The American Rescue Plan Act of 2021 – BIG Changes to Paid Sick Leave
Posted on April 15, 2021
By: Lily Crespo Esq.
Quick Takeaway: The Rescue Plan resets the 10-day/80-hour limit for Paid Sick Leave starting April 1, 2021. This means, if employees have previously exhausted their entitlement to Paid Sick Leave under the FFCRA, they now have another 10-days/80-hours for use.
***This Act effectively continues as a tax credit statute. IT IS NOT MANDATORY ON ANY EMPLOYER. Period. Employers are not required to provide paid sick (EPSL) or paid FMLA leave (EFML), but if they do within the parameters of FFCRA, they are entitled to certain tax credits.***
What happened: On March 10, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (the “Act”). This $1.9 trillion COVID-19 relief package not only includes a whole host of healthcare-related provisions, but, along with actions taken (or not taken) by the Biden Administration, accounts for a marked departure from healthcare policy carried out by the Trump Administration. The Act took effect April 1, 2021. The Act includes provisions revising and extending tax credits to employers that provide paid sick leave and paid FMLA leave to their employees.
Changes to Paid Sick Leave
The Rescue Plan resets the 10-day/80-hour limit for Paid Sick Leave starting April 1, 2021. This means, if employees have previously exhausted their entitlement to Paid Sick Leave under the FFCRA, they now have another 10-days/80-hours for use.
The Rescue Plan also adds three additional qualifying reasons for Paid Sick Leave. These include:
- Obtaining a COVID-19 vaccine;
- Recovering from any illness or condition related to the COVID-19 vaccine; or
- Seeking or awaiting the results of a COVID-19 diagnosis or test if either the employee has been exposed to COVID-19 or the employer requested the test or diagnosis.
As you consider these and other issues, we recommend you speak with your school lawyer or contact Bea, Kevin, Megan, Beth, and Lily by email or at 406-542-1300 to discuss these issues.
