What Employers Need to Know about Paid Leave and the New Stimulus Bill
President Biden is expected to sign the new stimulus bill, titled the “American Rescue Plan” (the “Plan”) into law on March 12, 2021. The Plan further extends voluntary paid leave for employees through September 30, 2021. Previously, employers covered by Families First Coronavirus Response Act (the “Act”) had the option to voluntarily extend the paid leave provisions of the Act to employees in through March 31, 2021. The Act offers certain employees with emergency paid sick leave (EPSL) and emergency leave under the Family and Medical Leave Act (EFMLA).
Employers may voluntarily choose to extend the EPSL or the EFMLA or both to employees through September 30, 2021. Employers who choose to do so may also take the associated tax credits provided to employers under the Act.
The extended paid leave provisions are still subject to the same maximums and the same qualifying reasons, with some notable additions. For employers voluntarily offering EPSL, the Plan provides that employees may have an additional 10 days of EPSL beginning April 1, 2021.
In addition, there are now new added qualifying reasons for employees taking EPSL or EFMLA, in particular:
the employee is obtaining immunization (vaccination) related to COVID-19;
the employee is recovering from any injury, disability, illness or condition related to such vaccination; or
the employee is seeking or awaiting the results of a diagnostic test or medical diagnosis for COVID-19 (or their employer has requested such a test or diagnosis).
All Department of Labor guidance on the Families First Coronavirus Response Act can be found at dol.gov, and more guidance is expected in the days to come.