Michigan Chamber of Commerce issued the following announcement on July 21.
With the extra $600 in federal unemployment assistance set to expire at the end of the month (July 25 in Michigan), talks about another coronavirus aid package is coming to a head in Washington DC.
Although negotiations about what should be in the bill still appear to be up in the air and significant disagreements exist, the US Chamber released five recommendations to Congress and the White House last week. The US Chamber requested that Congress enact targeted and temporary measures that address the following five key areas:
- Liability Protection Against Unwarranted Lawsuits - While the Michigan Chamber is working on state legislation to provide protections for employers operating in Michigan, we recognize this is a national issue and a national threat. The Michigan Chamber and US Chamber are urging Congress to provide employers, healthcare providers, non-profits and educational institutions a safe harbor from these types of lawsuits when they make good-faith efforts to follow applicable public health guidelines. Ideally, the legislation would give jurisdiction to federal courts versus allowing state courts to deal with these lawsuits.
- Support for Small and Mid-Size Employers – The US Chamber is urging Congress to continue to help employers who continue to struggle with the economic fallout caused by the coronavirus. They are advocating for a targeted approach to support, including: closing the gaps that existed in the CARES Act programs and providing additional relief for those businesses that cannot return to more normal operations as a result of the social distancing requirements necessary to prevent the spread of COVID-19. The Michigan Chamber supports this call for additional relief.
- Unemployment Benefits and Funding for Job Training - Over 17 million Americans are currently unemployed. The vast majority – 13.4 million – have been unemployed from between 5 and 26 weeks. While the economy has begun to recover, and this number will fall as millions continue to return to work, unemployment will remain elevated for some time as some jobs will not return, and some employers will permanently close. The US Chamber is arguing this warrants continued support for the unemployed, but it is critical that Congress take a more targeted approach to supporting the unemployed. Specifically, the additional $600 weekly unemployment benefit must be significantly revised, and Congress should support job training for those whose jobs will not return. The Michigan Chamber agrees with the assessment that the $600 in supplemental weekly unemployment benefits is causing significant distortions in the labor market and should be fixed. A recent study found that two-thirds of beneficiaries earn more on unemployment than they made while working. One-fifth earn at least double what they earned working, and the median replacement rate is 134%
Source: Michigan Chamber of Commerce
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