Yesterday, Congress passed the $900 billion spending package providing significant COVID-relief to businesses and individuals. It is expected that President Trump will not exercise his veto power ensuring it becomes enacted this week. The package arrives after much negotiation from leaders of both parties.

The spending package expands unemployment insurance benefits, provides direct payment to individuals, and expands the paycheck protection program. Notably, the new spending package does not extend the paid leave mandate in the Families First Coronavirus Response Act (FFCRA) which expires on December 31, 2020 and required employers to provide emergency paid sick or Family and Medical Leave Act leave to employees.

However, the spending package does extend the tax credits afforded by FFCRA to March 31, 2021. As a result, the package allows covered employers to voluntarily provide emergency paid leave under the FFCRA, which is set to expire December 31, 2020, until March 31, 2021. Employers seeking to voluntarily extend this leave may also take the tax credit associated with such leave until March 31, 2021. FFCRA leave is thus no longer mandated, but if a covered employer voluntarily provides this leave benefit, the employer is eligible to take the credit for the leave.

If you have any questions about the FFCRA mandates under the new spending package, please feel free to contact Kemp Smith’s Labor and Employment Department at 915-533-4424.