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Depends on the state. CA and NY requires vaccination and time off. Also will depend on whether you're tracking who's vaccinated. We currently handle it differently depending on your status.
We've done a mix of both. If it's more than 21 days, we have them take unpaid time off. Everything before that is covered as sick leave
To add context.. we are in WA state and require all employees to be vaccinated. We are still having outbreaks. We currently only offer discretionary paid time off.
Have you seen this? https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
This says effective through Dec 31 2020
Many companies have moved towards a hybrid role. WFH is very common now. Only a few companies I know have extended paid leaves.