The business and legal landscape is changing so quickly — almost daily at times — as the government provides guidance or proposed regulations to COVID-19 laws that will impact many business owners and employees.

Employers need to understand the laws and changes and, if applicable, follow all emergency federal, state and local laws and orders, said Betty Graumlich, a partner in the Richmond office of global law firm Reed Smith.

Consider the complexities of the Families First Coronavirus Response Act, which expanded sick leave and family and medical leave for reasons related to COVID-19 from April 1 through Dec. 31. Employees who work for an employer with fewer than 500 employees may be eligible for paid benefits under that law.

According to the new law and Internal Revenue Service guidance, covered employees may be eligible for paid leave for two separate provisions: the Emergency Paid Sick Leave Act, which entitles workers to up to 80 hours of paid sick time when they are unable to work for certain reasons related to COVID-19; and the Emergency Family and Medical Leave Expansion Act, which entitles workers to certain paid family and medical leave.

Employers will be reimbursed through tax credits for paid leave, but companies have to comply with certain requirements set forth by the IRS to be eligible for the reimbursement.

To qualify for reimbursement/tax credits, the eligible employer must substantiate the need for reimbursement by receiving and retaining a written request from the employee regarding the need for leave, and this documentation must be retained by the employer for four years, according to recent IRS guidance.

To substantiate the need for sick leave or family leave credits, the employer must receive and retain a written request from the employee containing the following information:

• The employee’s name;
• The date or dates for which leave is requested;
• A statement of the COVID-19-related reason the employee is requesting leave and written support for such reason such as a doctor’s note; and
• A statement that the employee is unable to work, including by means of telework, for such reason.

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To substantiate the need for paid leave because of a quarantine order or self-quarantine advice, the written statement from the employee needs to include:

• the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and;
• if the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.

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To verify the need for the leave based on a school closing or the unavailability of a child care provider, the written statement from the employee needs to have:

• the name and age of the child (or children) to be cared for;
• the name of the school that has closed or place of care that is unavailable; and
• a representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave.

The IRS also clarified that if an employee claiming an inability to telework because of the need to provide care for any child older than 14 years old during daylight hours, the employee must demonstrate that “special circumstances exist” requiring the employee to provide care.

The Labor Department, which regulates the employer’s obligation to provide paid sick leave, has indicated that employers must provide paid leave to workers who need leave for caregiving due to the coronavirus crisis, including for children age 14 to 17, and in some circumstances age 18 and over. But there remains inconsistency in the law on whether providing this paid leave will be reimbursed through tax credit based on the IRS guidance.

Guidance changes quickly so employers need to check with the IRS, DOL and Virginia Employment Commission regularly to get the latest information.