California Employee Benefits Under the ARPA

On March 11, President Biden signed into law the American Rescue Plan Act of 2021 (ARPA) to help facilitate the country’s economic recovery from the coronavirus pandemic. Within the ARPA are a number of provisions that impact the benefits of workers nationwide, including those in California. As an employee, it is important to know what benefits you receive and what obligations your employer has to you as a part of this Act. To learn more about the benefits you are entitled to or to discuss any other legal matter in the workplace, talk to an experienced California employment law attorney in your area today.

Voluntary Paid Leave Programs

Under a prior Act, employers with less than five hundred employees were required to provide paid leave for workers who could not come into work due to COVID-19 reasons. The requirement to provide paid leave expired at the end of last year; however, under the ARPA employers can still voluntarily choose to provide paid sick leave for the coronavirus through September 30, 2021 and receive tax credits for the company in exchange. In addition, the ARPA expands the reasons why an employee can take a paid sick leave for the pandemic, which includes obtaining a COVID-19 immunization, recovering from sickness caused by the immunization, and seeking or awaiting the result of a COVID-19 test or diagnosis when the employee has been exposed. 

Unemployment Insurance

The ARPA also expanded the benefits available to workers who need unemployment benefits as a result of the pandemic. The new Act expands benefits provided under the Pandemic Emergency Unemployment Compensation (PEUC) program to 53 weeks and through September 6, 2021. It also expands benefits for workers receiving unemployment through the Pandemic Unemployment Assistance (PUA) program by providing up to 79 weeks of benefits, and up to 86 weeks in states hit particularly hard, that extends through September 6, 2021. Finally, the ARPA also extended the Mixed Earner Unemployment Compensation (MEUC) program to September 6, 2021. The Act also provides a waiver on federal taxes for the first $10,200 of benefits received in 2020 for workers who earned less than $150,000.

Short-Term Compensation for Workers

The new Act also encourages employers to engage in short-time compensation plans, which reduce worker hours instead of laying off employees. Employers can receive 100% reimbursement from the federal government for unemployment benefits paid out under these programs, and the ARPA has extended the time that employers can receive reimbursement to September 6, 2021.

Expanded COBRA Coverage

Finally, the ARPA extends coverage for workers who have been laid off during the pandemic under the Consolidated Omnibus Budget Reconciliation Act (COBRA) Act. COBRA allows employees to remain on their employer’s health insurance for up to 18 months, but the employee was responsible for making the premium payments. Under ARPA, workers laid off or who received a reduction in work hours can receive six months of 100% subsidized coverage from April 1, 2021 to September 30, 2021.

Talk to a Lawyer Now

If you have questions about the benefits extended to you under the ARPA, talk to a knowledgeable California employment law attorney in your area today.