Page 1 of 1

Who pays employees while off for COVID if less than 50 employees

Posted: Tue Mar 24, 2020 12:59 pm
by lethakeslar
Per Federal regulations issued Friday for Small Business /COVID , if less than 50 employees (FMLA not apply) and it is a hardship/business liability for the employer to pay wages while plant closed , who is responsible for paying the employees ? How long must employer continue to pay employee benefits if FMLA doesn't apply?


The "small business exemption" for employers with 50 or less employees is not yet a law. The Dept of Labor is supposed to provide insight on that, but has not done so. So, you need to comply with the (Family First Act) mandate that takes effect April 2.

As far as benefits go, it depends on your existing benefits policy. If eligibility ends when employee is not working - even if on leave - COBRA kicks in. If employee maintains eligibility under employer plan while on leave, you would continue paying benefits.

-Alan Rothenbuecher