December’s COVID-19 federal relief package was massive, and it received a lot of press: $600 payments to individuals, a $300 weekly unemployment supplement, new funding for Payroll Protection Program (PPP) loans, and other forms of economic support.

Another important provision garnered less attention. The legislation also extended the Emergency Paid Sick Leave (EPSL) and Emergency Family and Medical Leave Act (EFMLA) benefits enacted in March 2020 by the Families First Coronavirus Response Act. These benefits were originally slated to expire on December 31, 2020, but they’ve now been extended, on a voluntary basis, through March 31, 2021.

EPSL and EFMLA Provisions

The emergency leave provisions apply to employers with 500 or fewer employees and provide paid leave when employees are unable to work for COVID-related reasons. The cost of the leave is offset by payroll tax credits.

• EPSL provides two weeks of paid sick leave at full pay when the employee cannot work because of the employee’s own COVID-19 illness or quarantine. It provides two-thirds pay when the employee cannot work while caring for another individual with COVID-19 or in quarantine. (Details and fine print can be found here.)
• EFMLA provides two-thirds pay for FMLA leave when taken because a child’s school or day care is closed due to COVID-19. Pay provisions apply after 10 days of leave and have different eligibility from traditional FMLA, but draw from a single 12-week leave allotment. (Questions and answers about the program can be found here.)

First Quarter 2021 Extension

Here’s what you need to know about the new extension of EPSL and EFMLA:

• It’s optional. Each employer chooses whether to extend the paid benefits through March of this year.
• The total amount of paid leave has not increased. If an employee has already used two weeks of EPSL or 10 paid weeks of EFMLA, the employer cannot claim additional tax credit. The extension applies to unused balances or employees newly affected by COVID-19.
• The extension does not apply to public sector employers.
• This legislation does not supersede any state or local laws regarding paid leave. Applicable local laws that are more beneficial to employees are not affected.

Looking Ahead

President Biden has indicated he will call on Congress to make further changes to COVID-related paid leave. His plan includes extending leave provisions to larger employers, providing additional paid leave amounts, and extending the program through September. As a result, we may see further changes to EPSL and EFMLA in the next couple of months.

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