Updates to FFCRA: How the American Rescue Plan Act Impacts Leave Related to COVID-19
The American Rescue Plan Act, signed into law on March 11th, 2021, does not require employers to continue offering Families First Coronavirus...
Late in the evening on Friday, September 11, 2020, The U.S. Department of Labor (DOL) issued revised Families First Coronavirus Response Act (FFCRA) leave rules. The DOL issued revised regulations on the FFCRA's paid-sick-leave and paid-family-leave provisions, clarifying when leave is available and when employees must seek approval to take leave.
The revisions follow a ruling from the U.S. District Court for the Southern District of New York that invalidated portions of the DOL's April 1 temporary rule. According to the agency, the revisions, which take effect immediately upon publication in The Federal Register on Sept. 16, do the following:
The revisions also address the district court's order by providing additional explanations for certain requirements.
We are keeping up-to-date as new legislation and provisions are passed and are committed to keeping our clients well-informed. If you have any questions, or need any assistance, please don’t hesitate to reach out.
Update: On December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021 (the Act), which provides additional COVID-19 relief to individuals and businesses. The bill was signed by the President December 27, 2020. It is important to note that the Act does not extend requirements for employers to provide emergency paid sick leave or emergency paid family and medicial leave under the Families First Coronavirus Response Act (FFCRA) past the original December 31, 2020, expiration date. However, Congress extended employers' abiliity to utilize the FFCRA tax credit until March 31, 2021, if employers voluntarily continue to provide FFCRA paid leave benefits to their employees.
Additionally, the Act does not expand the amount of leave available to employees under the FFCRA. As such, employers cannot claim the tax credit for employees who have already utilized all of their FFCRA leave entitlement. Employers should be mindful of additional paid sick leave and paid family leave requirements under state and local laws and should continue to comply with their own paid leave policies.
The Act also provides direct payments to individuals, an expansion of unemployment insurance benefits, additional funding for the Paycheck Protection Program (PPP), an extension of the employee retention tax credit, and an extension of the reimbursement program for federal contractors who provide paid sick leave. The Act does not include liability or employment law protection for employers.
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