What the Paid Sick Leave Extension Means for You

What the Paid Sick Leave Extension Means for You

A new $900 billion coronavirus relief bill is now law.

The question of whether or not the federal Emergency Paid Sick Leave (EPSL) and Emergency Family and Medical Leave (EFMLA) will be extended has been answered: yes.

However, as part of the new $900 billion coronavirus relief bill that recently became law, an employee will no longer be entitled by law to take EPSL or EFMLA—even if they have a qualifying reason.

Extending paid sick leave is at your discretion. It’s an option, not a requirement. 

Here’s what you need to know:

  • As of December 31, 2020, offering EPSL and EFMLA became optional for employers.
  • Employers who choose to offer paid leaves can still receive a tax credit if they follow the current EPSL and EFMLA rules, including job protection. Tax credits for paid leave have been extended to March 31, 2021.
  • Employees don’t get new hours to use. If they have an unused portion of their original allotment of paid sick leave, that’s how much they will be able to use through March 31.

There is a possible exception: if an employer uses the calendar year or another fixed FMLA tracking period that starts before March 31, and the Department of Labor (DOL) fails to readopt their EFMLA regulations, an employee’s EFMLA bank could reset.

Whew! When it comes to employment law, things are always changing. And if you’re in certain highly regulated industries, breaking the law doesn’t mean paying a fine or quickly getting back into compliance.

It means being completely shut down. Don’t risk it! Get instant access to my webinar training—it could save your business.

If you want help avoiding mistakes, fines, lawsuits and angry employees, contact me for a free consultation.

To Your Inevitable Success,
Katherine Hartvickson

P.S. I’ll keep you posted on the IRS and DOL guidance that will clarify whether certain employers and industries will need to offer additional paid leave hours to employees.

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