In March 2020, the Families First Coronavirus Response Act (“FFCRA”) became law with an April 1, 2020 effective date and an expected expiration date of December 31, 2020. As discussed in Zashin & Rich’s April 7, 2020 Alert (which you can access here), the FFCRA provides six qualifying reasons related to COVID-19 under which an employer is required to provide paid sick leave and/or paid family leave to an employee. In addition to mandating that employers provide paid sick leave and/or paid family leave, the FFCRA provided tax credits to certain employers that paid employees for sick leave and/or family leave.
On December 21, 2020, both the House and Senate passed the Consolidated Appropriations Act, 2021. The bill includes amendments to the FFCRA’s tax credit provisions, which extend the tax credits through March 31, 2021. The President signed the bill into law on December 27, 2020. While the bill extends the tax credits, the bill does not extend the FFCRA’s mandate that employers provide paid sick leave and/or paid family leave. Rather, the bill provides employers the option of continuing to provide FFCRA leave. For employers that elect to do so, the bill provides employers with the continued tax credit through March 31, 2021. This bill also does not affect state and local laws which may provide additional benefits for employers and employees alike.
Now that the President signed the bill into law, employers need to consider whether they will continue to voluntarily offer paid leave pursuant to the FFCRA (and receive the associated tax credits). Employers that implemented FFCRA policies without expiration dates should convey to their employees whether they will continue offering FFCRA leave through March 31, 2021. Those employers with FFCRA policies that expire on December 31, 2020 and that wish to continue providing leave should amend their policies to reflect the new March 31, 2021 expiration date and recirculate those policies to staff.
Employers with questions related to the new bill or revising their FFCRA policies and practices should contact counsel.
*Patrick M. Watts, an OSBA Certified Specialist in Labor & Employment Law, regularly advises clients on COVID-19-related matters. If you have questions about this new legislations, the CARES Act, the FFCRA, or any employment law matter, please contract Patrick at pmw@zrlaw.com or (216) 696-4441.