The President has signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which is a $2 trillion relief package aimed at helping mitigate some of the economic impact of the COVID-19 pandemic.
The Act is massive and includes certain provisions particularly relevant to employers. Among other things, the Act:
- Creates the Paycheck Protection Program (“PPP”), which provides for loans to small businesses (those with fewer than 500 employees) to cover payroll costs, among other things.
- Increases the amount of unemployment compensation payments, creates a Pandemic Unemployment Assistance Program, and makes unemployment compensation available to independent contractors, “gig workers,” and self-employed individuals.
- Creates a program for loans to mid-sized businesses (500-10,000 employees) who comply with specific requirements, including union neutrality and retention of 90 percent of their employees.
- Provides for loans to certain business sectors, including airlines and hospitals.
- Provides a payroll tax credit for employers who retain at least 50 percent of their employees.
- Provides corrections for certain provisions in the Families First Coronavirus Response Act (“FFCRA”).
- Extends the deadline for submitting payroll taxes.
The Act also includes additional tax and benefits provisions and numerous provisions that are not specifically employment-related, including direct payment to affected individuals, grants to states and municipalities, and provisions related to medical supplies.
FordHarrison attorneys will be providing a more detailed analysis of specific employment-related provisions of the Act.
If you have any questions regarding this Alert, please contact the authors, Jeff Mokotoff, jmokotoff@fordharrison.com, partner in our Atlanta office, or Garrett Buttrey, gbuttrey@fordharrison.com, associate in our Washington, D.C. office. Of course, you may also contact the FordHarrison attorney with whom you usually work.
FordHarrison is closely monitoring the spread of Coronavirus and has implemented continuity plans, including the ability to work remotely in a technologically secure environment when necessary, to ensure continuity of our operations and uninterrupted service to our clients. We are following all CDC guidelines and state and local laws as applicable. We are committed to ensuring the health and welfare of our clients, employees, and communities while continuing to provide our clients with the highest quality service. Please see our dedicated Coronavirus Taskforce page for the latest FH Legal Alerts and webinars on Coronavirus, as well as links to governmental and industry-specific resources for employers to obtain additional information and guidance. For more information or to be connected with a Coronavirus Taskforce attorney, please contact clientservice@fordharrison.com.