Posted on 04/24/2020 4:45:01 AM PDT by gattaca
Small business owners say some employees don't want to return to payroll
Potentially thousands of workers who were laid off from small businesses due to the coronavirus pandemic are declining to return to work because the combined income they are receiving from federal stimulus benefits and New York's unemployment system is more than they made at their jobs.
The fallout also has hindered the ability of small business owners to meet the conditions attached to federal Payment Protection Plan loans, which may be forgiven if the money is used to maintain employee payrolls.
Business owners "have to spend that money on salaries, health care and rent or mortgage. So what’s happened is the employees ... are getting more money at home not working than they would be getting paid and returning to work, or paid and staying home," said Kevin Luibrand, an Albany attorney who learned about the situation from clients who are small business owners. "So there’s no incentive for employees to want to be returned to the payroll. As a result, the employers aren’t going to be able to spend down the PPP money."
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ALBANY — Potentially thousands of workers who were laid off from small businesses due to the coronavirus pandemic are declining to return to work because the combined income they are receiving from federal stimulus benefits and New York's unemployment system is more than they made at their jobs.
The fallout also has hindered the ability of small business owners to meet the conditions attached to federal Payment Protection Plan loans, which may be forgiven if the money is used to maintain employee payrolls.
Business owners "have to spend that money on salaries, health care and rent or mortgage. So what’s happened is the employees ... are getting more money at home not working than they would be getting paid and returning to work, or paid and staying home," said Kevin Luibrand, an Albany attorney who learned about the situation from clients who are small business owners. "So there’s no incentive for employees to want to be returned to the payroll. As a result, the employers aren’t going to be able to spend down the PPP money."
In those instances, instead of having the loans forgiven small business owners may have to pay them back — with interest.
The Times Union reported last week that roughly 2 percent of small businesses in New York have been approved for loans through the Small Business Administration's Paycheck Protection Program. The program was created by a recent federal stimulus bill and launched April 3, and has been overwhelmed by demand. Congress is negotiating more funding for it even as business owners have been reporting the difficulty of getting lower-paid employees to return to work or agree to be placed back on the payroll.
Look at it a different way, these employers are going to have to start paying a little bit more money to keep their employees. At the end of the day I think this is a good thing.
I told my wife that back when this all started.
Staying on unemployment is not optional, If your employer calls you back to work and you refuse you can lose your unemployment benefits.
Employees won’t come back to work? Reduces your Gov benefit?
Do what the politicians do, hire wife, brother-in-law, daughter, aunt.
They don’t have to physically come to work, they can be consultants, members of the board, etc. Just get it on paper.
Stipulate kick-backs.
My next door neighbor just started back to work this week. He told me he was making more on unemployment, but he felt the right thing to do would be to go back to work instead of to continue to take money from the government.
“Who didn’t see this coming?”
Yep, even I saw it. Now Congress needs to amend the program to cut off the rediculous $600 a week bonus for those workers whom refuse to be recalled back to work. Of course the Marxistocrats will never go along with it.
Yep, my friends 23 yr daughter and her boyfriend together are bringing home $1500 a week in unemployment plus they both got the $1200 stimulus. They are loving this shut down. Why go back to work?
Most will use it until their job goes back into full time employment. Problem is...most jobs are being closed down, the employers cannot reopen due to debt and they filed bankruptcy.
Too much attention went out for checks to the people and not so much for the employer, mine told me he just did not fall into the requirements so he got nothing, thus he cannot pay anyone...so he stays shut until he can get things reorganized.
No..the Federal assistance did NOT work!
Very addicting, like crack, for many people. Alas, understandably so.
My son won6t forget, He is a small business manager (30-40 people) and he had work for people to do while the business was closed. painting, cleaning, remodelling, light work with lots of breaks and a slow pace, etc, some said " No, Im not working I'll collect unemployment" or played the "I could catch the flu and die card" His take on this is, He wont forget who didn't want to work, and when this is over , Their work schedules won't be the same . Some won't be invited back.
Unemployment bennies don’t last forever. They’ll find that out soon enough and I hope these people find themselves without a job, taken by others who were willing to work.
My wife is a payrol clerk and she saw this coming too. once people sit on the couch eating and drinking all day for a few weeks instead of working , they wont want get back to work. The problem is too many stupid people can’t or wont see the wall they are going to hit at the end of the line. This is really gonna hurt stupid and lazy people. Its going to be a bear market for garage sales, cars, TV’s, rims, furniture. Video games and xboxs.
“Look at it a different way, these employers are going to have to start paying a little bit more money to keep their employees. At the end of the day I think this is a good thing.”
You obviously failed Economics 101.
“Staying on unemployment is not optional, If your employer calls you back to work and you refuse you can lose your unemployment benefits.”
Not to mention that when the enhanced benefits run out, the employer will have filled their old job. One might consider looking at the 30% unemployment number before kicking back on pseudo, temporary welfare checks.
“Why go back to work?”
Because when their employer tells them it’s time to return to work and they refuse.... they get reported to the unemployment agency for refusal to work.
Then their freeloading stops. I’m pretty sure that’s how it works.
No, there is a bigger problem that many of these very low paying jobs have too often gone to non-citizens, illegal workers. Companies need to be forced to hire Americans and pay them adequate, competitive salaries. If at the moment that is competing against unemployment benefits, so be it. This might not be a perfectly conservative stance but it is a very personal one. Pay a decent wage and you will get workers. We have an opportunity to do a bit of reset, I look forward to seeing this happen.
Yea, and after 4 months of double dipping, they won’t have a job to come back to.
>>>Potentially thousands of workers who were laid off from small businesses
We have 20 million unemployed in the last month and we are worried because extra unemployment benefits will convince thousands to sit on the sidelines. Sometimes you can’t let the perfect be the enemy of the good.
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