Friday, June 12, 2020

Cheap Labor Lobby wants taxpayers to foot the bill for "return to work" bonuses

Not only should the businesses use their own money to pay the "return to work" bonus but fomenting division in the workplace between employees already at work and those returning is horrible public policy.

Texas Republican Kevin Brady introduced a bill in Congress that if passed and signed into law would use taxpayer money to pay a "back to work" bonus instead of the business using their own money to finance the payment. 

From Congressman Brady's press release:

Washington, D.C. – Today, the top Republican on the House Ways and Means Committee Kevin Brady (R-TX) introduced the Reopening America by Supporting Workers and Businesses Act of 2020. This bill will help local businesses rebuild their workforce quickly by turning these unemployment benefits into a back-to-work bonus that will provide a bump to workers and help accelerate our economic recovery.

This bill will help local businesses rebuild their workforce quickly by turning these unemployment benefits into a back-to-work bonus that will provide a bump to workers and help accelerate our economic recovery. The bill includes:

  • Time limited back-to-work bonuses: Make work pay by allowing workers to keep up to two weeks of the supplemental federal unemployment benefits after accepting a job, comparable to a $1,200 hiring bonus. The bonus would be available to claimants beginning a week after the date of enactment and end July 31, 2020.
  • Return to work reporting: Strengthen program integrity by ensuring employers can report job refusals and that states provide clear notice to unemployment claimants about return to work obligations and good cause exceptions.
  •  Relief for non-profits: CARES Act provided additional relief for reimbursable employers, such as non-profits, to help offset the costs of unemployment benefits by 50%. Non- profits provide critical supports to low-income families and many are facing challenges reopening. This clarifies that non-profits do not have to pay the full amount and wait for reimbursement. Instead, states can reduce the amount owed up-front.
Not a week goes by without County Examiner asking questions of small business owners. Some have expressed that several employees have returned to work. It's not hard to imagine the level of divisiveness in the workplace that could be caused if one group of employees received the back to work bonus and another group did not.

Then there is the constant drumbeat from media frightening Americans that a second wave of lockdowns from COVID-19 are pending.

Businesses don't need Congressional legislative action to pay a return-to-work bonus either. They can and should use their own money to pay the bonus. Non-profits should not receive additional special treatment through indirect subsidies either; if they are cash strapped they can fundraise. 

Congressman Brady should know this. His Wikipedia biography shows he worked his way through college in the 1970's holding a variety of jobs such as construction worker, meat packer, manufacturing worker, waiter, and bartender. 

American adults and teenagers who've not returned to work are not lazy bums as his House colleague Dan Crenshaw would have you believe. 

Unfortunately Congressman Brady has not considered that PAY, legal status to work in the United States and the constant droning of politicians and media scaring Americans into believing another round of COVID-19 induced lockdowns is on its way are other factors to be examined.