The American Rescue Plan

The American Rescue Plan has passed both the House and Senate and awaits President Biden’s signature. President Biden signed the legislation on Friday, March 12, 2021. In this new COVID-19 relief bill there are some important provisions relating to FMLA leave and the voluntary extension of FFCRA provisions, potentially affecting employers. 19 H.R 1319 Part 5 § 3131 - 3132. Some of the relevant provisions are included below: 

• The Families First Coronavirus Response Act expired on December 31, 2020, meaning the obligation to provide emergency pard sick leave and emergency family leave expired with it. Congress extended the tax credit for employers voluntarily continuing to provide those mentioned paid leaves. The American Rescue Plan has extended the tax credit for employers for voluntarily providing such leave through September 30, 2021. 
• The American Rescue Plan also resets the 10-day limit for the above-mentioned tax credit on April 1, 2021, meaning employers could provide an additional 10 days of FFCRA paid sick leave to an employee beginning April 1, 2021 and receive a tax credit for doing so, even if the employee has already received 10 days of paid leave before April 1, 2021. Again, this is voluntary. 
• Qualifying Sick Leave now includes leave for obtaining a COVID-19 vaccine as well as illness, disability, injury, or other condition related to inoculation, in addition to the previously available qualifying reasons of an employee seeking or awaiting the results of a diagnostic test for COVID-19, or a medical diagnosis of COVID-19.
• Qualified Family Leave under the Emergency Family and Medical Leave Act and the Family and Medical Leave Act now also includes vaccination related absences and absences related to illness or injury caused by the COVID-19 vaccine. It also allows for FMLA to apply when the employee is seeking or awaiting results of a COVID-19 test, or a COVID-19 medical diagnosis. 
• For state and local governments, the tax credit will not be retroactive, but there may be some benefit to state and local governments for extensions beyond March 31, 2021, potentially making state and local governments eligible for FFCRA paid leave reimbursable tax credit. The effective date of the Bill is March 31, 2021, meaning the reimbursable tax coverage for the American Rescue Plan begins on that date
• The allowable tax credit for Family Leave has increased from $10,000 to $12,000.