HR News - Emergency Coronavirus Leave Update and More

The U.S. Department of Labor (DOL) announced additional guidance regarding the Families First Coronavirus Response Act (FFCRA). As of December 31, 2020, employers are no longer legally required to provide FFCRA leave even if an employee did not use any leave. Employers who voluntarily provide paid FFCRA leave after December 31, 2020, can receive tax credits under the Consolidated Appropriations Act (CAA) 2021. The CAA was extended until March 31, 2021.

Additionally, the DOL clarified the standards for employee vs independent contractor status under the Fair Labor Standards Act (FLSA). They reaffirmed the "economic reality" test to determine if an individual is in business for themselves (independent contractor) OR is economically dependent on a potential employer for work (FLSA employee). They also provided two "core factors" that prove this "economic reality"
1st - The nature and degree of control over the work
2nd - The worker's opportunity for profit or loss based on initiative and/or investment.
The rule will take effect 60 days after publication on the Federal Register, on March 8, 2021.

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