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America’s New COVID-19 Relief Package — Unpacked

Client Alert

On March 11, 2021, President Biden signed the highly anticipated American Rescue Plan Act (the “Act”) into law, a $1.9 trillion COVID-19 relief bill aimed at addressing and resolving many of the lingering questions and concerns following the expiration of the Families First Coronavirus Response Act (“FFCRA”) on December 31, 2020.

Among the most notable provisions of the Act include the following:

FFCRA Tax Credit Extension | While employers are no longer mandated to provide paid sick leave to covered employees under the FFCRA, the Act grants an extension to the government tax credit previously provided to employers under the FFCRA if an employer elects to continue such paid time off to its employees. This tax credit remains available through September 2021 for employers with fewer than 500 employees. In addition, the Act now gives paid family leave for 12 weeks, instead of 10 weeks, ultimately providing an employee 14 weeks of paid leave when including the paid sick leave. Finally, the Act resets an employee’s FFCRA availability beginning on April 1, 2021. Meaning, any FFCRA time used before April 1, 2021 will not count against the employee’s leave entitlement after April 1, 2021.

COBRA Coverage | Also through September 2021, the federal government will subsidize the entirety of COBRA premiums for employees (and their covered family members) facing layoffs, ensuring health insurance coverage despite COVID unemployment concerns.

Unemployment Benefits | Prior to the passage of the Act, the weekly $300 unemployment supplement was set to expire in mid-March; however, now, these supplemental payments have been extended through September 6, 2021 — the first $10,200 of which will be tax-free for households earning up to $150,000. The Act additionally provides new protections for self-employed workers otherwise uncovered by state benefits.

Based on the changes to the FFCRA and the increased availability of vaccines, we recommend that clients consider revoking their FFCRA leave policies to avoid renewed employee eligibility for paid leave, including increased paid family leave for 12 weeks. If employers continue to provide paid leave under the FFCRA, they will remain eligible for payroll tax credits, up to the permitted maximums, for eligible leave time, through September 30, 2021.

As businesses across the country witnessed firsthand last year, federal and state legislation related to the COVID-19 pandemic is ever-evolving and requires a watchful eye to remain in the know. For more information on any of the above-provisions or for any questions related to the American Rescue Plan Act, please contact BMD Labor and Employment Partner Bryan Meek at bmeek@bmdllc.com or 330.253.5586.

Thank you to Monica Andress for her assistance drafting this Client Alert.


Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.

Corporate Transparency Act Ruling from the U.S. Supreme Court

The U.S. Supreme Court recently ruled on the enforceability of the Corporate Transparency Act (CTA), lifting an injunction previously imposed by the Fifth Circuit. However, a separate nationwide injunction remains in effect, meaning businesses are still not required to comply with the CTA’s reporting requirements. FinCEN continues to accept voluntary reporting while enforcement remains paused.

Lead Paint Contamination and Resources for Ohio Landlords

Children are exposed to lead-based paint, which was used in most homes until it was banned in the US in 1978 and “can severely damage the brain and central nervous system causing coma, convulsions and even death.” Property owners and landlords should educate themselves on regulations and resources to mitigate their own liability.