CLARIFICATION OF PAID SICK LEAVE AND FMLA BENEFITS UNDER FFCRA

The FFCRA imposes on certain employers paid sick leave and expanded family and medical leave obligations relating to the COVID-19 pandemic, effective as of April 1, 2020. Specifically, the FFCRA requires that certain employers provide to its eligible employees, under specified circumstances:

The FFCRA states that an employer may, but is not required to, satisfy its obligations under the FFCRA to provide the required leave benefits through its participation in a multiemployer plan, such as the Welfare Plan, if such multiemployer plan allows the required leave benefits to be paid and the employer contributes to the multiemployer plan for hours of leave benefits.

The existing provisions of the Welfare Plan do not allow the payment of leave benefits required by the FFCRA. The Welfare Plan has not received any employer contributions to fund leave benefits required under the FFCRA, and the Welfare Plan is not otherwise administratively able to provide such leave benefits. The Board of Trustees of the Welfare Plan has therefore determined that the Welfare Plan will not provide the leave benefits required by the Act and employers must do so if required under the FFCRA. Please keep in mind that any employer who pays leave benefits required under the FFCRA may be eligible to claim a fully refundable tax credit for payments of qualified wages and health plan expenses.

For any hours of paid sick leave benefits or any family and medical leave benefits (whether paid or unpaid) provided under the FFCRA, an employer is required to maintain medical coverage for such employee and therefore must make contributions to the Welfare Plan for such leave benefits. The Welfare Plan has established a special reporting form for employees taking leave under the FFCRA to be submitted monthly together with the regular reporting form. To obtain a special reporting form, please click on links shown below. Note that only contributions to the Welfare Plan are required to be made for the employee on approved leave under the FFCRA, and no other fringe benefit contributions will be required or collected.

FFCRA Reporting Form for period April, 2020 to May, 2020

FFCRA Reporting Form for period June, 2020 to December, 2020