What Employers Need to Know About the Families First Coronavirus Response Act
March 19, 2020
In response to the coronavirus of 2019 (COVID-19), President Trump signed the Families First Coronavirus Response Act, H.R. 6201, into law on March 18, 2020. The Act provides various forms of relief including free COVID-19 testing, expanded food assistance and unemployment benefits, and requires employers to provide additional protections for healthcare workers. Additional bills are pending and likely to be finalized and provide additional relief.
Significantly, the Act also requires employers with fewer than 500 employees to provide paid sick leave and expanded family leave for employees. Employers with 500 or more employees are not subject to these requirements.
The key employment-related provisions of the bill are summarized below. These provisions will become effective within 15 days (April 2, 2020) – employers must act promptly to ensure that their policies comply with these new requirements.
Emergency Paid Sick Leave
Under the Act, employers with fewer than 500 employees will be required to provide paid sick leave to any employee who is:
- subject to a coronavirus quarantine or isolation order or who has been advised by a health care provider to self-quarantine due to coronavirus concerns;
- experiencing symptoms of coronavirus and is seeking a medical diagnosis;
- providing care for a family member who is self-isolating due to a diagnosis of coronavirus, experiencing symptoms of coronavirus and needs to obtain medical diagnosis or care, or quarantining due to exposure or exhibition of symptoms; or
- caring for a child whose school or place of care is closed, or the child care provider of the child is unavailable, due to coronavirus.
Full-time and part-time employees are eligible for paid leave under the Act. Full-time employees are to receive 80 hours of sick leave, and part-time workers are entitled to leave equal to the number of hours they work, on average, over a 2-week period.
The amount of pay employers are required to provide under the Act depends on the reason for an employee’s leave. Employees taking leave for themselves must be paid at their regular rate up to a cap of $511 per day and a total $5,110. Employees taking leave to care for a family member must be paid at two-thirds of their regular rate, with a cap of $200 per day and a total of $2,000.
Notably, the sick leave required under the Act must be provided in addition to any paid leave already provided by employers. Employers cannot require a worker to use any other available paid leave before using the sick leave required under the Act.
Finally, employers will be required to post a new notice containing information regarding the emergency sick leave provisions of the Act. The U.S. Department of Labor will create a model notice within the next week.
Emergency Family and Medical Leave Expansion
In addition to the new paid sick leave obligations, the Act amends the Family and Medical Leave Act (FMLA) and requires that employers with fewer than 500 workers must provide up to 12 weeks of family and medical (FML) leave for employees unable to work or telework because they have to care for a child if the child’s school or place of care has been closed, or if the child care provider of that child is unavailable due to a coronavirus emergency. To be eligible for FML leave under the Act, employees must have been employed for at least 30 days.
Under this provision, the first 10 days of leave may be unpaid, although a worker may choose to use accrued vacation days or other available medical, sick or PTO leave for those days. After the initial 10 days, workers on FMLA leave must be paid at two-thirds of their regular rate. The paid leave under this provision is capped at $200 per day and $10,000 in total.
In most cases, as required by the existing FMLA leave requirements, the new expanded FML leave under the Act is job-protected and an employer must return the employee to the same or equivalent position upon their return to work. The Act, however, provides an exception for employers with less than 25 employees if (1) the employee’s job no longer exists due to economic conditions or other changes in the employer’s operating conditions caused by the coronavirus pandemic, and (2) the employer makes reasonable efforts to restore the employee to an equivalent position.
Potential Exemptions
Importantly, under the Act, the Secretary of Labor is authorized to issue regulations exempting: (1) certain health care providers and emergency responders from paid leave benefits, and (2) small businesses with fewer than 50 employees from the newly added paid leave requirements “when the imposition of such requirements would jeopardize the viability of the business as a growing concern.”
Employer Tax Credits
The Act provides for a series of refundable tax credits for employers providing paid emergency sick leave or paid FMLA. Specifically, employers will be entitled to a refundable tax credit equal to 100 percent of qualified sick or family leave wages required by the Act. These tax credits will be allowed against the employer portion of Social Security taxes; however, if the credit exceeds the employer’s total Social Security taxes for all employees for any calendar quarter, the excess credit will be refundable to the employer.
Next Steps for Employers
Promptly review the Act, which is available here
. Employers need to assess which provisions are applicable to them and determine how to comply. There will be new regulations and additional legislation in the near future, so it is essential to stay on top of these developments. We are closely monitoring these matters and will provide updates.
Please contact either John Clifford at FortneyScott (jclifford@fortneyscott.com) or your FortneyScott attorney on how these changes affect your company’s compliance obligations.
Register for FortneyScott's Webinar on New OFCCP Regulations – What Federal Contractors Need to Know
Join FortneyScott attorneys on Thursday, September 10, 2026 from 12:00pm to 1:00pm EDT for a timely and practical webinar on the revised OFCCP regulations and how contractors should respond. To register, click here . On August 21, 2026, the OFCCP finally published its final rules upending long-standing affirmative action requirements for federal contractors. While the elimination of EO 11246 regulations was expected, the substantial changes to Section 503 were less expected. By September 21, contractors must not only update their systems to remove now banned requirements but also determine how they will meet their affirmative action requirements without data collection. We will break down the most important developments, explain which obligations remain in place, and highlight practical steps organizations can take now to reduce risk, preserve defensible compliance practices, and prepare for what comes next. In this webinar, you will learn how to: Identify the OFCCP changes most likely to affect your affirmative action program strategy; Evaluate how revised Section 503 requirements may affect disability-related data collection, outreach, and documentation; Understand continuing VEVRAA obligations for protected veteran compliance. Manage transition issues for current and upcoming AAP cycles; and Prioritize practical next steps for policies, records, audits, and stakeholder communication s. To register for this webinar, please CLICK HERE .
The U.S. Department of Labor (DOL) will publish in the Federal Register the three final rules impacting federal contractor regulations on Friday, August 21, 2026. Executive Order 11246 regulations – DOL finalized the rescission of its regulations for EO 11246, effective October 26, 2026, to eliminate the obligations of federal contractors to prepare affirmative action plans based on race and sex, in addition to nondiscrimination provisions, and additional compliance requirements. This is to align with EO 14373, wherein President Trump rescinded EO 11246. Section 503 of Rehabilitation Act – DOL finalized the elimination of the disability self-identification requirements as well as the 7% utilization goal. In addition, the CC-305 Form will be eliminated. DOL holds that the Americans with Disabilities Act prohibits employers, including federal contractors, from collecting voluntary disability identification from applicants and employees. The nondiscrimination and reasonable accommodation requirements are maintained. Contractors with 50 or more employees and $50,000 or more in contracts will continue to be required to prepare affirmative action plans and to assess their outreach and recruitment. DOL moved the administrative procedures provisions from EO 11246 regulations here. VEVRAA – DOL’s revisions to the VEVRAA regulations were mostly technical, retaining the obligation to provide voluntary self-identification of veterans and to prepare affirmative action plans. DOL added the administrative procedures to these regulations and updated the jurisdictional threshold from $150,000 to $200,000. Please contact your FortneyScott attorney or email us at info@fortneyscott.com for more information.
The EEOC voted 2 to 1 on Tuesday, July 21st to issue a Notice of Proposed Rulemaking (NPRM) to rescind the requirement for employers and other covered entities to file an annual report with the EEOC summarizing aggregate data on their employees’ race and sex (reports known respectively as the EEO-1, EEO-2, EEO-3, EEO-4, EEO-5, and EEO-6 reports or EEO Data Reports). This includes the rescission of recordkeeping requirements related to these reports. The proposal states that the Commission has determined the EEO Reports are inconsistent with equal employment opportunity law, may raise constitutional concerns, and that the collection of data is not narrowly tailored or necessary to enforce anti-discrimination statutes. EEOC determined that the reports, which had been collected since, 1966, have limited value, which was outweighed by the significant burdens they impose on employers and on the Commission. Once the NPRM is published in the Federal Register, individuals will have only 30 days to submit comments on the 60-page proposal. The Institute for Workforce Equality is planning to submit comments. Please contact your FortneyScott attorney or email us at info@fortneyscott.com with any thoughts you have on the proposed rescission, or on employer record-keeping obligations generally.
On Wednesday, June 24, 2026, the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) extended EEOC’s information collection under the Uniform Guidelines on Employee Selection Procedures (UGESP) through June 29, 2029. UGESP requires employers covered by Title VII to collect and maintain records on the race, sex and ethnicity of those impacted by their employment selection procedures but does not require employers to report the data. EEOC and other enforcing agencies can then demand to see such data in connection with any investigation of employment discrimination. Please contact your FortneyScott attorney or email us at info@fortneyscott.com for additional information.
The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: The Directive’s scope and coverage Reporting obligations under the Directive Status of Member State transposition Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance.
Join FortneyScott attorneys on Thursday, June 11, 2026, from 12:00 p.m. to 1:00 p.m. EDT for a complimentary webinar on the European Union (“EU”) Pay Transparency Directive (the “Directive”). To register, please click here . The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: · The Directive’s scope and coverage · Reporting obligations under the Directive · Status of Member State transposition · Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance. Register to attend. To register, please click here .
Register for FortneyScott's Webinar on New OFCCP Regulations – What Federal Contractors Need to Know
Join FortneyScott attorneys on Thursday, September 10, 2026 from 12:00pm to 1:00pm EDT for a timely and practical webinar on the revised OFCCP regulations and how contractors should respond. To register, click here . On August 21, 2026, the OFCCP finally published its final rules upending long-standing affirmative action requirements for federal contractors. While the elimination of EO 11246 regulations was expected, the substantial changes to Section 503 were less expected. By September 21, contractors must not only update their systems to remove now banned requirements but also determine how they will meet their affirmative action requirements without data collection. We will break down the most important developments, explain which obligations remain in place, and highlight practical steps organizations can take now to reduce risk, preserve defensible compliance practices, and prepare for what comes next. In this webinar, you will learn how to: Identify the OFCCP changes most likely to affect your affirmative action program strategy; Evaluate how revised Section 503 requirements may affect disability-related data collection, outreach, and documentation; Understand continuing VEVRAA obligations for protected veteran compliance. Manage transition issues for current and upcoming AAP cycles; and Prioritize practical next steps for policies, records, audits, and stakeholder communication s. To register for this webinar, please CLICK HERE .
The U.S. Department of Labor (DOL) will publish in the Federal Register the three final rules impacting federal contractor regulations on Friday, August 21, 2026. Executive Order 11246 regulations – DOL finalized the rescission of its regulations for EO 11246, effective October 26, 2026, to eliminate the obligations of federal contractors to prepare affirmative action plans based on race and sex, in addition to nondiscrimination provisions, and additional compliance requirements. This is to align with EO 14373, wherein President Trump rescinded EO 11246. Section 503 of Rehabilitation Act – DOL finalized the elimination of the disability self-identification requirements as well as the 7% utilization goal. In addition, the CC-305 Form will be eliminated. DOL holds that the Americans with Disabilities Act prohibits employers, including federal contractors, from collecting voluntary disability identification from applicants and employees. The nondiscrimination and reasonable accommodation requirements are maintained. Contractors with 50 or more employees and $50,000 or more in contracts will continue to be required to prepare affirmative action plans and to assess their outreach and recruitment. DOL moved the administrative procedures provisions from EO 11246 regulations here. VEVRAA – DOL’s revisions to the VEVRAA regulations were mostly technical, retaining the obligation to provide voluntary self-identification of veterans and to prepare affirmative action plans. DOL added the administrative procedures to these regulations and updated the jurisdictional threshold from $150,000 to $200,000. Please contact your FortneyScott attorney or email us at info@fortneyscott.com for more information.
The EEOC voted 2 to 1 on Tuesday, July 21st to issue a Notice of Proposed Rulemaking (NPRM) to rescind the requirement for employers and other covered entities to file an annual report with the EEOC summarizing aggregate data on their employees’ race and sex (reports known respectively as the EEO-1, EEO-2, EEO-3, EEO-4, EEO-5, and EEO-6 reports or EEO Data Reports). This includes the rescission of recordkeeping requirements related to these reports. The proposal states that the Commission has determined the EEO Reports are inconsistent with equal employment opportunity law, may raise constitutional concerns, and that the collection of data is not narrowly tailored or necessary to enforce anti-discrimination statutes. EEOC determined that the reports, which had been collected since, 1966, have limited value, which was outweighed by the significant burdens they impose on employers and on the Commission. Once the NPRM is published in the Federal Register, individuals will have only 30 days to submit comments on the 60-page proposal. The Institute for Workforce Equality is planning to submit comments. Please contact your FortneyScott attorney or email us at info@fortneyscott.com with any thoughts you have on the proposed rescission, or on employer record-keeping obligations generally.
On Wednesday, June 24, 2026, the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) extended EEOC’s information collection under the Uniform Guidelines on Employee Selection Procedures (UGESP) through June 29, 2029. UGESP requires employers covered by Title VII to collect and maintain records on the race, sex and ethnicity of those impacted by their employment selection procedures but does not require employers to report the data. EEOC and other enforcing agencies can then demand to see such data in connection with any investigation of employment discrimination. Please contact your FortneyScott attorney or email us at info@fortneyscott.com for additional information.
The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: The Directive’s scope and coverage Reporting obligations under the Directive Status of Member State transposition Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance.
Join FortneyScott attorneys on Thursday, June 11, 2026, from 12:00 p.m. to 1:00 p.m. EDT for a complimentary webinar on the European Union (“EU”) Pay Transparency Directive (the “Directive”). To register, please click here . The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: · The Directive’s scope and coverage · Reporting obligations under the Directive · Status of Member State transposition · Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance. Register to attend. To register, please click here .
On Thursday, May 14, the U.S. Department of Labor’s Wage and Hour Division issued a technical amendment removing the salary threshold increases under 29 C.F.R. Part 541, adopted in April 2024. DOL stated that it was following the decisions made by federal courts in November, and that the amendment reinstated the 2019 salary levels applicable to the executive, administrative, and professional exemptions under the Fair Labor Standards Act. The current salary levels are $684 per week for exempt employees and $107,432 annually for highly compensated employees. This change codifies the enforcement posture DOL has maintained since the 2024 rule was invalidated. While this does not alter current compliance obligations, it resolves regulatory inconsistency by restoring the 2019 framework in the regulations and eliminating the 2024 provisions. Employers should confirm that exemption classifications continue to be evaluated against the reinstated 2019 thresholds and remain attentive to any future rulemaking in this area. Stay tuned. FortneyScott will continue to monitor whether there will be further substantive revisions to the white collar regulations. If so, it is likely be in the DOL’s regulatory agenda, which we understand will be published in the near future. Should you have any questions, please reach out to your FortneyScott attorney.
Federal contractors are facing immediate changes to implement stepped-up efforts to restrict DEI discrimination, including new mandatory contract clauses, expanded audits, and significant potential legal exposure. These far-reaching changes will impact prime contractors and all tiers of subcontractors. Any employer that is a federal contractor should immediately prepare for these new compliance obligations.
DOL Proposes New Joint Employer Standard In an effort to create a uniform, nationwide standard for determining joint employer status, the U.S. Department of Labor’s Wage and Hour Division will publish a Notice of Proposed Rulemaking (NPRM) in the Federal Register on April 23, 2026. The proposed Joint Employer Rule aims to restore a standard similar to the more business-friendly Trump 1.0 rule. Specifically, the proposed rule clarifies when multiple organizations would be considered joint employers under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. Comments are due within 60 days of the published date, or June 22, 2026. The proposed rule seeks to end nearly a decade of vacillating rules, as both the Trump and Biden administrations had tried promulgating a final rule previously. Those prior attempts created a series of conflicting executive and judicial rulings. As stated by acting Labor Secretary Keith Sonderling, this NPRM is intended to establish a “clear standard on joint employment.” Four-Factor Test The proposed rule modifies the Trump 1.0 standard, which focused heavily on requiring actual control by one company over another to establish joint employment. A prior judicial challenge to that approach was successful, requiring some modification to any new standard introduced thereafter. The proposed rule, therefore, responds by offering a four-factor test that is still heavily weighed on aspects of control. The four factors are whether a company: has the power to hire or fire a worker; supervises or controls a worker’s schedule or conditions of employment to a substantial degree; determines the rate and method of payment; and maintains a worker’s employment records. No single factor is dispositive, and the analysis will focus on the totality of the circumstances. Single National Standard Still a Goal The DOL acknowledged that some circuit courts continue to consider more factors and said the four listed factors were “not exhaustive.” Additionally, other federal agencies and several states have their own joint employer standards, some of which are directed at specific industries. For instance, the NLRB finalized its joint employer rule in late February 2026, with a similarly aligned standard that has some variances from DOL’s proposed standard. A final rule is anticipated soon after the comment period closes. Once issued, the rule may be subject to judicial challenges from interested parties that previously opposed similar regulatory approaches. Contact your FortneyScott attorney for additional information on how to submit comments and/or prepare for its impact on your workforce.
Federal contractors are facing immediate changes to implement stepped-up efforts to restrict DEI discrimination, including new mandatory contract clauses, expanded audits, and significant potential legal exposure. These far-reaching changes will impact prime contractors and all tiers of subcontractors. Any employer that is a federal contractor should immediately prepare for these new compliance obligations. The Federal Acquisition Regulatory Council (FAR Council), which sets government-wide procurement policy and regulation for all federal agencies, has moved quickly to implement Executive Order (EO) 14398 , Addressing DEI Discrimination by Federal Contractors. Specifically, the FAR Council: Issued government-wide implementation guidance and class deviation language for all federal agencies to incorporate a mandatory contract clause, as prescribed in EO 14398, as soon as April 24, 2026, in new solicitations, and by July 24, 2026, for bilateral modifications of existing contracts. The class deviation authorizes agency-wide implementation of new requirements in federal contracts before the Federal Acquisition Regulations (FAR) are amended formally. Requested emergency approval, under the Paperwork Reduction Act (PRA), to allow immediate enforcement of EO 14398’s information collection and reporting requirements. Join FortneyScott for a complimentary briefing on Monday, April 27, at noon ET . Please register here . Contact your FortneyScott attorney for additional information on how to prepare for this new contract clause.
