Earlier this month, Diversified Group notified our clients (access blog here) that the Families First Coronavirus Response Act (FFCRA) leave requirements were set to expire on 12/31/20. FFCRA allowed for paid FMLA and up to 80 hours of paid sick leave under certain coronavirus related circumstances. The provision was mandatory for employers with fewer than 500 employees.
The recent stimulus bill passed by Congress that is now sitting on the President’s desk awaiting either signature or veto failed to extend the FFCRA leave provisions. However, the bill does allow covered employers to voluntarily provide emergency paid sick leave or emergency paid Family and Medical Act Leave under FFCRA as adopted earlier this year and to take the tax credit associated with this leave through March 31, 2021. In other words, FFCRA leave is no longer required, but if covered employers voluntarily provide these leave benefits, they are eligible to take the tax credit for the leave.
Diversified Group will issue further updates once the stimulus bill is passed.
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