Regulatory Updates

Regulatory Update: Stimulus Bill Gives Employers Option of Extending FFCRA Leave

Jan 4, 2021, 4:41 PM

(From Robbins Schwartz) On December 27, 2020, the federal government authorized a new $900 billion stimulus package, the Consolidated Appropriations Act, to provide additional relief relative to the economic impact of the COVID-19 pandemic. A portion of the stimulus funds will be used to extend certain tax benefits first made available through the Families First Coronavirus Response Act (FFCRA) through March 31, 2021. Other highlights of the relief bill include extensions of certain unemployment compensation originally included in the CARES Act, meaning that employers have the discretion to permit additional time off and to benefit from the tax offset for the financial burden through March 31.

The bottom line, according to an alert from education law firm Robbins Schwartz, is that the new bill provides some additional incentive to covered private employers to be flexible with paid time off requests as the pandemic continues. However, if, by December 31, 2020, an employee has already exhausted their EPSL entitlement under the FFCRA, they are not entitled to additional paid EPSL leave beginning January 1, 2021, and it does not appear that an employer will be entitled to a tax credit for paid leave voluntarily provided in excess of the employee’s paid leave entitlement. If the school does intend to extend benefits, the school should do so consistently to all employees and should be aware that if the school uses the calendar year for FMLA, resetting allotments on January 1 for all employees, they would likely be required to extend EFMLA again to employees who are eligible for the program, according to Amber Stockham, director of human resources programs.