by Matt Landers, Public Policy & Government Relations Director
| Apr 27, 2020
The GSBA Board of Directors has endorsed the Paycheck Guarantee Act
, proposed by Congresswoman Pramila Jayapal (WA-7).
"A federal paycheck guarantee would stanch more layoffs and unemployment, and quickly and reliably deliver relief to workers," says Representative Jayapal. "Workers would not be forced to apply for unemployment insurance, overwhelm that system and then have to once again find a job. Businesses of all sizes would be able to keep workers on payroll and benefits—and be able to quickly re-open—partially or fully—without having to rehire and retrain their workforce.”
GSBA thanks the Congresswoman and her office for the extensive outreach to small businesses, including GSBA members, on how to best structure this act. In particular, she heard the many frustrations around accessing supports from the CARES Act and has designed the Paycheck Guarantee Act to have as few barriers as possible so that relief can get in people's hands as fast and as easily as possible.
The Paycheck Guarantee Act would:
- Cover 100% of wages for workers earning up to $100,000, ensuring that employers are able to keep workers paid and out of unemployment lines
- Keep workers enrolled in employer-sponsored benefits, including health care
- Encourage employers to re-hire recently laid-off staff or furloughed workers by covering payroll retroactively to the start of the crisis
- Cover essential business expenses like rent to ensure that businesses don't shutter completely and can re-open when the pandemic ends
- Get support to employers and workers as quickly as possible, using existing payroll tax infrastructure to facilitate delivery of payments.
- Keep workers attached to the labor market and businesses ready to open, speeding up the economic recovery.