Trump administration issues guidance scaling back paid leave requirement for small business employees

Trump administration issues guidance scaling back paid leave requirement for small business employees
© Greg Nash

President TrumpDonald TrumpSunday shows preview: House GOP removes Cheney from leadership position; CDC issues new guidance for fully vaccinated Americans Navajo Nation president on Arizona's new voting restrictions: An 'assault' on our rights The Memo: Lawmakers on edge after Greene's spat with Ocasio-Cortez MORE’s administration has pulled back requirements for small businesses to administer paid leave to their employees in a guidance published Wednesday.

The Labor Department’s guidance for the coronavirus stimulus bill said companies with fewer than 50 workers have the option to decline 12 weeks of paid leave that the bill mandated for those whose children are home from school or child care.

Employees are granted two weeks of paid sick leave and 12 weeks of paid family leave under the law, which exempted employers from administering the paid family leave if it hindered business from functioning. 


The law already does not apply to companies with more than 500 employees, meaning in total, more than 75 percent of American workers are employed at companies that can be exempt, The New York Times noted.

But the Department of Labor interpreted that small businesses could be exempt from providing the family leave if it would “cause the small business to cease operating,” if employee absence would pose “a substantial risk” to the business or if there were not enough employees “able, willing and qualified” to fill in for the individual on leave. 

Small businesses cannot deny sick leave. 

But health care providers, first responders and certain federal government employees could also be declined the family paid leave under the law.

Democrats expressed concern that the law did not provide the needed flexibility for workers during the pandemic. Sen. Patty MurrayPatricia (Patty) Lynn MurrayBiden's pre-K plan is a bipartisan opportunity to serve the nation's children Schumer 'exploring' passing immigration unilaterally if talks unravel Senate Democrats push Biden over raising refugee cap MORE (D-Wash.) and Rep. Rosa DeLauroRosa DeLauroHouse Democrats unveil .9 billion bill to boost security after insurrection Capitol Police watchdog back in spotlight amid security concerns Battle lines drawn over Biden's support for vaccine waivers MORE (D-Conn.) sent a letter to Labor Secretary Eugene ScaliaEugene ScaliaBiden should keep the new commonsense independent contractor rule Demolition at the Labor Department, too AFL-CIO calls on Trump to resign or be removed from office 'at once' MORE saying the guidelines “violate congressional intent” and ”contradict the plain language” of the law.

Scalia said in a statement Wednesday the law gave “unprecedented paid leave benefits to American workers affected by the virus, while ensuring that businesses are reimbursed.”

Paid leave was one of the most contentious aspects of the massive stimulus bill, as Democrats pushed for more leave for employees, delaying the Senate vote on the package.