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NCA’s Washington Weekly Update 3-8-21

Situational Awareness
The House and Senate are in session this week. The Senate will be considering nominations. The House will consider several bills reported out by the Small Business Committee as well as the Protecting the Right to Organize Act (PRO Act), which was reported out by the Education and Labor Committee.

Coronavirus Relief Bill Goes Back to the House
The United States Senate completed its work on the House-passed coronavirus relief bill, the American Recovery Act over the weekend. Several changes were made to the House-passed version, which will require the House to pass the bill again in order for it to be sent to President Biden for signature. There are several provisions within the $1.9 trillion bill that may benefit the club community. A brief summary of those provisions are listed below.

Paycheck Protection Program (PPP)
Expands eligibility to include 501(c)(7) entities, though there is uncertainty about whether clubs who restrict their membership for reasons other than capacity to be eligible for the program under long-standing Small Business Administration regulations. Opening up eligibility was an NCA priority.

Employee Retention Tax Credit (ERTC)
Further extends the ERTC from June 30, 2021 to December 31, 2021. Extending and enhancing the ERTC was an NCA priority.

Restaurant Grant Program
A new grant program is created for licensed restaurants and bars to offset losses due to COVID-19. Grants are calculated using quarterly revenues from 2019 as a baseline from which 2020 and 2021 revenues are subtracted. The difference in the two revenue lines establishes the potential amount of the grant with offsets for any PPP or ERTC funds received. Further guidelines are expected in the coming weeks. The program is capped at $25 billion.

Unemployment Benefits
Supplemental unemployment benefits were scheduled to run out on March 14, 2021. The bill extends the weekly supplemental benefit of $300 per week through September 6, 2021.

Aid to State and Local Governments
A total of $360 billion was allocated in aid to state, local and territorial governments. Providing aid to state and local governments was a priority of NCA.

Health Care Coverage and Paid Leave
100% of continued health insurance coverage will be covered through September 2021 for laid off workers.

Employers with fewer than 500 employees will be eligible for reimbursement of as much as $1,400 per week in paid leave costs

House Considers Union-backed PRO Act This Week
This week, the House of Representatives will consider H.R. 842, the “Protecting the Right to Organize Act of 2021 (PRO Act).” The wide-sweeping labor bill was passed by the House in 2019, but was not considered by the Senate. While it is expected to pass the House again, even with Democrats now controlling the Senate it is not expected to be brought to the floor for consideration in the chamber. NCA, along with more than 100 other organizations, has signed onto a letter opposing the PRO Act. Among its provisions, the legislation would allow a modified form of card-check for union organizers, eliminate state right to work laws and strip employers of certain protections during union organizing activity.

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.

Independent Contractor Rule Officially Delayed
The U.S. Department of Labor has officially delayed implementation of the Trump-era independent contractor regulation that was set to go into effect on March 8, 2021. The regulation effective date has been pushed out to May 7, 2021, pending reconsideration of the rule by the department. The rule emphasized economic dependence as the key benchmark for whether a worker is considered an employee or an independent contractor. The department is expected to reach a decision to either amend or rescind the rule prior to the effective date.

New Coronavirus Town Hall: One Year Later
On March 16 at 2pm ET, NCA will host a critical Coronavirus Town Hall that assembles the original panel of experts from our groundbreaking inaugural Town Hall to look back over the past year and identify what our industry still needs to do to succeed moving forward. I will be giving an update on the current status of the COVID-19 relief legislation and its affects on clubs.

This webinar is free for the entire club community. Register here.

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