US is experiencing extremely serious health, economic and social consequences of COVID-19.

The United States (US) Chairman of the Federal Reserve, Jerome Powell, warned on May 21st, that the US economy is experiencing a downturn “without modern precedent.” Indeed, like many economies around the world, the US is experiencing extremely serious health, economic and social consequences of COVID-19, including an official national unemployment rate of 14.7% as of May 8th.

In response, the US government has worked to mobilize financial and programmatic support in order to allow the highest number of workers and citizens to benefit from health care assistance and financial support in case of unemployment. Specifically, the US Congress (legislature) adopted two acts which President Trump signed into law – the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and the Families First Coronavirus Response Act (FFCRA) (Public Law 116-127).

The CARES Act provides over $2 trillion economic relief package and is composed of four parts:  assistance for workers and families, assistance for small businesses, preserving jobs for industries, and assistance for State and local Governments. In seeking to preserve jobs, the Government supports companies to continue paying employee wages, salaries and benefits. The CARES Act “provides displaced workers US $600 per week for four months on top of their state unemployment benefits, which vary in amount by state. The law also expands benefit eligibility to independent contractors, the self-employed, and those who have not worked the minimum number of hours”.

As the US Department of Labor explains, under FFCRA employers shall “provide eligible employees up to two weeks of paid sick leave at full pay, up to a specified cap, when the employee is unable to work” due to sickness related to Covid-19. A partial payment is foreseen when the employees shall take care of the health of a qualified family member or in support of their children while schools are closed.
The FFCRA covers private employers with fewer than 500 employees and certain public employers. However, “small employers with fewer than 50 employees may qualify for an exemption from the requirement to provide paid leave due to school, place of care, or child care provider closings or unavailability, if the leave payments would jeopardize the viability of their business as a going concern”. The coverage is provided through refundable tax credits.

USCIB has been very attentive to the situation and to the needs of its members. It created a dedicated webpage with updated news about policies, initiatives, and changes in various sectors, and sample responses from its company members.

USCIB President and CEO, Peter Robinson, referred to this unprecedented situation as follows: “we understand that the experience and disruptive impact of the pandemic will—and indeed should—bring with it transformational change, and we should embrace and work together to shape that change to create a more equitable and just society”. […] “We are already looking ahead to the need not only to restore, but to take this opportunity to improve and strengthen the policies and political and economic institutions that provide critical infrastructure for business in the global marketplace to deliver jobs, solutions and opportunities for shared prosperity”.

U.S. employer associations, like the businesses they serve, are currently experiencing financial challenges linked to COVID-19 as well. To date, however, chambers of commerce and other associations supporting small businesses are not currently eligible to receive financial assistance under the CARES Act (Paycheck Protection Programme). In a welcome development, on May 6th a bipartisan bill was introduced in the U.S. House of Representatives titled “The Local Chamber, Tourism, and 501(c)(6) Protection Act.” If enacted, the legislation would extend PPP eligibility to 501(c)(6) organizations with 300 or less employees, which would be a welcome development for USCIB and other U.S. businesses associations, given their important role in contributing to U.S. economic recovery.

To view a comprehensive list of the COVID-19 resources for U.S. employers and workers, please view the U.S. Department of Labor’s Coronavirus Resource website here.