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One of the top questions for many who aren’t working — but who haven’t necessarily lost their job — is whether or not they should apply for unemployment or take the new federally funded paid sick leave.
Along with extra funding for unemployment, Congress passed a paid sick leave bill earlier this month, the Families First Act, which is meant to help people care for their children or another family member affected by the pandemic.
Sharon Dietrich, litigation director at Community Legal Services in Philadelphia, says the Act gives companies with fewer than 500 employees the option to pay their workers 2/3 of their salary if they take the paid sick time.
"Another would be that a doctor told you to self-quarantine; or another would be that you have symptoms of COVID-19, and you are seeking a medical diagnosis. Another would be that you have care-giving responsibilities, most commonly because your child is home and school is closed or daycare is closed. Or you are taking care of someone who is sick."
And then, Dietrich says, in some more limited circumstances, a recipient can get 10 weeks of paid leave after that.
The employer gets a tax write-off if a worker takes the paid leave.
"Congress is basically reimbursing them, so when the go to pay their quarterly taxes, they get a tax credit for the money," Dietrich explains. "So the employers basically are fronting the money, but they will eventually get it back from the federal government."
So should a worker take it? Dietrich says, maybe not.
"If you have the option of doing unemployment, that is the better path right now," she said.
That’s because of the extra $600 a week the federal government is giving to people who get unemployment assistance.
However, she adds, if a worker feels keeping the job is more solid, go with the paid sick leave.
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