April 13, 2020

Reminder: U.S. COVID-19 Paid Leave Requirements Now In Effect

The new federal paid leave requirements for U.S. companies with less than 500 employees officially went into effect on April 1. Under the Families First Coronavirus Response Act (FFCRA), eligible employers will need to provide two weeks of paid leave for workers affected by COVID-19 and up to ten weeks for workers that need to care for a child due to school closures. Read the full temporary rule here and more about the U.S. Department of Labor’s employer requirements here.

Employers will have to post notice of these changes in a similar manner to other poster requirements.

As a reminder, the DOL Wage and Hour Division (WHD) has granted a temporary non-enforcement period until April 17, 2020. Businesses with fewer than 50 employees and those that produce medical products or COVID-19-related medical equipment may be eligible to receive exemptions from the paid leave requirements. Read more about exemptions here.

For an overview of the tax credits for businesses that provide paid leave, see this IRS announcement.