Legal Alert: Highlights of President Biden’s American Rescue Plan Act



On March 11, 2021, President Biden signed into law the $1.9 trillion American Rescue Plan Act of 2021 (ARPA), a package of changes in the law designed to stimulate the economy and provide economic relief to individuals and businesses hurt by the pandemic. Because the changes are extensive and no one summary can do justice to all the changes, we have collected here links to a series of articles from our partner law firms that summarize the changes.

Broad Overview of ARPA

Broad Overview of the Employment Law Provisions of ARPA

Families First Coronavirus Response Act (FFCRA) Paid Leave Provisions of ARPA

In addition to the Fisher Phillips, Morgan Lewis, and Ogletree Deakins articles noted above, the following articles focus on the tax credit provisions of ARPA that relate to the FFCRA and are effective from April 1, 2021 to September 30, 2021:

Because ARPA amended the already complicated text of the FFCRA, some of the revised provisions of the FFCRA are open to different interpretations. It will be up to the federal Department of Labor and the IRS to provide clarity with the updates they post on their websites: DOL FFCRA homepage and IRS FFCRA homepage. It is anticipated that both agencies will issue guidance on or before April 1.

Employee Retention Credit Provisions of ARPA

The following article addresses the employee retention credit (ERC) provisions of ARPA, which will be in effect until December 31, 2021:

COBRA Premium Subsidy Provisions of ARPA

In addition to the Fisher Phillips and Morgan Lewis articles noted above, the following articles focus on the COBRA premium subsidy provisions of ARPA, which will be in effect from April 1, 2021 to September 30, 2021:

Employers with questions about the subsidy should contact their group health insurance carrier and/or outsourced COBRA administrator. Also look for the federal Department of Labor to post updates on the subsidy on its COBRA homepage and/or Coronavirus Resources homepage.

Unemployment Compensation Benefits Provisions of ARPA

In addition to the Fisher Phillips, Morgan Lewis, and Ogletree Deakins articles noted above, the following articles focus on the unemployment compensation benefits provisions of ARPA, which have been extended to September 6, 2021:

Employers with questions about unemployment comp benefits should review the unemployment comp section of the applicable state department of labor’s website (Connecticut, New Jersey, and New York).

Dependent Care FSA Provisions of ARPA

As the following article explains, ARPA increased the amount that may be excluded from taxable income in 2021 for dependent care flexible spending accounts (FSAs):

Pension and Executive Compensation Provisions of ARPA

In addition to the Fisher Phillips and Morgan Lewis articles noted above, the following articles focus on the pension and executive compensation provisions of ARPA:

Small Business Assistance and Paycheck Protection Program Provisions of ARPA

The following articles focus on the small business assistance and Paycheck Protection Program provisions of ARPA:

Questions?

If you have questions, please contact your local Pro Bono Partnership office.

This document is provided as a general informational service to volunteers, clients, and friends of Pro Bono Partnership. It should not be construed as, and does not constitute, legal advice on any specific matter, nor does distribution of this document create an attorney-client relationship.