American Rescue Plan Extends Employer Tax Credits for FFCRA Leave

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We previously reported that the U.S Department of Labor published guidance stating that while employers are not required to provide employees with paid leave under the Families First Coronavirus Response Act (FFCRA) after December 31, 2020, employers may voluntarily decide to provide such leave. Importantly, the Consolidated Appropriations Act, 2021 extended employer tax credits for paid sick leave and expanded family and medical leave voluntarily provided to employees until March 31, 2021.

On March 11, 2021, President Biden signed the American Rescue Plan, which did not include any additional mandates under the FFCRA, however, it did include the following provisions:

Again, employers are not required to offer these benefits, but the tax credits are available for those who eligible employers who offer them. Please contact the attorneys in our Labor & Employment Group for more information.

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