Employers: Changes Coming to Mandatory FFCRA Leave Requirements

The Families First Coronavirus Response Act (FFCRA) that was passed in March required specified employers to provide emergency paid sick leave, as well as emergency paid leave under the Family and Medical Leave Act (FMLA), to employees. FFCRA leave ends this month, but tax credits continue for leave voluntarily extended to employees.
Highlights include:

• Mandated FFCRA Leave ends on December 31, 2020.
• As of January 1, 2021, covered employers may voluntarily provide emergency paid sick leave or emergency paid FMLA Leave under FFCRA (as adopted earlier this year) and take the tax credit associated with this leave.
• The tax credit may only be taken for leave through March 31, 2021.

FFCRA leave is no longer required, but if covered employers voluntarily provide these leave benefits through March 31, 2021, they are eligible to take the tax credit, for the leave bill allows covered employers to voluntarily provide emergency paid sick leave or emergency paid Family and Medical Act Leave under the Families First Coronavirus Response Act (FFCRA) as adopted earlier this year, which is set to expire on December 31, 2020, 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. While employers with fewer than 500 employers will no longer be required to provide paid leave under federal law as of January 1, 2021, they should be mindful of other paid leave requirements under state and local laws, as well as their own paid leave and PTO policies.

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