Today, the Wage and Hour Division of the U.S. Department of Labor answered some key questions arising under the new paid leave provisions of the Families First Coronavirus Response Act. Of most significance is that the effective date of the paid leave provisions is set at April 1, 2020, and employers have no obligation until then to provide such paid leave under the new law. Moreover, any paid leave provided before April 1 cannot be credited to the employer’s obligations beginning on April 1.
The Wage and Hour Division further clarified that the 500-employee threshold for determining coverage is the number of employees at the time the leave is to be taken, and it also stated the rules for when employees of related and controlled entities should be aggregated in determining coverage. Regulations will issue providing more detail, and we will continue to monitor these developments. In the interim, here is a link to the guidance posted today by the Wage and Hour Division:
https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
