March 17, 2020 Anti-Americanism Covid-19 Family Finance Health Pandemic Politics 0

This shutdown is going to do far more damage long term than an additional 15k deaths from this virus by itself.  This bill from the gov’t that mandates ALL businesses including the SMB’s that would get bankrupted by the requirements of paid time off even during a force majure situation like Covid-19.  If the bill passes unaltered through the us senate then ALL businesses have to give paid leave to every employee..from the first exceptions.  That will mean I will never hire an actual employee…never.

One more thing…WHY ARE WE NOT TESTING FOR FOLKS WITH THE VIRUS ANTIBODIES? These are the folks we want out and about..this can help the economy not going into a severe depression. Testing for the virus only fuels the panic. Why is this test not being developed? Simple…the gov’t and their large corporate buddies do not make any money directly off folks that have had the virus and are now immune. Those folks should be out and about…isolate the vulnerable..not the ones that are immune.

Here’s the post that talks about the SMB Bankrupty act of 2020 as Karl Denninger coins it:
The Small Business Bankruptcy Act Of 2020 (HR 6201)
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“(B) EMPLOYER THRESHOLD.—Section 101(4)(A)(i) shall be applied by substituting ‘1 or more employees’ for ‘50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year’.

EVERY employer is liable for emergency sick leave under the FMLA of 1993 (formerly only applied to employers of 50+ persons.)

And this applies to not only the employee but anyone who is a family member of same, so if one of your family members gets sick your employer is compelled to pay as if you were working so you can care for them. Note that this imposition has been around since 1993 for firms with 50 or more employees — this now extends down to the first employee.

In addition your job is protected even if the employer has fewer than 25 employees (which was not formerly true) unless “business conditions” make it impossible.

This will happen to millions of small businesses, as they will no longer exist — imposition of “must re-hire” rules on smaller firms is a literal “go out of business” event for most small companies as they will be unable to fill skilled, key positions when someone takes leave since if they do so now they have two people for one job.

In addition it appears that every employer is now liable for paid sick time accrual of no less than 56 hours of paid time per year. This will be massively regressive as these sorts of benefits wind up hammering lower-wage workers the hardest.

What’s even worse is that during a declared public health emergency (like now) the employer is required to provide 14 days of paid sick time per person, ratably for part time employees, without prior accrual.

The offset is that small businesses (under 50 employees) can apply for reimbursement of this additional benefit.

Larger firms? You’re stuck — right here, right now.

Oh, and then there’s this one:

(C) PUBLIC HEALTH EMERGENCIES.—No certification or other documentation may be required under this Act by an employer during any public health emergency.

In other words during a public health emergency an employer cannot require you to document that you need for this “extra benefit” from them is actually supported by medical necessity — for instance, your or a person you care for’s illness with said disease.

I will say this — at least they stripped the abortion provisions that were allegedly in the original bill, and if a small (under 50 employees) firm survives it can try to apply for reimbursement of the “emergency” sick leave costs.

I put “emergency” in quotes because by explicitly prohibiting documentation requirements the amount of fraud that will be riven through this program will be at least as bad of an epidemic as COVID itself.

Welcome to the Recession and mass-bankruptcy of small businesses in 2020.