About Workplace Recovery Alliance
A National Strategy is Needed to Put Americans Back to Work
The Workplace Recovery Alliance includes U.S. businesses of all sizes and from every industry. Our mission is to ensure passage of the “Workplace Recovery Act," which is needed to help the U.S. recover from the current economic crisis.
The Workplace Recovery Act will:
- Compensate every business for lost revenues during the period of virus-related or government-ordered shutdowns through an expedited process that will ensure fast, efficient, and accountable distribution of federal funds.
- Put employees back on workplace payrolls, and restore business and consumer confidence,
- Restore demand for US goods and services to help our economy recover quickly.
Details About the Workplace Recovery Act
The "Workplace Recovery Act" is a non-partisan bill by U.S. Senator Steve Daines (MT) to provide immediate compensation to all U.S. businesses harmed by the Covid-19 virus and government-mandated shutdowns. It is intended to replace operating losses from March 1, 2020 for up to 12 months, and to restore business and consumer confidence that is needed to ensure a rapid economic recovery. The bill is supported by more than 80 national industry associations that represent more than half of all employees in America.
- Provides cash to cover losses from shutting down and fund re-starting.
- Requirements to qualify:
- Have a taxpayer ID number by March 1, 2020.
- Experience net cash operating losses from after March 1, 2020 (in excess of any cash losses from prior 12 months).
- Have revenues from the prior 12 months.
- Businesses receive grants as follows:
- Apply through a web portal.
- Initial grant period covers actual operating losses from March 1 and projected losses through succeeding month.
- Subsequent grants can be made based on actual and projected cumulative expenses in excess of revenues, but not more frequent than monthly.
- Grants are limited to net cash operating losses and may not exceed 90% of prior 12 months of revenues.
- Qualifying cash costs include payroll, rent, mortgage payments, and other expenses necessary for operations, but excludes non-cash expenses and cash losses from prior years.
- Covered expenses include wages at prior levels limited to $150,000 annual salary per employee, and exclude performance bonuses or incentives.
- Furloughed employees are allowed to keep their $600 federal supplement after returning to work.
- WRA improves on challenges under the CARES Act.
- Forgiven PPP loans or similar programs reduce potential claims under WRA.
- Objective criteria allows automated claim processing without giving preference to organizations based on bank relationships.
- Mandatory spending structure and 12-month term removes uncertainty about running out of funds.
- Simple structure allows automated claims, with ample protection from abuse.
- Claims can be matched with taxpayer ID numbers, and cap of 90% of prior 12 months revenues can be checked against IRS databases to limit fraud.
- Claims are paid based on representations, but audit powers are created to guard against abuse, allowing for speedy processing, which is essential to business confidence.
- Businesses are incentivized to terminate early by allowing them to choose any consecutive months within the 12 month period as their coverage period. They can terminate retroactively during “settle up,” and can retain positive cash flow after termination.