---
url: 'https://www.fmjlaw.com/mandatory-ffcra-paid-leave-sunset/'
title: 'Mandatory FFCRA Paid Leave About to Sunset: New COVID-19 Relief Bill Provides for Expiration of Mandatory FFCRA Paid Leave with Option and Incentive If Employers Extend It on Their Own'
author:
  name: Georgie Stocks
  url: 'https://www.fmjlaw.com/author/gstocks/'
date: '2020-12-30T19:12:08+00:00'
modified: '2021-08-10T15:52:18+00:00'
type: post
categories:
  - Article
  - COVID-19 Resource
  - COVID-19 Resource
  - Legal Alert
  - Legal Alert
  - Newsroom
  - Thought Leadership
image: 'https://www.fmjlaw.com/wp-content/uploads/2020/12/ffcra-article.jpg'
published: true
---

# Mandatory FFCRA Paid Leave About to Sunset: New COVID-19 Relief Bill Provides for Expiration of Mandatory FFCRA Paid Leave with Option and Incentive If Employers Extend It on Their Own

On Sunday, December 27, 2020, the President signed into law a major piece of legislation that contained, among other things, a new COVID-19 relief package that was finally passed by Congress last week – after months of negotiations. The new relief package contains measures designed to address a number of ongoing concerns held by individuals and businesses across the United States as they continue to face the challenges brought on by the COVID-19 pandemic. Among other things, the package provides for direct “stimulus” payments for most Americans, extensions of certain pandemic-based unemployment compensation programs that were enacted earlier this year as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), a temporary federal unemployment supplement of $300 per week for individuals who receive state unemployment benefits through March 14, 2021, and new funding for a second round of Paycheck Protection Program loans (which we discussed in more detail in [an alert released by our PPP Loan Application and Audit Team on Monday](https://www.fmjlaw.com/new-stimulus-package-new-ppp-2/)). 

While the 5,593-page legislation allocates billions of dollars in new emergency economic relief expenditures, several conjectured relief measures were conspicuously missing from the final language of the relief package. One such omission was an extension of the paid leave benefits that most employers with fewer than 500 employees have been required to provide under the Families First Coronavirus Response Act (“FFCRA”) since that law took effect in April 2020.  

Although most small and mid-size employers have become well-versed in the various provisions of the FFCRA over the last nine months, the expiration date of the FFCRA’s paid leave mandate is quickly approaching as it is currently set to expire on December 31, 2020. An extension of the FFCRA’s paid leave mandate (or something similar) was one of the items being negotiated as part of the new COVID-19 relief package, but that item was not included in the final version of the bill. This means that unless another piece of legislation is quickly passed to extend the FFCRA’s paid leave mandate, employers will no longer be required to continue providing those benefits to employees after December 31, 2020. 

However, the new relief package does provide employers with a potential cost-neutral option to continue providing paid leave under the same terms and conditions of the FFCRA if they wish to do so. Specifically, employers that voluntarily elect to continue providing paid leave in accordance with the FFCRA will be able to continue taking advantage of the dollar-for-dollar payroll tax credit associated with such payments through March 31, 2021. Importantly, this tax credit extension simply means that employers can continue to be reimbursed for leave payments that would otherwise qualify for the credit under the original language of the FFCRA. In other words, employers may not be able to receive a credit for payments made to employees who do not meet one of the FFCRA’s specific qualifying reasons, payments that exceed the daily or cumulative caps on the dollar amounts payable to employees under the FFCRA, or payments to employees who have already exhausted the total amount of leave available to them under the FFCRA (i.e., up to 80 hours for emergency paid sick leave and up to 12 weeks for paid family and medical expansion leave). As can be expected with most new legislation, there may be additional guidance and clarifications on these aspects of the FFCRA as the relief package is implemented, and we will continue to monitor any developments in this area closely.  

Although the current version of the FFCRA paid leave mandate is likely expiring at the end of this week, there still may be additional legislative efforts in the coming weeks to implement new measures to protect employees, particularly in light of ongoing concerns and reports of increased infection rates. Employers should also be mindful of existing state, municipal, or other laws in some jurisdictions that provide paid leave for employees affected by the COVID-19 pandemic. For example, a number of states (including Colorado, New York, and a few others) and several cities (such as Pittsburgh and Washington, D.C.) have passed complex laws of their own that require certain employers to provide emergency paid sick leave and/or paid family and medical leave benefits to employees in circumstances relating to COVID-19. Since a number of the state and city-mandated benefits do not expire on December 31, 2020, when the FFCRA leave requirement ends, we recommend consulting with experienced employment counsel to ensure that your policies and practices comply with the various paid leave requirements that apply in the jurisdictions where you do business

***If you have questions about the new relief package or coordinating your existing policies with any of the new relief components, FMJ’s [HR & Employment](https://www.fmjlaw.com/practice-area/hr-employment/) attorneys can help. Please contact [Shannon McDonough](https://www.fmjlaw.com/professional/shannon-m-mcdonough/) ([shannon.mcdonough@fmjlaw.com](mailto:shannon.mcdonough@fmjlaw.com)), [Heidi Carpenter](https://www.fmjlaw.com/professional/heidi-a-carpenter/) ([heidi.carpenter@fmjlaw.com](mailto:heidi.carpenter@fmjlaw.com)), or [Natolie Hochhausen ](https://www.fmjlaw.com/professional/natolie-s-hochhausen/)([natolie.hochhausen@fmjlaw.com](mailto:natolie.hochhausen@fmjlaw.com)) for more information. ***

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