President Signs Executive Order for COVID Relief, But it Isn’t Law Yet

Beth Dean 08.11.20
126 Pen On Paper

Please visit our COVID-19 resources page with more information for business owners and employees.

 

During the weekend, President Trump signed an executive order and three memoranda for COVID relief.

This executive order bypassed Congress, so debates are underway on its constitutionality and whether it is indeed law. Until we receive definitive word on its status, we cannot advise or take action on any of its contents.

Here is what the executive order and accompanying memoranda propose:

Payroll tax cut

If enacted, the memorandum will include a “payroll tax holiday,” giving employers the option to let employees defer certain federal tax deductions from employee paychecks from September 1 until the end of 2020 for those making fewer than $4,000 biweekly. The tax holiday would be a deferral and not an exemption, meaning people would still have to repay those taxes after the deferral period ends, unless there are exceptions.  

 

Unemployment benefits

The $600 per week unemployment benefits under the CARES Act expired on July 31. Under the memorandum, unemployment benefits would continue retroactively to August 1 at a rate of $400 per week, with $300 of those dollars coming from the Federal Emergency Management Administration (FEMA) fund and the other $100 from individual states.

 

Eviction notices

The CARES Act banned late fees and eviction filings until July 25 on properties backed by federal mortgage programs, like Fannie Mae, or those receiving federal funds like HUD. The executive order is low on detail about extending those filings. It leaves the decision to Health and Human Services and the Centers for Disease Control and Prevention.

 

Student loans

Deferrals for student loans obtained through the Department of Education currently expire on September 1. The executive order’s accompanying memorandum moves to extend the postponement to the end of the year, with repayments beginning again January 1, 2021.

 

Stimulus checks

Since payments such as stimulus checks must pass through congressional negotiations, there is no mention of a second round of stimulus checks to individual taxpayers in the executive order.

 

So, where are we now? 

Nothing is official yet. If the talks in Congress resume and both sides agree, then legislation could be introduced and voted on. If they agree on a deal in the coming weeks, and that deal results in the passage of a new bill, the executive action could be null and void. 

At this point, we are not taking any actions related to the executive order and accompanying memoranda due to the uncertainty around it. Nextep continues to monitor the situation closely. We will let you know as soon as there is a more concrete law.

Also on Nextep

Your Guide to DOL’s Latest Guidance on Telework, Lactation Breaks, and FMLA Eligibility for Remote Employees Are you an employer of employees who telework, or employees who needs breaks for lactation? Then you’ll want to read this update! The US Department of Labor (DOL) recently released Field Assistance Bulletin (FAB) No. 2023-1, which covers several […]
Read more
Find the Best Candidates You may be recruiting new employees to ensure full staffing for the months ahead. Here are 3 ways to find and recruit top talent for your company. 1. Use technology Start with the most straightforward recruiting solution: post an ad online. Today’s online job posting tools go beyond the average resume […]
Read more
Rest Up! For Illinois Workers, ODRISA is Now Law Beginning in 2023, The One Day Rest In Seven Act (ODRISA) allows Illinois employees the right to take one day off in seven, plus breaks during a long workday.  Here’s a breakdown of the basics: Employees must get a minimum of 24 hours of rest every […]
Read more
Starting in 2023, Illinois workers have expanded job-protected bereavement leave under the Family Bereavement Leave Act (FBLA). Let’s dig into the details. FBLA allows eligible employees to take up to 10 work days of unpaid leave following the death of a family member. Specifically, they are allowed time for any of the events covered by […]
Read more
How to Ask the Right Things, Plus 25 Sample Job Interview Questions When searching for the right employee to join your team, job interview questions are essential in narrowing down an employer’s candidate pool and allowing top candidates to showcase their innovation, ideas, and goals.  But sometimes, it’s even more important to consider how you […]
Read more
Asking about criminal history is risky business. Here’s what to do instead. You may be breaking the law if your job application includes a checkbox asking the candidate if they’ve ever been convicted of a crime. Banning this question during the application process, sometimes referred to as “ban the box,” gives people with criminal histories […]
Read more
Your medical leave could qualify for paid time off if you work in Colorado.  We’re familiar with the Family Medical Leave Act (FMLA), allowing qualified employees up to 12 weeks of unpaid, job-protected leave to care for themselves or a family member during certain medical or family events. But the FAMLI program takes this coverage […]
Read more
Asking about salary history may be banned in your state. “So, tell me about your salary history at your current job.” It’s a typical job interview question, often used by recruiters to help gauge whether the candidate would be satisfied with the salary offered at their company. Sometimes, though, the question can help them determine […]
Read more
If you don’t have transparent pay, you may be legally obliged to do it soon.   California is the latest of several states to mandate transparent pay in job postings.  When advertising a job vacancy, California businesses with 15 or more employees must now show a salary range that the employee may expect to earn […]
Read more
Regardless of the turnover rate, every company at some point has faced the struggle of employee recruitment. Selecting the right candidate for your workforce is tough, and there are many factors to consider.  The action items below can provide your company with tactics to minimize risk and help ensure you hire the right person to […]
Read more
The new year brings both new resolutions and state minimum wage and tax changes. We’ve compiled what employers need to know to stay compliant and prepare your 2023 budget! Minimum Wage Several states are increasing their minimum wage. As a reminder, when federal and state or local payroll laws differ, the employer must adhere to […]
Read more
How do you handle employee promotions? When promoting one of your star employees to a management or supervisory position, companies should take the time to train and help the manager adjust to their new role.  An employee’s relationship with their immediate supervisor is one of the top five factors in job satisfaction, so a new […]
Read more

Download Our App