Published: March 17, 2021
The American Rescue Plan Act of 2021 (“ARPA”) was signed by President Biden on March 11, 2021. Part 5 of the ARPA provides for additional credits to employers whose choose to grant paid sick leave and emergency family leave to eligible employees under the FFCRA.
To be clear, the ARPA does not require employers provide FFCRA leave to employees. That mandate expired on December 31, 2020. However, the continuation of certain tax credits for employers who voluntarily provide FFCRA leave has been extended from March 31, 2021 until the end of September, 2021.
Additionally, the ARPA made some other changes to expand employee eligibility (reasons) for taking FFCRA leave, reset the cap on the total amount of paid sick leave an employee can take, and increased the cap on wages paid for emergency family leave. Below is a summary of some of the main changes made by the ARPA.