COVID-19 law and small business

Businesses everywhere are struggling due to the complications associated with COVID-19, or the coronavirus, along with the need to keep employees safe and healthy. Operations are slowing down or stopping entirely, employees are being sent to work from home and other precautions are being taken to fight against the pandemic.

Paid Leave Act

The "Paid Leave Act" was recently passed in the U.S. to help employees of small businesses who are struggling to pay their bills. According to 22 WWLP News, the law requires businesses with less than 500 employees to provide their workers with specific paid leave benefits. They can choose to provide either two weeks of paid sick leave at the employee's normal rate of pay or two weeks of paid sick leave at two-thirds their normal rate of pay, depending on if they are struggling with the virus themselves or caring for someone else with it, respectively.

This new law is a step in the right direction toward helping employees who are affected by the virus, as many people are unable to work remotely due to symptoms or conditions. Especially for those currently seeking medical care, the Paid Leave Act is helping them to get by in everyday life.

How it affects small businesses

While the law is great for helping employees in need, it has the possibility of making things much more difficult for small-business owners. For many owners, they are being affected by the pandemic in the same ways that their employees are with no foreseeable income at all, not to mention the wages that they are still paying their employees.

It is a tough and uncertain time for many, and a lot of small-business owners are struggling to figure out how they can help their employees and their businesses amid the new law. According to Tuscon.com, if an employer owns a business with fewer than 50 employees, they could be allowed to seek an exemption from this law. To do so, they must prove that the paid sick leave compliance would put the well-being of their business in jeopardy. While the Department of Labor is still finalizing the rules regarding this, there is hope for small business owners who would be negatively affected by this new law.

As COVID-19 makes it difficult for small businesses and employees alike to afford their bills and medical payments, it can be hard to figure out where the limited amount of income should go. For businesses who are still operating, things are a little bit easier, but the real problems start to arise for those who have to close down. The hope is that this law will help employees and employers alike in the best way possible.

Categorised in: Starting a Business in Arizona

This post was written by