I am seeing numerous employers and employees cheering the proposed coronavirus stimulus legislation that appears to pay furloughed employees their entire salaries for a period of up to four months, and with a maximum proposed limit of $1,100 per week. Other provisions apply to the unemployed and those independent contractors engaged in the “gig” economy.
The idea is to help businesses to survive closures and the loss of revenue — and the continuing personnel costs. Unfortunately, many things in life have unintended consequences.
Think about it. Employers are being incentivized to furlough employees with all of the employment costs borne by the taxpayer. It sounds like a win-win for both employers and employees. Especially the larger corporations with large cash reserves.
What happened to the contract between the employer and the state in paying for state unemployment and disability premiums?
The problem is that many of those employees furloughed are not guaranteed a job when they return in four months or if the returning employee will receive the same position, salary, and benefits.
Bottom line…
Be careful what you wish! However, it might be a great opportunity to explore employment alternatives to create multiple independent revenue streams from a part-time business that can be run from your home.
THIS BILL IS NOT AGREED TO BY BOTH THE HOUSE AND SENATE AND SIGNED BY THE PRESIDENT.