Congress Passes $2 Trillion Stimulus Bill that Limits or Reduces Pay for Employees of Certain Companies Receiving Federal Loans or Loan Guarantees

The largest stimulus bill in U.S. history conditions the granting of federal loans and loan guarantees on recipient companies’ agreement to limit (or in some cases reduce) employee compensation for up to a six-year period.

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On March 27, 2020, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (‘‘CARES Act”) which passed both the U.S. Senate and the House of Representatives earlier last week with bipartisan support. The CARES Act…