The Senate passed the Families First Coronavirus Response Act (Act) which provides unemployment benefits, free coronavirus testing, Medicaid funding, food assistance, and mandates that employers provide paid leave. The Senate bill passed following corrections to the bill passed by the House late Saturday evening. President Trump, who has expressed support for this Act, is expected to sign it into law later today. The Act is an effort to boost the government’s response to the COVID-19 coronavirus pandemic, as well as stimulate the economy in light of COVID-19 coronavirus.

Here are the main takeaways from the Act:


· The Act provides free coronavirus testing;


· The Act expands the Family and Medical Leave Act (FMLA) by requiring that employers provide a total of 12 weeks paid leave to employees who are in quarantine, caring for a family member with COVID-19 coronavirus, or are caring for children whose schools have closed;

· Employers are also required to provide employees with 80 hours of paid sick leave under the Emergency Paid Sick Leave Act to employees who are in quarantine, caring for a family member with COVID-19 coronavirus, or are caring for children whose schools have closed;

· States will receive additional funding to handle the influx of applications for unemployment benefits as an increase in unemployed is expected;

· The Act requires that States demonstrate an ease in eligibility requirements for unemployment compensation including waiving work search requirement and the waiting week to obtain additional federal funding for unemployment benefits;

· The Act expands WIC and SNAP benefits; and

· The Act increases Medicaid funding and strips the employment requirement for Medicaid.

The Act amends, on a temporary basis, the threshold for FMLA coverage from 50 or more employers to employers with fewer than 500 employees. The first 10 days of leave under this provision may be unpaid, but the first 10 days may be paid if the employee elects to take leave under the Emergency Paid Sick Leave Act. Thereafter, the employer is required to pay the employee two thirds pay until the twelve-week period is exhausted. Many employers not previously subject to the FMLA must now provide job-protected leave to employees for a COVID-19 coronavirus designated reason.

Moreover, employers with fewer than 500 employees are required to provide two weeks of sick leave at full pay for employees for a designated COVID-19 coronavirus reason. These employees are required to pay employees their regular pay for 80 hours or a number of hours equal to the number of hours the employee works on average in a two-week period if the employee is a part-time employee. The Emergency Paid Sick Leave Act does not carry over from one year to the next.

If providing employees paid leave would jeopardize the viability of a business as an ongoing concern, the employer may request that the Secretary of Labor exempt it from both the Emergency Family and Medical Leave Expansion Act and Emergency Paid Sick Leave Act. This exemption, however, is only available to employers with fewer than 50 employees. Under the Act, employers are eligible for a 100% tax credit on all paid leave wages, as well as a credit against payroll taxes.

The White House has proposed a third phase of relief. The third phase proposal includes $50 billion to aid the airline industry, $150 billion for other distressed sectors of the economy, $500 billion total in direct payments to Americans paid in two rounds, and the creation of a small business interruption loan program. The third phase proposal, as of now, does not include a payroll tax cut which President Trump had suggested he wanted to include in the package.

The Act takes effect 15 days after President Trump signs it into law. We are continuing to monitor the COVID-19 coronavirus pandemic, as well as the third phase of proposed legislation. With the Act expected to be signed by President Trump later today, employers are urged to assess the effects the temporary measures will have on its workforce and business.

If you have any questions about the Families First Coronavirus Response Act, please feel free to contact Kemp Smith’s Labor and Employment Department at 915-533-4424. We are preparing a webinar to discuss practical considerations and answer commonly raised questions in the very near future.


Clara (C.B.) Burns  - clara.burns@kempsmith.com

Michael D. McQueen - michael.mcqueen@kempsmith.com

Charles High - charles.high@kempsmith.com

Abe Gonzalez - abe.gonzalez@kempsmith.com

Gilbert L. Sanchez - gilbert.sanchez@kempsmith.com

Victoria del Campo - victoria.delcampo@kempsmith.com