The New Stimulus Bill Kind of, Sort of Extends Paid Leave Under the FFCRA

As most employers are aware, the Family First Coronavirus Response Act provided for paid leave to employees of employers with less than 500 employees in certain designated circumstances. The foregoing circumstances included, but were not limited to, up to eight (80) hours of paid leave for employees if they are subject to quarantine or were diagnosed with COVID-19. The paid leave provisions of the FFCRA were set to expire on December 31, 2020.

On December 21, 2020, Congress passed a new stimulus bill after months of negotiations, however, President Trump has not yet signed the bill. Many expected the new stimulus deal to extend the mandated paid leave provided by the FFCRA beyond December 31, 2020. Those who expected that were wrong.

The new stimulus deal merely extended the payroll tax credits tied to the FFCRA leave through March 31, 2021. The requirement that employers provide such leave, however, was not extended beyond December 31, 2020. As such, as of January 1, 2021, the FFCRA is no longer required but employers may voluntarily provide such leave and take the tax credit. Please note, however, that the leave entitlement was not expanded or extended. As such, if an employee already used their entitlement of FFCRA paid leave, the stimulus bill did not refill that bucket.

If you have questions on this, or any other labor and employment matter, please do not hesitate to contact any attorney of Hoffman & Hlavac.