COVID-19 Update September 4, 2020

The biggest news of the week was that the unemployment rate has dropped below 8% (10.2% in July), an assuring sign that we are headed into a recovering economy.

In regard to the often-discussed presidential memorandums, some information came out of DC today to help with clarifications. First, the House’s Ways and Means Committee Republican Leader, Kevin Brady answered some of FAQs on Trump’s Payroll Tax Deferral Executive Order. Next, the US Chamber of Commerce put out a memo about the IRS’ guidance posted on September 1^st that produced more unanswered questions and how it may affect you and your business. Additionally, the NAPEO Association created a guide to the same memorandum detailing the issues specific to our industry. Lastly, as an extension of the presidential memorandum for housing concerns, the CDC has generated a moratorium on eviction if a tenant fills out this declaration form.

Furthermore, SHRM provided further direction on COVID-19 liability shields for employers struggling to operate under evolving guidelines during the pandemic. Remember, every state has a different policy, with distinctive rules and regulations for liability per location. If you stick to the CDC guidelines for how to deal with the Coronavirus protocols, you should be fine.

On August 31, 2020, the California Legislature passed Assembly Bill 2257. This is likely a result of the Uber lawsuit and will affect many industries, especially the entertainment industry. If signed by Governor Newsom, AB 2257 would exempt several categories of workers from the stringent requirements of the ABC Test under Assembly Bill 5 (AB 5), including but not limited to the following:

1. Certain workers in the music industry
2. Musicians performing for single live performances
3. Individual performance artists presenting original, creative work
4. Insurance industry workers who provide underwriting, inspections and other services
5. Consulting service providers.

The Department of Labor (DOL) is already officially reworking the guidelines for what makes a 1099 Contractor vs an employee with access to unemployment and other benefits. Hopefully, they will come to an agreement before these new laws from CA go into effect.

As always, please don’t hesitate to reach out if you have any questions about any of these readings.

Have a fantastic Labor Day Weekend!