Labor & Employment Alert: Federal Programs for Emergency Paid Sick Leave and Expanded Family and Medical Leave about to Expire?

Last spring, Congress reacted to the Covid-19 crisis by, among other things, enacting the Families First Coronavirus Response Act (FFCRA). That law included two new employee benefits: 80 hours paid sick leave for employees under quarantine or caring for someone under quarantine; and a special provision that expanded on long-standing Family and Medical Leave, by allowing it to be used to care for a child whose school has been closed due to Covid-19, and which provided for partial pay during that time. It was a sudden change to human resources practice for many employers, given that these provisions were limited to employers with less than 500 employees. But, employers seemed to get a handle on the situation within a few weeks.

We received a new influx of calls for advice when schools shut down for the summer. And, more recently, in the wake of some surges in reported Covid cases, we have heard from a number of employers who, perhaps because they instituted layoffs early on, are now dealing with their first requests for leave under these two programs.

The latest wrinkle is this: by virtue of the law which originated these leave rights last spring, both benefits are legally set to expire at the end of this month.

Congress is fully aware of this deadline; and bills have been submitted to extend them. However, in the current discussions by Congressional leadership, the two bills being discussed as the basis for their big compromise are:

The “Emergency Coronavirus Relief Act of 2020” which contains provisions for:

• Paycheck Protection Program & Small Business Support
  • $300 billion to Small Business Administration
  • Funding to allow the hardest-hit small businesses to receive a second forgivable Paycheck Protection Program (PPP) loan
• Unemployment Assistance, extending pandemic unemployment insurance programs by 16 weeks
• Emergency Assistance to Support the Health and Safety of Americans, relative to Vaccine Development & Distribution, Testing and Tracing, and Supporting Health Care Providers
• Emergency Assistance for a Strong Economic Recovery, extending funding to airline workers, childcare providers, farmers, and low-income communities

The “Bipartisan State and Local Support and Small Business Protection Act of 2020,” which would provide funding to state and local governments, extend the deadline for using last spring’s Coronavirus Aid, Relief, and Economic Security (CARES) Act Coronavirus Relief Fund (CRF), and provide limitations on the scope of lawsuits which may arise out of the pandemic. None of those provisions deals with the sunset clauses on these federal leave programs. While there is still talk at this late date of tacking additional provisions onto this grand bargain, updating this deadline does not seem to be under consideration as part of the current bill.

Given their desire to pass the one bill and go home for Christmas, Congress gives no indication that these dates will be changed this year. The takeaway is to be alert to this issue and, as of now, anticipate that these special leave programs will be passing away along with 2020.

For over 100 years Brouse McDowell has assisted clients in getting through difficult times and helping them solve problems continuing with this tradition, please contact us with any questions and we would be glad to help.