Paying employees during a coronavirus-related project suspension: What do federal laws say?

Paying employees during a coronavirus-related project suspension: What do federal laws say?

The quick answer is that contractors are generally not required to pay employees for time off during a project suspension, but it may depend on the specific circumstances. While federal wage and hour law does not require contractors to pay employees during time off from work, the new federal leave laws do require paid leave under limited circumstances. Specifically, the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act collectively require covered employers to provide paid leave to employees for six specific COVID-19-related reasons. Finally, even if contractors are not required to pay their employees for time off under wage and hour laws or the new federal leave laws — which will generally be true in the case of a project suspension — contractors may still be obligated to pay those employees under any existing employment contract or PTO policy they have with their employees.

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