A recent report in FORBES magazine discussed a situation that a number of business owners have found themselves in, and auto glass company owners are no exception.
The Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act provides an additional $600 per week in unemployment benefits to workers who have been let go or furloughed as a result of the COVID-19 crisis. Add to that state unemployment that can range from a high of $790 per week in Washington State to a low of $235 per week in Mississippi and many workers will receive $1,000 per week to stay home.
As auto glass companies work to reopen, they are hearing from workers who want to stay home instead. This is especially problematic for companies that received funds through the Paycheck Protection Program (PPP), which requires 75% of the funds be used on salaries and used in 8 weeks in order for the loan to be forgiven.
“We got the PPP money on a Thursday. On Friday, I called everyone and told them to come back on Monday as we were opening back up. Everyone told me they’d see me Monday,” said one shop owner in Pennsylvania who also did not want to be publicly identified. “Monday morning came and one employee just quit outright, two others told me, that if they took childcare into account, they could make more money staying home for a while so that was what they were going to do. So that Monday turned awful pretty quickly.”
Some states are beginning to address the issue. Ohio, for example, is asking employers to let them know when workers won’t return to work and other states are expected to follow suit. In the meantime, it remains a problem for some employers, which isn’t expected to abate until after the extra funding ends. Right now, it is scheduled to end July 25, 2020 if Congress doesn’t provide an extension.