Virus Paid Leave Law’s April 1 Start Muddles Layoff Decisions

The thorny process of shedding labor costs to avoid Covid-19 ruin will be further complicated for some companies Wednesday when the Labor Department unveils new paid leave rules taking effect immediately for as many as 89 million workers.

As companies weigh a range of workforce reduction options to remain afloat—such as terminations, furloughs, indefinite layoffs, and hours reductions—the DOL leave mandate will throw a new wrinkle into the equation, possibly pushing some employers into the category of eliminating jobs.

In the two weeks since President Donald Trump signed the Families First Coronavirus Response Act (Public Law 116-127) into ...