February 1 Tip of the Week

There is still a lot of confusion around the Families First Coronavirus Response Act (FFCRA) obligations in 2021. With the pandemic ongoing and a change in administration, it’s no wonder employers have questions. The paid sick leave and expanded family and medical leave requirements under the FFCRA expired on December 31, 2020. However, late last year, Congress enacted the 2021 Consolidated Appropriations Act (CAA) which extended employer tax credits for paid sick leave and expanded family and medical leave voluntarily provided to employees until March 31, 2021. This means that, ultimately, whether or not to provide paid FFCRA-like leave in 2021 is largely a business decision (assuming no other state, local, or company policy requirements).

As with any business decision, a number of considerations should be factored in. First, look to obligations imposed by state or local law and guidance. If required to provide paid leave pursuant to state or local law, such requirements may be satisfied with an FFCRA-like framework which would allow for the collection of tax credits to fund the leave.

Consider also the ability to staff properly and maintain operations. This could mean different things for different companies and industries. Whereas an organization that can operate remotely at full, or close to full, capacity may experience little business interruption, another company may see serious, negative consequences from an inconsistent workforce.

Businesses should also keep in mind their general duty to provide a safe and healthy workplace. Employees may be more likely to present at work while sick if they cannot take paid time off. Employers without a proper response and safety plan could then see increased outbreaks among employees.

Attorneys at myHRcounsel can guide your company through this complex decision making process.