On Sunday, December 27, 2020, President Trump signed into law the 2021 appropriation and $900 billion COVID-19 relief package. Keep in mind, however, that the leave provisions of the new law are open to DOL review and interpretation. Also, Congress is meeting this week and is reportedly considering another stimulus bill, which would further extend FFCRA.
So, stay tuned…
In the meantime, here are the employment-related highlights from the 5,000 page bill:
First, it extends the ability for employers to apply for a tax credit for providing Families First Coronavirus Response Act (FFCRA) paid leave through March 31, 2021. Importantly, the Bill does not extend the requirement to provide FFCRA through March – the FFCRA is still currently scheduled to end on December 31, 2020, but if you choose to provide FFCRA, you can obtain a tax credit for those payments made through March 31, 2021.
So what does this mean exactly?
In other words, as of January 1st, for any of your employees who need time off due to COVID-19, you can – of course – follow your company’s existing leave policies. In the alternative, you can also voluntarily continue to grant paid leave under the FFCRA (assuming your employee who needs the time off still has time available under his or her original allotment) and apply for a tax credit for the payment through March 31, 2021.
Also, don’t forget that, though there may not be a requirement for further paid FFCRA leave in 2021, an employee may still be entitled to unpaid leave under the Family andMedical Leave Act (FMLA) for employers with 50 or more employees, under the Americans withDisabilities Act (ADA) for employers with 15 or more employees, and/or pursuant to other applicable state leave laws where the employee is working.
Second, the new law also extends unemployment benefits. The new law expands unemployment benefits for workers pursuant to the CARES Act as follows:
- Under the Federal Pandemic Unemployment Compensation (FPUC) provision of the CARES Act, all individuals receiving unemployment benefits get an additional $300 per week through March 14, 2021.
- Under the Pandemic Unemployment Assistance (PUA) provision of the CARES Act, benefits are extended through March 14, 2021, and the maximum number of weeks an individual may claim unemployment benefits is increased from 39 weeks to 50 weeks.
Starting January 31, 2021, however, those receiving unemployment benefits must provide documentation to substantiate their employment within 90 days, and new applicants must provide documentation to substantiate employment within 21 days.
We will continue to keep you posted on new developments, which you can find on our website here. Have questions? Feel free to contact Phil at pwells@soulelawfirm.com.