On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (HR 6201) (the “Bill”) after the Senate swiftly voted to approve it. The Bill is expected to take effect within 15 days.
We describe in detail several key components of the Bill in our March 17, 2020, Client Alert, which will impact many employers, including emergency provision of paid sick leave and the emergency expansion of the rights afforded employees under the Family and Medical Leave Act.
It appears that the Senate did not make any changes to the Bill before passing it. As a result, loopholes and concerns with the House bill remain, including the fact it does not apply to employers with over 500 employees. Mitch McConnell is quoted as saying, “I do not believe we should let perfection be the enemy of something that will help even a subset of workers.”
This Bill is referred to as Phase 2 of the federal government’s emergency response to the potential economic consequences from the global coronavirus outbreak. Phase 3 is an even larger stimulus package that may include $1 trillion in funds, including direct payments to individuals, among other things.
