COVID-19 Paid Leave and Employer Relief Provisions

Employers with up to 500 employees will be required to provide expanded sick leave and family medical leave for specific reasons related to COVID-19, including federal, state, and local government quarantines or isolation orders and caring for a child whose school has closed, and more. By April 2, the U.S. Department of Labor must write the guidelines for implementation, and will also set the date on which the requirements take effect. In the meantime, the U.S. Department of Labor has posted an overview of coronavirus-related topics, and an outline of the paid leave requirements.

Those employers required to provide emergency paid leave are eligible to recover the costs of employee leave and health insurance through a refundable payroll tax credit for which nonprofits are eligible. Employers with fewer than 50 employees may be eligible for an exemption from paid leave requirements if providing the paid leave threatens the viability of the organization. The U.S. Department of the Treasury is currently writing further guidelines for implementation. In the meantime, the agency provides an overview of employer relief provisions.

The law provides for equivalent emergency paid sick leave and family medical leave for self-employed workers through an individual refundable tax credit. The U.S. Department of Treasury is currently writing guidelines for how self-employed individuals may claim the credit. Guidelines are expected to be released in the week of March 22.