Question of the Week

Question: I have an employee that has caught COVID again. They already took leave last year, and I’m wondering if they can take leave again now. Can they?

Answer: The American Rescue Plan Act of 2021 (ARPA) signed by President Biden became law on March 11 and did extend the voluntary leave provisions of the FFCRA from 2020. This means that companies with less than 500 employees may grant an employee up to 10 days leave time to handle COVID-related issues with either full or reduced pay, depending on the qualifying circumstances. Employers may claim a payroll tax credit for any leave time provided to an employee for a qualifying reason between April 1 and Sept. 30, 2021.

ARPA also refreshed the 10-day leave period. So if an employee exhausted leave time prior to April 1, you may now allow a worker an additional 10 days of leave and claim that as a payroll tax credit. In addition, there are some new permitted reasons to take leave, which include when a person is awaiting test results, obtaining the vaccine, or recovering from the vaccine. 

However, the key word here is “may.” You are not required under ARPA to provide this additional 10 days but may opt to do so.

So the short answer is yes, you MAY allow your workers another 10 days to handle COVID-related issues if they’ve already exhausted qualifying leave time prior to April 1, 2021. If you do, you may claim a payroll tax credit for that time. But you are NOT required to provide that time if you choose not to grant it to your employees. If you do not, then employees will have to use other accrued leave or leave without pay to cover the time missed.