DOL Publishes Guidance on FFCRA Paid Leave Expiration
Tax Credits for Voluntarily Providing Leave Temporarily Extended

The Families First Coronavirus Response Act (FFCRA) paid sick leave and expanded family and medical leave requirements expired on December 31, 2020. Following is the news story concerning the latest U.S. Department of Labor (DOL) guidance as to what this means moving forward. We will inform you of any new updates from DOL on this matter.

Meanwhile, Congress extended until March 31 the FFCRA employer-tax credits for paid sick leave and expanded family and medical leave voluntarily provided to employees. To date the IRS has not provided an update on its guidance, as it is reasonable to wonder if these tax credits could cover state or local mandated paid leave requirements. We will also update OCA members, should the IRS provide guidance.

The U.S. Department of Labor’s Wage and Hour Division (WHD) posted announced additional guidance to provide information about protections and relief offered by the Families First Coronavirus Response Act (FFCRA). The FFCRA’s paid sick leave and expanded family and medical leave requirements expired on Dec. 31, 2020.

The new guidance, in the form of Frequently Asked Questions (see questions 104 & 105) on the WHD website, addresses whether workers who did not use their leave entitlement under the FFCRA in 2020 may use such leave after Dec. 31, 2020. It also explains how WHD will maintain its enforcement authority over employers’ leave responsibilities while the FFCRA’s paid leave requirements were in effect, even after these leave entitlements have expired.

Additionally, the Consolidated Appropriations Act (CAA), 2021, extended employer tax credits for paid sick leave and expanded family and medical leave voluntarily provided to employees until March 31, 2021. However, the CAA did not extend employees’ entitlement to FFCRA leave beyond Dec. 31, 2020, meaning employers will no longer be legally required to provide such leave. IRS has not updated its guidance yet, but existing guidance on the eligible tax credits can be found here .

WHD provides additional information on common issues employers and employees face when responding to the coronavirus and its effects on wages and hours worked and job-protected leave under the FMLA at https://www.dol.gov/agencies/whd/pandemic . For OCA resources on FFCRA and other coronavirus-related matters of significance to construction employers, visit OCA’s website at www.ohiocontractors.org