AN UPDATE FROM NAW GOVERNMENT RELATIONS TEAM - 12.11
Latest on Paycheck Protection Program
Extension and possible expansion of the PPP will almost certainly be included if a COVID relief package gets through Congress this month. Moreover, even if a larger COVID package is not agreed to, there is still a chance that a PPP bill could pass.
One of the key issues to be decided on the PPP is whether Congress will pass legislation to reverse the IRS ruling that PPP borrowers cannot deduct otherwise-tax-deductible expenses if paid with a forgiven loan. There is broad and bi-partisan support in both the House and Senate for fixing this IRS-created problem, but Treasury Secretary Mnuchin is adamantly supporting the IRS position and opposed to Congress acting to reverse the agency decision. NAW and our association colleagues have been aggressively working to persuade Congress to act to enforce Congressional intent despite the Secretary’s opposition.
We have helped organize a letter to Congress that almost 700 trade and business groups have signed – and that many signatures make clear the intensity of the business community commitment on this issue. You can read our letter HERE.
Also, NAW sent out a TAKE ACTION issue alert to our members yesterday urging all businesses concerned about this issue to contact their Representative and Senators asking them to act on legislation before the end of this month. If you did not receive our email yesterday, you can easily compose and send a message via the NAW website:
Please take just a moment now to click here and contact your legislators urging reversal of this IRS ruling.
In an op-ed yesterday in the Houston Chronicle, Senator John Cornyn (TX) said it’s time for Congress to pass the Small Business Expense Protection Act to safeguard small businesses’ tax deductions during this unprecedented pandemic. The Small Business Expense Protection Act will clarify Congress’ intent and ensure businesses are still able to deduct these business expenses as usual. The bill has three dozen bipartisan cosponsors, and this fix won’t cost one more dollar of federal money than expected because this was Congress’ intent all along. To read the full op-ed, click HERE.
Latest on the Next Congressional Pandemic Relief Package
Congressional leaders are barely talking, and renegade centrists are trying to cut a deal that Republicans don’t like. It’s the latest evidence Washington is broken: at the peak of the worst public health crisis in a century, the White House and Congress are struggling to deliver another round of relief. And time in the lame duck is quickly running out.
This week, a bipartisan coalition released an outline of its COVID-19 relief proposal, but the path forward on a deal remains unclear. Senate Majority Leader Mitch McConnell and Minority Leader Chuck Schumer are still at odds over establishing a liability shield for businesses and providing state and local funding.
The outline includes a $300-per-week supplemental unemployment benefit for four months and funds a second round of loans for the Paycheck Protection Program for businesses with 300 or fewer employees. Many employers – including many NAW members – report that the bonus payment has made it difficult for them to hire or re-hire workers.
Lawmakers from both parties have said that any COVID-19 relief deal would be attached to a government-spending bill. Current stopgap funding for federal agencies runs out at midnight tonight. Yesterday, the House voted on a seven-day continuing resolution to avert a shutdown. However, there is now a roadblock in the Senate and they have not yet passed that funding extension bill.
Negotiations on a COVID-19 relief package and a bill to fund the government past December 18th will continue throughout the weekend and into next week.
Latest on Liability Protections for Employers
This week, Senate Leader Mitch McConnel agreed to drop liability protections for businesses as long Democrats agreed to also exclude state and local aid. Leader McConnell has long called a liability shield his "red line," while Democrats have rejected his legislation that hasn't included state and local assistance. Leader McConnell suggested those fights can continue next year, given the likely need for another relief package. Democratic leaders quickly rejected dropping aid to states and localities. NAW continues to fight for liability protections for employers.
A recent report in the Washington Post claims that lawmakers have more information now than they did in the spring about the potential for virus-related lawsuits. And, according to the article, data shows that the potential “flood” of litigation has not come.
An online complaint tracker from the law firm Hunton Andrews Kurth shows that out of an overall pool of about 6,500 lawsuits filed across the country so far, only 116 have been filed by employees over issues such as lack of personal protective equipment, exposure or infections at work, and death. To read the full story in the Washington Post, click HERE.
Additionally, with the vaccine rollout weeks away, many lawmakers are beginning to question the need for additional business liability protections at all.
NAW would appreciate your feedback on the employer liability protection issue. Please let us know your concerns and if you have or expect to experience issues with liability protections with your business related to COVID-19. Send your comments to badami@naw.org
Latest on Economic Recovery and Re-Opening the Workplace
As the Coronavirus Pandemic continues to impact the United States economy and businesses across the nation, it can be hard to decipher how new regulations and laws may impact your business. To help you manage these issues NAW is providing information about reports, webinars and seminars that you may find useful:
Register for NAW 2021 Digital Summit, January 27 & 28
NAW's first Digital Summit will be an event like none other hosted in the history of NAW. As we turn the page on 2020 and enter 2021, our event will focus on "Leading in a Time of Transition." This highly interactive virtual event will capture your attention from start to finish. We're including some surprise content and speakers you'll only experience if you attend our event. All of these are reasons for you to bring more team members to this event. Register today!
Free NAW Webinar December 15: Value-Added Services as a Survival Strategy: Real Value Isn’t Free
Many distributors have historically given away services. Now that assortment and availability have been commoditized, distributors are finding that a strong service menu can differentiate them. However, “free” services are usually poorly developed and managed — not to mention, they include costs without clear revenues. Join NAW and Ian Heller of Distribution Strategy Group for a free webinar on Tuesday, December 15, at 2:00 p.m. ET, to hear Ian’s take on the alternative.
From Littler Law Firm:
Bouncing Back (and Forth): Statewide Reopening and Mitigation Steps
As the pandemic unfolds, government officials are reevaluating their health and safety protocols and adjusting workplace guidance. This post provides links to key reopening orders and/or mitigation measures issued in recent weeks, at the statewide level. To read more, click HERE.
From Covington Law Firm:
Technology Company Issues in the New Congress and Administration
Monday, December 14, 2020 at 3:00 p.m. ET
Join Covington for an off-the-record briefing on the likely challenges and opportunities tech companies will face in the new Congress and Administration. The briefing is designed to equip legal and business leaders with crucial information on the key issues impacting the technology industry following the most divisive election in U.S. history, combined with the unfolding repercussions of the COVID-19 pandemic. Sharing unique insights and perspectives gained representing some of the world’s most successful technology companies, as well as from their leadership positions in previous administrations, we will focus on:
- The New Administration and Congress
- Antitrust
- Telecommunications
- Privacy
- Cross-border Investment & National Security
- China and other Global Trading Partners relevant to the Technology Industry.
To register, click HERE.
Webinar from Littler Law Firm:
2020 Virtual Benefits Symposium Addressing Issues in the New Normal
December 17, 2020 at 1:00 p.m. ET
This complimentary series of engaging and informative courses will address the most significant issues on which employers should focus with respect to the maintenance and governance of employee benefit plans and how COVID-19 affects workplace benefits. It will discuss how to successfully navigate through these potentially dangerous waters, providing drafting guidance and current best practices. The hands-on techniques that are discussed will be of value to all that have a role in negotiating with employees and drafting employee agreements.
To register, click HERE.
Stateside Associates publishes a daily report about State and Local Government responses to the evolving situation. To read their latest report, click HERE.
We are also providing a link to a spreadsheet that includes state and local COVID-19 response information provided by MultiState Associates. To view their spreadsheet, click HERE.
Jade West, Chief Government Relations Officer
Blake Adami, Vice President-Government Relations
Seth Waugh, Associate Vice President-Government Relations
National Association of Wholesaler-Distributors
The above information and links to other information has been prepared by NAW for the general information of NAW members. It is not intended to, and does not, provide tax, legal or professional advice concerning any specific matter. You should not act on the information without first obtaining professional advice and counsel.