Labor and Employment Litigators

News

Mandatory COBRA Subsidy to be Paid by Employers

As part of the stimulus package that was enacted on March 11, 2021 (The American Rescue Protection Act or “ARPA”), employers are now required to provide temporary COBRA and state continuation (a/k/a Mini-COBRA, which is defined as plans with 19 or fewer employees) subsidies to former employees from April 1 through September 30, 2021. The DOL recently published guidance for employers along with model forms to be used to notify employees of the subsidies.

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Caroline Harrison
New Stimulus Bill Impacts Employers

On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (the “ARPA"), which is the third stimulus package since the first COVID-19 relief bill containing the Families First Coronavirus Response Act (FFCRA) was passed. This new stimulus package not only provides additional financial relief for small businesses, particularly food service establishments, it extends and expands optional tax credits that will reimburse employers who opt to provide paid sick and family leave due to COVID-19, which first became available under the FFCRA.

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Caroline Harrison