DOL and IRS issue guidance on COVID-19 emergency paid leave 

Temporary regulations (29 CFR Part 826, as corrected) and other agency guidance on emergency paid leave and related tax credits answered some employer questions about the Families First Coronavirus Response Act (FFCRA) (Pub. L. No. 116-127), as amended by the Coronavirus Aid, Relief and Economic Security (CARES) Act (Pub. L. No. 116-136). This GRIST incorporates revised temporary regulations (85 Fed. Reg. 57677) and related Q&As from the Department of Labor (DOL) issued after a federal district court invalidated certain portions (New York v. US Dep't of Labor, No. 20-cv-3020 (S.D.N.Y. Aug. 3, 2020)). The coverage also provides an overview of the corresponding tax credits.

The latest update to this GRIST reflects the extended availability of tax credits through March 31, 2021. The extension applies to employers that voluntarily provide FFCRA paid leave in 2021 to eligible employees who did not exhaust their leave entitlement in 2020. While the Consolidated Appropriations Act of 2021 (Pub. L. No. 116-260) has extended the tax credits, the law did not renew or expand the FFCRA’s paid leave mandate, which expired Dec. 31, 2020.

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