Posted on December 23, 2020
The Families First Coronavirus Response Act (FFCRA) expires on December 31, 2020.
The latest stimulus package recently passed by Congress will not change that (Note: As of December 22nd, the President has not signed this legislation).
As of January 1, 2021, employers will no longer be required to provide employees with paid leave under the FFCRA, including emergency paid sick leave or expanded FMLA for child-care related purposes. Congress did, however, include some relief for employers who continue providing paid leave consistent with what the FFCRA required at least through the first quarter of 2021.
Toward that end, employers who continue to grant FFCRA-like leave to employees who had not previously exhausted their FFCRA entitlement may be eligible to collect tax credits similar to those offered under the FFCRA. These tax credits will be available for leave granted through March 31, 2021.
At this time, it appears that the tax credits will mirror those offered under the FFCRA, meaning that only private sector employers who were “covered employers” for purposes of the FFCRA will be eligible for a credit. Employers are encouraged to check with their tax and legal advisors on eligibility for tax credits once the stimulus package is finalized and signed into law.
Finally, with the expiration of the FFCRA, employers should be mindful of other potential leave issues which might apply to employees who need to be absent for COVID-19 related reasons. These include, but may not be limited to, leave under your existing employment policies and/or collective bargaining agreements, traditional FMLA, and/or leave as a potential accommodation under the ADA.
If you have further questions, please reach out to your Knox Law Attorney or call (814) 459-2800.
For more information, please contact Sarah Holland.