On June 1, 2020, Congressman Kevin Brady (R-TX), the Ranking Member on the House Committee on Ways and Means, announced introduction of the Reopening America by Supporting Workers and Businesses Act of 2020.
Background: As part of the CARES Act, Congress provided $600/week in supplemental unemployment benefits to provide much needed support and economic relief for workers who lost their jobs or have been unable to work due to the COVID-19 pandemic. Supplemental benefits were intended to support public health measures by allowing workers to stay home and businesses to close.
As states begin to reopen, the expansion of benefits has presented serious challenges for businesses trying to recall workers, especially employers in the Paycheck Protection Program. Concerns have been raised that the additional $600/week in benefits could mean some workers receive more on unemployment than their paycheck, creating a disincentive to work.
Proposal: This bill would provide a bonus to provide a bump to workers and help accelerate economic recovery. The bill includes:
- Allowing workers to be paid up to two weeks of the supplemental federal unemployment benefits after accepting a job, comparable to a $1,200 hiring bonus. The bonus would be available to claimants beginning a week after the date of enactment and ending July 31, 2020.
- Return to work reporting: Strengthen program integrity by ensuring employers can report job refusals and that states provide clear notice to unemployment claimants about return to work obligations and good cause exceptions.
- Relief for non-profits: The CARES Act provided partial relief for reimbursable employers, including non-profits. Non-profits provide critical supports to low-income families and many are facing challenges reopening. This clarifies that non-profits do not have to pay the full amount and wait for reimbursement. Instead, states can reduce the amount owed up-front.
This bill provides a tool to assist individuals in returning to work as the country emerges from the COVID-19 recession.
Attached is the bill language and the summary providing additional details.