Situational Awareness
The House and Senate are both in session this week. After considering nominations for Department of Education and Department of Commerce, the Senate will move toward consideration of the House-passed coronavirus relief bill. The House will be considering legislation related to election and campaign finance law.
Coronavirus Relief Bill Clears House
By a vote of 219 – 212, the House of Representatives passed the latest round of coronavirus relief legislation. The bill now moves to the Senate for consideration later this week. The legislation has been scored by the Congressional Budget Office at $1.9 trillion. The wide-sweeping measure did not attract any Republican votes and two Democrats voted against passage. Among the provisions contained in the bill are the following:
- Individual payments of $1,400 per person and student under age 24 for those with incomes below $75,000 for an individual and $150,000 for couples filing jointly. The amount is phased out for those with incomes above $100,000 or $200,000 for a couple.
- Expands Paycheck Protection Program to include all 501(c) entities
- Extends Employee Retention Tax Credit through December 31, 2021
- Provides grant assistance to licensed restaurants
- Extends unemployment benefits including the $400 pandemic unemployment assistance payments through August 29, 2021
- Increases federal minimum wage to $15.00 an hour
- Tax credits for employers who offer paid leave
- Local and state government relief
- Increases funds for testing and vaccinations
- Enhances subsidies for health insurance under the Affordable Care Act
- Increases Medicaid funding to states expanding their programs
While the legislation contains an increase in the federal minimum wage, Senate rules for reconciliation bills will require it to be dropped from the bill. The House will then have to reconsider the bill once the Senate passes it, which is expected late this week or early next. Congressional Democrats and the Biden Administration have set a goal of March 14 for the bill to be signed into law.
PPP Expanded: Uncertain Impact for Clubs
The House-passed coronavirus relief package includes a long-sought provision that would expand the program to all 501(c) entities with some exceptions. Social and recreational clubs organized as a 501(c)(7) are captured within the language and appears to make them eligible for the program, yet regulations governing eligibility for programs under the Small Business Administration (SBA) raise questions about whether clubs will actually benefit from the program.
Regulations in effect prior to the pandemic restrict SBA program eligibility for clubs that restrict their membership for reasons other than capacity. While the bill language specifically includes 501(c)(7) organizations in the PPP, it is unclear whether the SBA will adhere to the intent of the legislative language or continue to apply the restriction as it relates to social and recreational clubs. NCA has already begun to reach out to the SBA to urge them to allow clubs to participate in the PPP as broadly intended by the legislation.
PRO Act On House Agenda
Legislation known as the “Protecting the Right to Organize Act (PRO)” is set to be considered by the House of Representatives next week according to Majority Leader Steny Hoyer (D – Md.). The bill is a comprehensive piece of legislation that would dramatically alter federal labor law as it relates to union organizing. The bill would allow organizing through card-check, establish binding arbitration, repeal right to work laws in the states and impose California’s process for determining independent contractor status nationwide. The House passed the PRO Act during the last session of Congress and its fate is unclear in the Senate. NCA has joined the U.S. Chamber of Commerce, the National Association of Manufacturers and other business organizations in opposition to the legislation.
Department of Labor Intends Revisit of Joint Employer Rule
Last week, the Department of Labor sent the White House Office of Information and Regulatory Affairs (OIRA) a regulatory action related to a previously adopted regulation establishing when two or more employers are considered joint employers under the Fair Labor Standards Act (FLSA). The joint employer rule promulgated under President Trump was largely invalidated by a federal court and the notice to OIRA is likely announcing the Department’s intention to suspend the Trump regulation pending revision at a future date.
Webinar: Social Clubs and the Employee Retention Tax Credit
Are you taking advantage of the Employee Retention Tax Credit? On March 4 at 2pm ET, Condon O’Meara McGinty & Donnelly tax experts will answer your questions about effectively using the Employee Retention Tax Credit (ERTC). Presenters will clarify questions about club qualification regarding gross receipts and interpretation of “operations fully or partially suspended,” among other FAQs related to the ERTC extension and expansion under the Disaster Relief Act. NCA members can participate for free by signing up here. Nonmember pricing is $99.
Early Bird Pricing Extended to 3/8 for 2021 National Club Conference
NCA has extended early bird pricing for the 17th National Club Conference to March 8! The industry’s most exciting conference will be held May 23-25 at Ocean Reef Club in Key Largo, Fla., and features premier social events and a star-studded lineup including Former White House Chief of Staff Mick Mulvaney and Syndicated Columnist and Political Pundit Cal Thomas. I will share a critical government relations update and explain how NCA is helping shape policy.
Register and learn more here.