July 23, 2020
Do we get penalized on forgiveness for employees who went on FMLA (birth of child) or pregnancy disability (i.e. non-COVID or business-related reasons)?
Posted by Armanino LLP Webmaster
Though FMLA is not specifically addressed in the forgiveness application or guidance to date, it is a reasonable interpretation to include FMLA in the exclusion category of “asked for and received a reduction in hours”, in this case to 0 hours. Thus, you would not be penalized.