from Whitfield & Eddy Law, April 2021
Under the recently enacted American Rescue Plan Act (“ARPA”), Congress revised the FFCRA paid leave/tax credit program. From April 1, 2021 through September 30, 2021, Councils may voluntarily provide paid sick leave to their employees. It appears that Councils will also receive tax credits for FFCRA paid leave wages from April 1 through September 30, 2021. If the Council chooses to provide this leave, the Council cannot discriminate among employees who may receive the leave (part-time vs. full-time, highly compensated vs. minimum wage employee, etc.). Here are three key takeaways for employers providing FFCRA benefits:
- ARPA “refills” the two-week (up to 80 hours) emergency paid sick leave entitlement for each eligible employee. Employees must have a qualifying COVID-19 reason.
- Under ARPA, employees may receive up to 12 weeks of qualifying paid family leave per employee (with a qualifying COVID-19 reason).
- It appears that ARPA allows public employers to claim tax credits for leave granted under ARPA.
For additional information and more details, templates, and resources, go to the COVID-19 Employee & Staff Recourses page.