COVID-19
Federal Reserve – The Federal Reserve announced that it will provide up to $2.3 trillion in emergency loans to support the economy, including bolstering the Paycheck Protection Program (PPP) by supplying liquidity to financial institutions providing the loans to small businesses. They are prioritizing the hardest hit areas and are operating nine different lending facilities in targeted markets. The news bolstered markets. More details.
Federal Relief Bill – Due to partisan wrangling, a federal relief bill that would infuse an additional $250 billion (on top of the original $350 billion) into the Paycheck Protection Program failed to advance in the U.S. Senate. While many legislators were advocating a “clean” bill without any provisions other than the funding, most Democrats argued for additional monies to hospitals, states and municipalities and a bi-partisan group argued for additional restrictions to the program. Neither side could reach consensus and there will likely be another effort to pass legislation as early as next Monday. More details.
Paycheck Protection Program – Many industry leaders are calling for significant changes to the main loan program, the PPP. Some franchise systems were excluded from the program (seemingly inadvertently) and a coalition of independent restaurant owners is arguing that as currently written, the “per location” provisions disproportionately favor the large chains and franchisees. It’s also worth noting that agencies continue to release additional guidance. One of remaining unresolved issues is exactly how the loan forgiveness process will work. Many of these issues are likely to be addressed in additional rulemaking or the fourth relief bill. More details.
Price Gouging – California Governor Newsom issued an executive order expanding consumer protections against price gouging as California continues to respond to the COVID-19 pandemic. The order generally prohibits sellers of any kind from increasing prices on food, consumer goods, medical or emergency supplies, and certain other items by more than 10%. The order also gives additional tools to the California Department of Justice and Attorney General’s Office, among others, to take action against price gougers. Expect similar increased activity in numerous states. More details.
Worker Safety – Following new CDC guidelines, many jurisdictions are beginning to mandate employers provide protective gear, such as masks and gloves, for workers. California jurisdictions have been some of the first to enact requirements, namely San Diego, Los Angeles and Santa Barbara. The New Jersey governor announced this week that he will issue an executive order that all employees and customers of businesses still operating in the state wear face masks or other coverings. It will also limit customer capacity to 50% of the allowable maximum. More details.
Wages
California – The business community, led by the California Restaurant Association, is calling on the governor to delay the pending increase in the state minimum wage to $14/hr scheduled for Jan. 1, 2021 and then to $15/hr by 2022.To Access Align's Analysis: Log In or Subscribe
Charter Communications – The parent company of Spectrum announced starting wage increases of $1.50/hr effective immediately for field technicians and call center workers and committed to raising their overall starting wage to $20/hr by 2022.To Access Align's Analysis: Log In or Subscribe
Paid Leave
New York – As part of the FY 2021 budget agreement signed by the governor, many of the emergency paid leave requirements enacted to address the COVID-19 crisis were made permanent.To Access Align's Analysis: Log In or Subscribe
Los Angeles, CA – The mayor announced numerous exemptions to the recently-passed COVID-19 related-paid sick leave law that relaxed the new rules on a multitude of small businesses including restaurants which were closed due to city orders.To Access Align's Analysis: Log In or Subscribe
San Jose, CA – The city council unanimously approved an emergency paid sick leave policy that, like Los Angeles and San Francisco, is designed to fill the gaps created by the CARES Act, which does not cover employees in private-sector companies with more than 500 people and provides potential exemptions for businesses of fewer than 50 employees.To Access Align's Analysis: Log In or Subscribe
San Francisco, CA – The board of supervisors passed an emergency paid sick leave law that also covers those exempted by the federal CARES Act.To Access Align's Analysis: Log In or Subscribe
Labor Policy
Michigan – The governor issued an executive order that an employer shall not discharge, discipline or otherwise retaliate against an employee for staying home when he or she is at particular risk of infecting others with COVID-19.To Access Align's Analysis: Log In or Subscribe
Labor Activism
Fight for $15 – Workers at numerous national QSR brands in California engaged in “strikes” this week to call on their employers to provide more personal protective equipment and cleaning supplies to shield them from potential exposure to the viral disease while at work.To Access Align's Analysis: Log In or Subscribe
Unemployment Benefits – The labor community is cheering the additional $600/wk of unemployment benefits which works out to around $15/hr for a 40 hour week in many states.To Access Align's Analysis: Log In or Subscribe