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However, the details of these new benefits may put some pressure on employers who are still trying to regain their fiscal footing, after a year in the slumped Covid economy. The COBRA health insurance subsidy requires self-insured employers to cover the premium and then seek reimbursement from the federal government. The ARP Act expanded qualifying reasons for an employee to take the FFCRA leave instituted in 2020: an employee is now eligible for leave if the worker has been exposed to Covid and awaiting test results (or the employer has requested Covid testing), or if the employer is obtaining Covid immunization. The federal government is also taking a tightened focus on the tax credits for employee leave, and employers will not get those credits if they are deemed to have discriminated in offering FFCRA leave in favor of highly compensated or full-time employees or based on employment tenure. Thus, the benefits come with additional strings for employers, at the same time that employers are still attempting to find willing, able, and qualified persons to replenish their workforce. The federal economy still lacks about 9 million jobs to recover from those jobs lost since the Covid pandemic erupted last spring.

That lagging national economy also suggests the ARP Act’s third round of stimulus payments and extended unemployment benefit payments are still a source of contention. Proponents argue these payments help workers survive, as not all businesses have reopened and recalled employees back to work and as some workers are still hesitant to return to the workplace at a risk of contracting the Covid virus. In contrast, opponents argue the stimulus payments and additional unemployment benefits create a financial incentive for individuals not to return to work, if they can receive equal or greater payments while simply staying at home. Several employers have reported problems in finding available, qualified, and willing job candidates. As well, those who receive stimulus payments and put the money into savings because they aren’t cash-strapped may dilute the intended economic spending boost. If spending lags, then business owners don’t necessarily see increased revenue to encourage expanding operations and hiring additional employees. Notably, the final enacted version of the ARP did not include Sen. Bernie Sanders’ amendment to raise the federal minimum wage to $15. While the House version had included the minimum wage raise, the Senate could not include such a provision to allow passage on a majority vote within the process of budget reconciliation. The issue appears destined to arise again, but for now employers are not under a federal mandate to raise wages.

TO SUM UP, the ARP Act does provide additional immediate relief funds for employers, such as the new influx of PPP money, employee retention credits, and state and local government emergency funding. Past that, the ARP Act focuses on incentives for individual workers, but the credits for businesses may have conditions and limitations that employers must carefully consider.

James V. Thompson, Attorney

Rainey, Kizer, Reviere & Bell, PLC jthompson@raineykizer.com www.raineykizer.com