply if a violation was
willful or if an employer failed to provide a written commitment to future FFCRA compliance or remedy a violation after receiving a DOL notice.

Current enforcement policy

Now that the temporary policy has expired, the DOL is fully enforcing the FFCRA. Employers may still face retroactive penalties for violations committed during the nonenforcement period under certain circumstances.

According to the DOL’s frequently asked questions about the FFCRA, the agency will retroactively enforce violations back to the effective date of
April 1, 2020, if employers have not remedied the violations.

Penalties for FFCRA violations include civil lawsuits and criminal charges punishable by imprisonment and fines of up to $10,000.

Not paying legally or behind on nanny taxes?

If you haven’t been paying your household employee on the books or you’ve gotten behind on your household employment tax obligations, your employee may not be eligible for paid leave benefits and you could face fines, penalties, and payment of back taxes for non-compliance. GTM Payroll Services offers back tax work at reasonable rates. We can get you caught up with your nanny taxes and set up your employee with legal pay going forward. Call (800) 929-9213 for a no-obligation consultation with a household employment expert.