On March 10, the U.S. House of Representatives passed the American Rescue Plan Act of 2021 (H.R. 1319) by a vote of 220-211 (along party lines) which already passed out of the U.S. Senate by a vote of 50-49. H.R. 1319 provides additional relief to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals and businesses. It provides $1.9 trillion to further support the mitigation of COVID-19’s devastating impact. President Biden signed the bill into law yesterday. This is a comprehensive bill and is 242 pages in length.

The bill includes funding for:

  • agriculture and nutrition programs, including the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program);
  • schools and institutions of higher education;
  • childcare and programs for older Americans and their families;
  • COVID-19 vaccinations, testing, treatment and prevention;
  • mental health and substance-use disorder services;
  • emergency rental assistance, homeowner assistance and other housing programs;
  • payments to state, local, tribal and territorial governments for economic relief;
  • multiemployer pension plans;
  • small business assistance, including specific programs for restaurants and live venues;
  • programs for health care workers, transportation workers, federal employees, veterans and other targeted populations;
  • international and humanitarian responses;
  • tribal government services;
  • scientific research and development;
  • state, territorial and tribal capital projects that enable work, education and health monitoring in response to COVID-19; and
  • health care providers in rural areas.

The bill also includes provisions to:

  • extend unemployment benefits and related services;
  • make up to $10,200 of 2020 unemployment compensation tax free;
  • make student loan forgiveness tax free through 2025;
  • provide a maximum recovery rebate of $1,400 per eligible individual;
  • expand and otherwise modify certain tax credits, including the child tax credit and the earned income tax credit;
  • provide premium assistance for certain health insurance coverage; and
  • require coverage, without cost-sharing, of COVID-19 vaccines and treatment under Medicaid and the Children’s Health Insurance Program (CHIP).

A Fox Business article reveals there are also $6 billion in “surprise business tax hikes” that were sneaked into the bill. These involve “limiting deductions for publicly traded companies that pay their top employees more than $1 million for tax years beginning after 2026. Another extends a cap on how much certain unincorporated business owners can deduct against their non-business income to reduce their tax liability, and the third clamps down on how multinational corporations do their taxes.”

Worker’s Comp Provision Pulled

Recently, the Indiana Chamber signed onto a letter in opposition regarding the worker’s compensation presumption for COVID-19 in the Longshore Act, which the House had inserted into its version of the American Rescue Plan Act. (The Longshore Act is a federal worker’s compensation law that applies to maritime employees who work on or over navigable waters in or adjacent to the United States.)

A diagnosis of COVID-19, without evidence of employment causation, should not create a presumption that an individual became ill or was injured on the job.

Fortunately, due to the collective efforts of organizations throughout the country, an objection was filed in the Senate under the Byrd Rule (which permits senators to block provisions of reconciliation bills that are “extraneous” to implementing budget changes) and the Longshore provision was removed and is not in the bill just signed into law. The Chamber and our federal coalition will continue to monitor this issue for the potential that a similar amendment may be inserted in other legislation.

For further information on what is included in the American Rescue Plan Act, we recommend these summaries: https://www.congress.gov/bill/117th-congress/house-bill/1319/text, https://www.cnn.com/2021/03/10/success/rescue-plan-small-businesses-feseries/index.html, https://www.washingtonpost.com/business/2021/03/10/what-is-in-the-stimulus/ and https://www.thepowerofa.org/wp-content/uploads/2021/03/ASAE-Overview-American-Rescue-Plan-Act-of-2021.pdf.


Protecting the Right to Organize Act of 2021 Passed House, Would Repeal Right-to-Work Laws

On Tuesday, the U.S. House of Representatives passed the Protecting the Right to Organize Act of 2021 (H.R. 842) by a vote of 225-206 along party lines. This bill expands various labor protections related to employees’ rights to organize and collectively bargain in the workplace.

The Chamber has reached out to the Indiana congressional delegation and expressed staunch opposition to this legislation. We believe that it will negatively impact workers in many ways, including, but not limited to: threatening private ballots during union organizing votes; nullifying right-to-work laws; imposing liability on businesses for workplaces they don’t control and workers they don’t employ; and undermining the gig economy.

Among other things, it (1) revises the definitions of employee, supervisor and employer to broaden the scope of individuals covered by the Fair Labor Standards Act; (2) permits labor organizations to encourage participation of union members in strikes initiated by employees represented by a different labor organization (i.e., secondary strikes); and (3) prohibits employers from bringing claims against unions that conduct such secondary strikes.

The bill also allows collective bargaining agreements to require all employees represented by the bargaining unit to contribute fees to the labor organization for the cost of such representation, notwithstanding a state law to the contrary; and expands unfair labor practices to include prohibitions against replacement of, or discrimination against, workers who participate in strikes.

The legislation makes it an unfair labor practice to require or coerce employees to attend employer meetings designed to discourage union membership and prohibits employers from entering into agreements with employees under which employees waive the right to pursue or join a collective or class-action litigation.

Finally, the bill addresses the procedures for union representation elections, modifies the protections against unfair labor practices that result in serious economic harm and establishes penalties and permits injunctive relief against entities that fail to comply with National Labor Relations Board orders.

For further information and good summaries, see  https://www.congress.gov/bill/117th-congress/house-bill/842/text and https://www.npr.org/2021/03/09/975259434/house-democrats-pass-bill-that-would-protect-worker-organizing-efforts.

Resources: Greg Ellis at (317) 264-6881 or email: gellis@indianachamber.com; Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com