Summary of Provisions of The CARES Act and Associated Appropriations Language Related to Labor and Small Businesses
Small businesses across the U.S. have been hit especially hard in recent weeks as Americans shelter-in-place and practice social distancing to further prevent the spread of COVID-19. In response, Congress has passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to help workers, families, and businesses during this time of economic uncertainty. The main feature of the Act for small businesses—recognized as companies with 500 employees or fewer—is the availability of emergency grants and forgivable loans to cover immediate operating and payroll costs. Notable labor provisions include changes to paid leave reimbursement, a welcomed expansion of paid sick and childcare leave from the Families First Coronavirus Response Act, and other significant incentives to small businesses to retain workers who would otherwise likely be laid off.
We have summarized the provisions impacting labor and small businesses of the CARES Act to clarify how they will affect our clients. Our summary is available here:
We are able to answer any questions you may have. Please note that this is a summary and not a substitute for reading the CARES Act. There are sections that have not been covered in this summary, and the covered sections have been truncated for readability. If you have any questions about a particular section, we encourage you to contact Dennis Cariello or Michael Tecson at (312) 946-1800.