The White House and Senate reached a $2 trillion deal aimed at stimulating the US economy, which has been savaged by the response to Covid-19. CNN reported on the deal today.
Yahoo Finance reported the bill has a special provision for airlines and has money for other affected industries, from cruise ships to hotels and restaurants. It also includes $1,200 checks for individuals.
Senate Majority Leader Mitch McConnell tweeted that the stimulus is a historic relief package for the pandemic and said he expects the Senate to pass the package today. Senate Minority Leader Charles Schumer’s office said the stimulus package includes unemployment assistance for self-employed and gig economy workers.
The stimulus legislation follows the “Families First Coronavirus Response Act,” which was signed by President Trump last week and includes 80 hours of paid sick leave for employees at companies with fewer than 500 workers. The sick leave is for workers who have Covid-19 or are caring for someone who does. It also adds tax credits for companies to pay for the sick leave. It had raised multiple questions for staffing firms, but the US Department of Labor released a guidance Q&A on the act.
More legislation prompted by Covid-19 is expected over time, including further economic stimulus packages.
Stephen Dwyer, senior VP and chief legal officer at the American Staffing Association, said the organization is working to get relief for staffing firms.
“ASA is advocating for relief in the form of financial assistance to our industry,” Dwyer said. “We’re engaged on it in a full-court press to secure financial assistance for staffing firms to help with the paid-sick-leave payments.”
The ASA today also announced a partnership with the Retail Industry Leaders Association, in which ASA provides an online directory to connect RILA members to ASA member staffing agencies that can fill roles such as warehouse workers, store clerks and others.
The effective date of the “Families First Coronavirus Response Act” already signed by the president is April 1, according to the new guidance from the Department of Labor.
The new Department of Labor Q&A guidance offers more of a definition on how to calculate 500 workers under the threshold and, for client companies, includes workers from temporary agencies. Independent contractors are not considered employees for the purposes of the threshold. The Department of Labor is also adopting the integrated employer test under the Family and Medical Leave Act of 1993 to determine whether co-owned companies can be combined. Law firm Littler Mendelson released an update on the new Department of Labor Q&A guidance on Tuesday.