March 27, 2020
Reconsidering Layoffs in Light of the New Stimulus Bill
Dear EA Clients,
As the current COVID-19 crisis has hit, many of you have been forced to make some very difficult decisions, from pay cuts, to layoffs, to complete shutdowns of your businesses.
We wanted to alert you right away that you may want to reconsider all of those decisions.
As most of you have probably seen by now, Congress passed an unprecedented stimulus bill today that is full of things to help struggling businesses. One aspect of the bill, the Paycheck Protection Program, will essentially allow you to have the government foot the bill for your payroll, rent, utilities, and mortgage interest for the next two months. (It’s obviously a little more nuanced than that, but that is the general idea.)
With this new information, we strongly recommend that you hold off on any plans to lay off employees. If you have already laid off employees, we strongly recommend that you consider bringing them back. Again, based on everyone’s understanding of the bill right now, the government will cover the cost of paying them.
We will post more information soon on our COVID-19 Resource Page. We will also be hosting a webinar on Wednesday, April 1st at 11:00am CST to explain the Payroll Protection Program in more detail and answer questions. You will be able to sign up for the webinar on the Resource Page within the next 24 hours.
The Employer Advantage Team