Alternative Fuel Tax Credit retroactively extended for Propane Forklifts
Tax credits are available for propane forklifts for 2018 – 2020 The Propane Education & Research Council is encouraging propane forklift users to take advantage of the Alternative Fuel Tax Credit, which was recently passed by the U.S. Congress as part of the Further Consolidated Appropriations Act, 2020. Businesses operating propane forklifts who apply for the tax credit will be able to claim a credit for every gasoline gallon equivalent of propane purchased, or about 37 cents per gallon. The bill not only extends the credits through Dec. 31, 2020, but facility managers can also apply for credits retroactively for any fuel purchases made in 2018 and 2019. While April is typically tax month, companies now have until July 15 to file. “Propane-powered forklifts are already a leader in the material handling market because of the key advantages they offer over other fuels, so this opportunity only strengthens their value proposition,” said Jeremy Wishart, director of off-road business development at PERC. “Businesses across the country are leveraging propane’s versatility and clean, powerful performance to keep crews more productive — and now they can cash in on extra cost savings, too.” For facilities and distribution operations that require on-site refueling, the new law also retroactively extends the Alternative Fuel Vehicle Refueling Property Credit, which allows facility managers to claim up to 30 percent or $30,000 of the cost of installing qualified alternative fuel equipment refueling property — including propane refueling equipment. Businesses operating propane forklifts can learn more about how to apply for these credits through this fact sheet from the National Propane Gas Association. PERC encourages all forklift operators to consult their own tax advisers first regarding any claims for credits or refunds.
What will change Post-Coronavirus
It’s an unprecedented time in our history. The COVID-19 epidemic has turned virtually all business on its head. With virtually the entire world on partial or complete lockdown, this is the opportunity to examine what the business world will look like once we get through this pandemic. While many might believe that our world will dramatically change, it’s more likely that many people and organizations will want to “get back to normal” as fast as possible. However, there likely will be 4 key changes that will impact almost every organization. 1) Getting Smarter, Faster, Nimbler – The epidemic has shown that organizations that have been operating through traditional methodologies were caught flat-footed. Their inability for employees to work remotely, access information quickly and easily, lack of digitization and lack of employee empowerment have caused congestion at the least and complete shutdown at the worst. Coming out of COVID, organizations need to focus on examining and implementing approaches to simplify their processes, improving their ability to pivot, and empowering employees with the skills and resources to quickly solve problems. 2) Becoming Decentralized – Those organizations that were dependent on physical offices and locations to operate are being hit the hardest. Companies that are tied to old ERP systems that require an individual tethered to an in-office computer, or have one team controlling key parts of their process are feeling the impacts of a “single point of failure”. Organizations moving forward should immediately examine and identify ways to decentralize their processes and provide more power to individual employees to take customer engagements from beginning to end. 3) Improving Communication Skills – In a time of a major emergency, effective and efficient communication is essential. Organizations without clear and simple communication strategies are quickly discovering the hidden complexity of getting things done that was tolerated during the times of the status quo. Companies will need to fully review and audit their communication processes, along with determining the skillsets employees need to become more effective and efficient. 4) Examining Relevance – Do you matter? More specifically, do you matter to your customers in a time of unprecedented challenges? Organizations have a great opportunity to identify how they can help simplify and support their customers in this time of need. How can you identify ways to serve customers in a new and relevant way? One financial institution has gone beyond the trend of waiving overdraft fees and skip payment options and has developed a new service for every single one of their customers to create a $400 emergency savings account by a simple round-up auto-deposit. There’s no way to predict exactly how the business world will change following the Coronavirus pandemic, but there’s no question that things will change. However, this is the opportunity to take a hard look at how your organization operates, and where improvements can be made. Don’t wait for the next pandemic, as you may not survive the next wave. About the Author: Andrea Olson is a strategist, speaker, author, and customer-centricity expert. As the CEO at Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers and No Disruptions: The future for mid-market manufacturing. She is a 4-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been featured in news sources such as Chief Executive Magazine, Customer Experience Magazine, Industry Week, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer at the University of Iowa’s Tippie College of Business, a TEDx presenter and TEDx speaker coach. She is also a mentor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.thecustomermission.com.
COVID-19 Update from the American Logistics Aid Network
COVID-19 has facilitated the need to reimagine every aspect of our supply chain. Kathy Fulton and Mark Richards from the American Logistics Aid Network comment on the current situation and offer best practices and resources for moving forward. Click here to view the video.
U.S. Manufacturing Technology Orders increased in February 2020: Covid-19 Pandemic upends U.S. Economy and Manufacturing Industry
U.S. manufacturing technology orders increased 3 percent in February from the previous month to $277.9 million, according to the latest U.S. Manufacturing Technology Orders report published by AMT – The Association For Manufacturing Technology. New orders were 16.5 percent lower than in February 2019. Total orders through February 2020 are $547 million, 26.2 percent lower than YTD 2019 orders. “Before the pandemic hit, we had predicted lower manufacturing technology orders in the first half of the year with a pickup in the second half,” said Douglas K. Woods, president of AMT. “Clearly the downturn will be much more severe than could have been anticipated. While we still expect a rebound later this year, this recovery is likely to take an extended period of time to get to pre-crisis levels as the global economy, the U.S. economy, and the manufacturing industry slowly regain their momentum.” “While all industries are being affected, and some more than others, with cancellations of orders or postponement of expected orders, due to long lead times of some industrial equipment and urgent retooling to meet crisis-related production some pockets of investment are continuing. As we progress out of this crisis the manufacturing technology industry will be critical in scaling up the products and equipment our economy needs going forward such as air filtration equipment, laboratory and medical equipment, automation, pharmaceuticals, PPE, defense and other products. These opportunities will create momentum in the manufacturing technology industry well into 2021 and beyond supplying both domestic and global needs.” “The pandemic has clearly exposed the risks of excessive reliance on non-diversified, global supply chains to produce the necessary products and equipment in a time of crisis—be it an outbreak of a disease, an economic crisis, or a large military conflict. Centralized supply chains in foreign countries have proved to be detrimental to the ability of the U.S. to effectively react to a global crisis. Revitalizing America’s manufacturing sector would provide the U.S. with “self-manufacturing-sufficient” supply chains to support our industrial base in a crisis.”
How marketing leaders can both manage the coronavirus crisis and plan for the future
In the economic recovery from the pandemic, marketing—the link between businesses and their customers—will play a pivotal role. Planning starts now The COVID-19 crisis is unprecedented. The speed with which it has spread and its effects on families and daily life have led to a deep sense of fear, anxiety, and confusion. The human toll has devastated many of us and continues to drive home the reality that the coronavirus is a tragedy that is upending lives around the world. Even as US companies try to get their arms around the human costs as the pandemic continues to spread, they are also struggling to understand the impact on their business and how to react. Marketers—many working remotely from home—are faced with an entirely new situation: How should we be talking to our customers? Where should we be spending marketing dollars and where shouldn’t we? How should we be working with our teams and our colleagues across the business? How are we going to stay in business? And all this on top of how can we support our family, friends, communities, and planet? There is much uncertainty about the future. That said, we are likely in the midst of a generation-defining event that will influence how consumers behave for years to come. This means that marketers—as advocates for the consumer in every business—have a critical role to play as companies shape their response. Marketers will need to be fast and pragmatic to manage the crisis, while also being strategic on how to weather the downturn. Some facts and hypotheses are emerging that we share in this article. We hope these can help marketing leaders determine what actions they can take and how they can start to prepare for a post-COVID-19 world. Consumer sentiment and behavior Consumer behavior and sentiment have fundamentally changed in a number of key ways: Adjusting to new realities. US consumer optimism in the economy is declining as the effects of the coronavirus pandemic escalate (Exhibit 1). As of April 1, however, some 75 percent of US consumers believe their finances will be impacted for more than two months by the pandemic, up from 69 percent two weeks before the week, and uncertainty about the economy is preventing them from spending, according to McKinsey’s consumer-sentiment survey. (Exhibit 1) Exhibit 1 Spend patterns are unsurprising—but stark, nonetheless. A short-term boost in spending has been unevenly distributed, with consumers rushing to get must-have-now items while virtually shutting off other categories. Grocery, household products, and home entertainment were the first categories to see consistent increases, while travel, out-of-home entertainment, food service, and even discretionary categories like apparel have cratered (Exhibit 2). Exhibit 2 Shift to online shopping. Online is becoming the channel of choice as consumers spend more time at home and there’s reason to believe that this behavior shift will endure at some level. Looking at China, which has endured the effects of COVID-19 for longer than the US, consumers have indicated that the rapid changes in shopping habits are likely to stick (eg, more than 55 percent of Chinese consumers are likely to permanently buy more groceries online). Despite the significant shift to digital channels, however, the surge in buying online has not come close to offsetting losses offline, where about 80 percent of shopping traditionally happened. New reality for media usage and advertising. With more consumers at home, media consumption is changing, too. We are seeing growth in at-home media consumption, with live news and movies or shows topping the list. But the increase in time spent on media is not necessarily driving higher ROI for digital media spend. Google and Facebook are seeing changes, some negative, to their business already. What marketing leaders can do Marketing as we know it has changed. With retail shut down, sports at a standstill, and upfronts effectively cancelled, many of the channels companies have traditionally relied on are out of commission. Clearly, shopping channels will reopen eventually. But marketers need to adjust to a very different environment in the short term. This will require putting in place dedicated crisis response teams who are focused on the most important revenue-related activities. Operating in agile ways—and remotely—they will need to focus on short-term business health priorities (eg, cash flow, “run-the-business” revenue targets) but at the same time put the business in a position to address longer-term realities and opportunities. Given the high degree of uncertainty for the foreseeable future, the success of these teams will depend on how effectively they can test, learn, and adapt. A company’s playbook will vary depending on its demand situation and sector. Consumer categories with high-demand products, such as cleaning materials or shelf- stable food, will need to act differently than big-ticket-item categories, where demand has dampened for now. Broadly, we believe marketing leaders will need to act across three stages: 1. Resolve and resilience: manage the now The playbook for reacting to the current crisis is anchored on four actions: Support employees, customers, suppliers. Given the scale of the humanitarian crisis we are facing, the number-one priority should be immediately changing ways of working to focus on employee wellness and health. Empathize and understand customers. Marketers need to get an immediate handle on customer motivations and behavior. While many companies believe they have a well-developed sense of their customers, circumstances are now so radically different that marketers should be questioning everything they previously believed to be true. It is crucial that this insight be understood not just by marketers but by the CEO, C-suite, board, and entire company. It will help them immediately recalibrate their messaging to address their customers’ new reality and engage with them more thoughtfully and authentically. Build up cash reserves. While the full implications of the crisis are not yet clear, marketers should act decisively to manage costs and increase productivity. Marketers need to do an immediate revaluation of media performance to identify inefficiencies and optimize programs by channel, improve efficiency in how work is done, eliminate agency overlap, and get a clear picture of where the money is
Global surveys of consumer sentiment during the coronavirus crisis
As governments and organizations continue to work toward containing COVID-19 and stem the growing humanitarian toll it is exacting, the economic effects are also beginning to be felt. We are tracking consumer sentiment to gauge how people’s expectations, incomes, spending, and behaviors change throughout the crisis across multiple countries over time.
Business Tax relief provided by the Cares Act
As businesses seek to navigate the current reality, it is imperative they understand the relief opportunities provided by the federal government. With the signing of the CARES Act, there are business tax provisions that should be considered by business owners and executives. Here we review the tax relief provisions for businesses. Payroll Tax Credit The CARES Act provides for a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 pandemic. Eligible employers include those where their business has been fully or partially suspended as a result of the government’s social distancing order as it relates to commerce, travel, or group meetings, as well as employers who have experienced more than a 50% reduction in quarterly receipts (measured on a year-over-year basis). Nonprofits can be considered eligible for these credits under this criterion as well. The tax credit is for wages paid to certain employees. Those employees include all employee wages for employers with an average number of full-time employees under 100 in 2019. For those employers with more than 100 employees in 2019, the credit is available for only those wages paid to employees who are furloughed or who much work reduced hours as a result of business closure or reduced gross receipts. This credit is for wages paid after March 12, 2020, and before January 1, 2021. Wages are capped at the first $10,000 paid by the employer to an eligible employee. If a business is receiving Small Business Interruption Loans under the COVID-19 relief package, they cannot also take this payroll tax credit. Employer Payroll Taxes Delayed Under the CARES Act, employers can defer paying the employer portion of payroll taxes (social security taxes) through the end of 2020. The employer instead will need to pay 50% of the payroll taxes deferred by December 31, 2021 and 50% of the taxes by December 31, 2022. This deferral will also be available for those subject to self-employment tax. Similar to the payroll tax credit, if an employer has had indebtedness forgiven under the Small Business Act this deferral of payroll taxes is not permitted for those employers. Net Operating Losses (NOLs) Deduction Up to 100% The CARES Act temporarily removes the taxable income limitation to allow an NOL carryforward to fully offset income. Taxpayers can take an NOL deduction equal to 100% taxable income, rather than the 80% limitation under present law for tax years beginning before 2021. For tax years beginning after 2021, taxpayers can take both a 100% deduction of NOLs arising in tax years prior to 2018, and a deduction limited to 80% of modified taxable income for NOLs arising in tax years after 2017. Modified NOL Carrybacks The CARES Act provides that NOLs arising in a tax year beginning after December 31, 2017, and before January 1, 2021, can be carried back to each of the five tax years preceding the tax year of such loss. The provision also temporarily disregards NOL carrybacks for purposes of IRC 965 transition tax and contains special rules for Real Estate Investment Trusts (REITS) and insurance companies. Modified Loss Limitation The CARES Act temporarily modifies the loss limitation for noncorporate taxpayers so they can deduct excess business losses arising in 2018, 2019, and 2020. The Act also includes technical corrections to the 2017 Tax Cuts and Jobs Act (TCJA) clarifying that excess business losses do not include any deductions related to performing services as an employee. It also clarifies that, because capital losses cannot offset ordinary income under the NOL rules, capital loss deductions are not taken into account in computing the limitation, and that the amount of capital gain taken into account in calculating the limitation cannot exceed the lesser of capital gain net income from a trade or business or capital gain net income. Acceleration of the Corporate Minimum Tax Credit (MTC) Under the CARE Act, corporations for which the alternative minimum tax (AMT) was repealed for tax years after 2017 may now claim outstanding MTCs (subject to limits) for tax years before 2021, at which time any remaining MTC may be claimed as fully refundable. So, the MTC is refundable for any tax year beginning in 2018 or 2019, in an amount equal to 50% (100% for tax years beginning in 2019) of the excess MTC for the tax year, over the amount of the credit allowable for the year against regular tax liability. This means, corporations can claim 100% of AMT credits in 2019. The Act also provides for an election to take the entire refundable credit amount in 2018. The claim for this credit or refund when the corporation chooses to take the entire refundable credit amount in 2018 will be treated as a tentative carryback refund claim. An application, as provided by the IRS, must be filed before December 31, 2020, for the tentative refund for any amount. The application must be verified for a tentative carryback adjustment and must set forth the amount of the refundable credit for the tax year, the amount of the refundable credit claimed for any previously filed return for the tax year, and the amount of the refund claimed. Once the application is filed the IRS has 90 days to review the application; determine the overpayment amount; and apply, credit or refund the overpayment. Business Interest Deduction Increased Temporarily The TCJA limited the amount of business interest allowed as a deduction to 30% of adjustable taxable income. The CARES Act temporarily increases that limit to 50% for tax years beginning in 2019 and 2020. Under the CARES Act, the following rules apply to partnerships for this business interest deduction increase: This increase in limitation only applies for 2020, not 2019 50% of the excess business interest will be treated as paid or accrued by the partner in the partner’s first tax year beginning in 2020 and isn’t subject to any limits in 2020 50% of the excess business interest will be subject to the limitations relating to the
“How do I let good people go at a time like this?” Six ways to deliver the bad news with love
Right now, with anxiety at an all-time high, how you do the dreaded deed really matters. Deb Boelkes says heartfelt leaders approach layoffs the same way they lead—with compassion, candor, and reassurance about the future No leader wants to let an employee go. Unfortunately, in these harsh and uncertain economic times, more and more of us find ourselves having to deliver some very bad news. Without question, it’s one of the most painful parts of being a leader. But Deb Boelkes says you can let people go without abandoning them emotionally—and as the pandemic sets in for who knows how long, it’s a skill every leader needs to learn. “Actually, how you lay someone off should be an extension of how you lead,” says Boelkes, author of Heartfelt Leadership: How to Capture the Top Spot and Keep on Soaring (Business World Rising, 2020, ISBN: 978-1-734-07613-4, $19.95). “Great leaders do both with compassion, integrity, and candor. They lead with an open heart and the assurance that employees do have what it takes to excel—and they let people go the same way.” Boelkes says heartfelt leaders inspire employees, engage their emotions, and help them pinpoint and pursue their passions. In her new book, she explains what such leadership looks like in action. Full of real stories and lessons from top heartfelt executives, it teaches you to transform from a person people follow because they have to, to a person they want to follow. And it doesn’t shy away from talking about what it looks like to fire someone the heartfelt way. Boelkes offers the following tips: Above all, follow the Golden Rule If you must lay somebody off, the best approach to take is: Do unto others as you would have them do unto you. The Golden Rule is a guiding principle that leaders should live by every day, but never is it more important than when employees are at their most vulnerable. Imagine how you would want to be treated if you were to lose your job and move forward with that in mind. You would not want to hear bad news via email or a mass Zoom call, or be treated as if you didn’t matter to your supervisor and your company. Maybe you can’t be by their side, physically—but you can be emotionally In her book, Boelkes describes how she had to lay off her team when she worked for AT&T. “When my first team member came into my office, I motioned for him to sit on the sofa instead of in one of the chairs on the opposite side of my desk,” she recalls. “I immediately came out from behind my desk and sat right next to my team member, turning toward him. I was right there next to this employee as I laid out the details of what was going to happen.” Obviously, this physical closeness likely can’t happen now due to social distancing. But Boelkes says leaders can and must find a way to keep that spirit of human connection and caring—even if you must deliver the bad news via video chat. “Schedule a one-on-one meeting when you have a lot of time because you will want to offer plenty of space for the conversation,” she says. “If you keep your message authentic, from the heart, and honest, they are most likely to receive it well.” Spell out their unique strengths—and reassure them that they’ll be able to leverage those strengths again This is a time, in particular, when people need to be reminded of the gifts they bring to the table. Be specific as you recount the many contributions the person has made to the team and the organization. Share how much you honor, respect, and admire them and remind them that other organizations will recognize and value their skills and abilities as well. “Reassure the person that these terrible times won’t last forever,” says Boelkes. “A sense of hope may be the best gift you can give them right now.” Help them brainstorm their next step After you have broken the news, roll up your sleeves and make yourself an ally to your employee as they begin envisioning their future. Discuss with them what they would really love to be doing going forward. Brainstorm about the type of jobs they would love to have. Review the kind of companies in the local region or elsewhere that might have good opportunities for them to do the things they really want to do. To get the ball rolling, ask, “What is important to you in life, and what makes you excited about your career?” Listen closely to each response. Wholeheartedly commit to helping them find their next role Assure the employee that you will do everything in your power to help them land their dream job. Call around to any contacts you have and inquire about potential job opportunities for each member of your staff. Give referrals freely. Help them come up with stretch assignments that will give them more experience and prepare them for potential opportunities they are interested in pursuing. Later, when things open back up, coach them through the interview process Touch base with the team member through their interview process at other companies. Make yourself available to run mock interviews and check in often to see how they are doing. They will appreciate having a mentor through this challenging process. “Is it unorthodox to keep in touch with employees after you let them go?” says Boelkes. “Perhaps. But if you truly care about someone, you will want to. And who knows? You may be able to bring the person back at a later date.” As Boelkes shares in Heartfelt Leadership, when she had to lay off her team at AT&T, each employee went off to better, more exciting positions. A few started their own businesses, and she was even able to bring back others as contractors. The point? Just because you’re letting someone go doesn’t mean their life is over. “There’s no escaping the discomfort and pain caused
U.S. manufacturing employment and new orders index falls
The Institute for Supply Management’s manufacturing PMI for March was 49.1%, one percentage point lower than it was in February. But that number belies the bigger picture of an industry wracked by the coronavirus pandemic. New orders, production, employment, prices, exports, and imports all contracted, according to the Manufacturing ISM Report On Business. The index measuring employment in the sector contracted for the eighth month in a row, to 43.8% from 46.9%, and at a faster rate this month than before. 43.8% represents the employment index’s worst reading since May 2009. Only 3 of 18 industry sectors surveyed reported an increase in employment: printing and related support activities, food and beverage companies, and electronics. Supply chains snarled by coronavirus chaos continued to confound manufacturers. The ISM’s index on supplier deliveries, which records less-than 50 scores on this index as accelerating deliveries and scores above 50 as slowing, grew from 57.3% to 65%, extending the trend for a fifth month. New orders contracted 7.6 percentage points from 49.8% in February to 42.2% in March, an 11-year low compared to March 2009, when the index recorded 41.3%. A respondent from the Plastics and Rubber Products sector said that all of their North American manufacturing plants had ceased operations or dramatically scaled them back. Another executive, this one from a nonmetallic mineral products company, noted that a large part of their business was the hospitality industry. “We are seeing demand drop and an increase in cancellations,” ISM reported. The coronavirus impact has trampled demand for travel and leisure industries, including hotels and airlines. Not every sector felt the blow, however, as some manufacturers whose goods support people spending much more time at home found: “We are experiencing a record number of orders due to COVID-19,” said a surveyed executive of the food, beverage, and tobacco sector. In general, the dearth of new orders for factories sent aftershocks through other metrics. As no new orders came in, factories had little to do, and the ISM’s factory production index slid 2.6 points to 47.7% in March. One surveyed executive in the machinery sector said COVID-19 was to blame for a “30% reduction in productivity” in their factory. Factory backlogs shrank, and the ISM’s backlog index fell 4.4 points to 45.9%. Factories imported and exported fewer goods in March, and both the new export orders and import indexes fell. Exports fell 4.6 points to 46.6%, while imports fell a mere 0.5 points to 42.6%, representing a contraction that is very slowly speeding up.
Leading in Uncertain Times: 10 ways to help employees cope with the pandemic
Quint Studer says how leaders behave right now will be remembered long after this crisis has passed. Here are some things you can do to help employees stay calm, focused, and informed As the COVID-19 pandemic takes hold, we’re all being impacted in various ways, many of them pretty dramatic. Everyone is feeling more than a little fear and anxiety about the future. If you’re a business leader, says Quint Studer, lots of people are looking to you for guidance–and you have a responsibility to help those around you cope with the uncertainty. “As human beings and as citizens, we are in this boat together, and we’re all struggling with the same emotions,” says Studer, author of Wall Street Journal bestseller The Busy Leader’s Handbook: How to Lead People and Places That Thrive (Wiley, October 2019, ISBN: 978-1-119-57664-8, $28.00). “But we’re also leaders, and that means we can’t just think of ourselves and our immediate families. We have employees, coworkers, and customers to consider as well. They’re our family, too—and right now, more than ever, they need us to truly lead.” “As leaders, we actually can have a positive impact on the employees who count on us,” Studer adds. “This is both a human responsibility and a privilege.” So, what should leaders do? First and foremost, says Studer, we need to get focused and intentional about how we respond to this pandemic. What you do and how you behave over the next few weeks (or possibly months) will stay with your employees for a long time to come. He offers the following tips: Create a plan for your business. There’s no specific advice here, as different sectors (retail, manufacturing, travel & tourism, etc.) are being hit in different ways. So are different types of employees: Some can work from home; others can’t. Think through your plan and manage your response carefully. Give it some serious attention. Don’t make rash decisions—but also don’t leave things to chance. “Even if you risk a misstep, I find life usually rewards action,” says Studer. “You may have to modify your plan as events unfold and that’s okay.” Communicate often and well. Bring everyone together by video chat or phone and communicate the plan. Hold a daily meeting if necessary. When employees hear nothing, they expect the worst. They’d rather hear the truth, even if it’s bad news than live in uncertainty. Keep the lines of communication open and make it clear you are always available to talk. Read up on what’s going on. Make sure you have a good grasp on the virus, your customers, your industry, and the economy in general. You don’t have to be an authority, but you do need to know enough to help give perspective. “This could be a full-time job in itself,” notes Studer. “There is so much information out there that having a few trusted resources to turn to is key. I suggest taking advantage of membership in groups like the Chamber of Commerce and relevant trade associations. These institutions are great clearing houses of information, and can effectively and efficiently keep us connected.” Be honest about what you know, but don’t pile on. Embrace the “facts, not fear” mantra you’ve probably seen all over the media. Discourage others from awfulizing, advises Studer. There is too much speculating, myth-spreading, and general negativity swirling around without leaders adding to it. Be the voice of calm rationality. Encourage people to know the facts, but not overload on the news. Explain that constant exposure to bad news affects our psyche. It keeps us distracted and unable to concentrate. It feeds anxiety and fear. This is not good for job performance, but even worse, it feels bad. It keeps us from enjoying our life. Equip frontline supervisors with answers to FAQs from employees. This is likely where employees will feel most comfortable talking. Relieve anxiety where you can, even if it’s not work-related. This pandemic has far-reaching implications. It doesn’t just impact people’s work-life; it impacts their health, personal finances, and family. As much as you can, know what each employee’s “what” is, meaning what they care about more than anything else. This will help you calm them in a way that truly resonates. Build up your emotional bank account. What you do to make people’s lives easier really counts right now. Some employees may have trouble with kids as schools shut down. Others may need to care for elderly parents who get sick or who just need extra help with shopping and chores because they’re staying at home. Be sensitive to individual needs and accommodate where you can, advises Studer. It’s a good time to build relationships. Think about what your company already does that could help those impacted by the virus… For example, some pharmacies are waiving home delivery fees for prescriptions for the elderly and others at high risk. Some cable companies are offering free access to Wi-Fi for 60 days to certain students who need to move to online learning, and one moving truck company is offering to store students’ belongings for free (as they rush to vacate dorms). Some restaurants are delivering meals to high-risk people. “Helping at a time when people really need it builds goodwill,” says Studer. “It also helps employees feel better…and it’s just the right thing to do.” …or find other ways your team can serve. If you don’t have a product or service needed by those who are struggling, you and your employees can help in other ways. You could deliver food or care packages to those who are quarantined. Or your team could help out nonprofits that are experiencing volunteer shortages because their usual volunteers (often seniors) are staying home. This may dramatically boost morale. We all feel better when we can give back. Finally, one of the best things a leader can do is to remind people that the coronavirus won’t last forever, says Studer. Things will get better. Helping people put this moment in time in perspective may help more than we realize. “Tough times make great leaders,” Studer adds. “People
The Construction Association reports sharp drop in Construction projects
After 42 States added jobs in February, Coronavirus is taking a swift and severe toll on the Industry, prompting Association officials to call for additional measures to help workers and firms recover Thirty-nine percent of contractors report that project owners have halted or canceled current construction projects amid deteriorating economic conditions, according to a survey released on March 27, 2020, by the Associated General Contractors of America. Association officials warned that these cancellations mean massive job losses are likely soon unless Congress passes targeted recovery measures to boost infrastructure funding, compensate firms for lost or delayed federally funded work and provide needed pension relief. The project cancellations are particularly severe in light of new data showing that 42 states added construction jobs through February. “The abrupt plunge in economic activity is taking a swift and severe toll on construction,” said Ken Simonson, the association’s chief economist, noting that only 18 percent of respondents have been ordered to halt work by elected officials. “The sudden drop in demand stands in sharp contrast to the strong employment levels this industry was experiencing just a few weeks ago.” Click here(link is external) for additional video comments from Mr. Simonson. In the association’s latest online survey, conducted between March 23 and 26, 45 percent of the 1,640 respondents reported experiencing project delays or disruptions. Shortages of material, parts, and equipment, including vital personal protective equipment for workers such as respirators, were reported by 23 percent of respondents. Eighteen percent reported shortages of craftworkers, while 16 percent said projects were delayed by shortages of government workers needed for inspections, permits and other actions. Thirteen percent said delay or disruption had occurred because a potentially infected person had visited a job site. The survey also found that 35 percent of firms said suppliers had notified them or their subcontractors that some deliveries would be delayed or canceled, the economist added. He noted that only 22 percent reported similar supply chain challenges last week. That survey was conducted between March 17-19. However, eight percent of firms did report they have added new work expanding health care and other facilities needed to respond to the growing health crisis. In contrast to the rapidly deteriorating current market conditions, the association also released new construction employment data showing that most states – 42 – added construction jobs between February 2019 and February 2020. Industry employment declined over the year in eight states and the District of Columbia. From January to February, 37 states and D.C. added construction jobs, while 11 states shed jobs and two states had no change. Association officials warned that while the coronavirus relief measure scheduled for a vote in the House today will provide some immediate help for construction workers and their employers, Congress must do more to protect high-paying construction jobs. They said new investments in infrastructure, relief from losses incurred on delayed or canceled federally funded projects and protections for multi-employer pensions will help the industry recover from the economic impacts of the pandemic. “The steps firms are taking to protect workers from the coronavirus, unfortunately, won’t be enough to save many of them from the economic damage the pandemic is creating,” said Stephen E.nutstrain Sandherr, the association’s chief executive officer. “Construction workers and employers need more than a lifeline, they need a recovery plan.” View the state employment data, rankings, and map. View AGC’s coronavirus resources and survey.
U.S. Dept. of Treasury, IRS and Dept. of Labor announce plan for paid leave for workers and tax credits
The U.S. Treasury Department, Internal Revenue Service and the U.S. Department of Labor announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act, signed by President Trump on March 18, 2020. The act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus. Key Takeaways Paid Sick Leave for Workers For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable. Complete Coverage Employers receive 100% reimbursement for paid leave pursuant to the act. Health insurance costs are also included in the credit. Employers face no payroll tax liability. Self-employed individuals receive an equivalent credit. Fast Funds Reimbursement will be quick and easy to obtain. An immediate dollar-for-dollar tax offset against payroll taxes will be provided Where a refund is owed, the IRS will send the refund as quickly as possible. Small Business Protection Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed or child care is unavailable in cases where the viability of the business is threatened. Easing Compliance Requirements subject to a 30-day non-enforcement period for good faith compliance efforts. To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released this week. Background The act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child-care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and Dec. 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. Paid Leave The act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee’s pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis. An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee’s pay. An employee who is unable to work due to a need to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, may in some instances receive up to an additional ten weeks of expanded paid family and medical leave at 2/3 the employee’s pay. Paid Sick Leave Credit For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee’s regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. For an employee who is caring for someone with Coronavirus, or is caring for a child because the child’s school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee’s regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. Child Care Leave Credit In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child-care facility is closed or whose child care provider is unavailable due to the Coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee’s regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child-care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. Prompt Payment for the Cost of Providing Leave When employers pay their employees, they are required to withhold from their employees’ paychecks federal income taxes and the employees’ share of Social Security and Medicare taxes. The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the
EEOC answers questions about the pandemic and antidiscrimination laws in recorded webinar
Agency provides important information for stakeholders The U.S. Equal Employment Opportunity Commission (EEOC) posted a webinar addressing questions arising under any of the Federal Equal Employment Opportunity Laws and the COVID-19 pandemic. The webinar answers questions submitted by the public about how to respond to the COVID-19 pandemic in light of the federal employment nondiscrimination laws the EEOC enforces – including the American’s with Disabilities Act, the Age Discrimination in Employment Act, Title VII, and GINA. The webinar supplements the COVID-19 publications already available on the EEOC’s website: “What You Should Know About the ADA, the Rehabilitation Act, and COVID-19” and “Pandemic Preparedness in the Workplace and the Americans with Disabilities Act“. EEOC Chair Janet Dhillon also issued a message about unlawful national origin and race discrimination against Asian Americans in the workplace during the pandemic. The agency will continue to monitor developments and provide assistance to the public as needed. The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.
Railroads applaud relief for Unemployed Rail Workers
Class I freight and short line railroads applaud Congress for ensuring in the latest COVID-19 aid legislative package that rail workers have access to critical unemployment and sickness benefits during this unprecedented public health emergency. Unlike the average American worker, railroaders do not receive unemployment benefits through state-administered programs but rather through the Railroad Retirement Board’s (RRB) Railroad Unemployment Insurance Program. As a united front, the Association of American Railroads (AAR) and the American Short Line Railroad Association (ASLRRA) joined with rail labor in calling on Congress to provide rail workers affected by the coronavirus with the same vital protections they extended to other impacted Americans in the first COVID-19 stimulus package. Of note, H.R. 748 includes the following railroad specific provisions: Waives the seven-day waiting period for filing a sickness or unemployment claim with the RRB and provides $50 million to cover the costs of providing these additional benefits. Increases unemployment benefits through an additional $1,200 bi-weekly benefit and provides $425 million to cover the costs of providing these additional benefits through July 31, 2020. Allows RRB to access approximately $130 million of remaining American Recovery and Reinvestment Act funds to provide extended benefits through December 31, 2020. Supplies $5 million to RRB for additional administrative costs. “This aid package will offer a vital relief to hard-working rail employees whose jobs are impacted during these challenging times,” said AAR President and CEO Ian Jefferies. “We thank Congress for ensuring railroaders have access to this lifeline. The industry is committed to working in partnership with its employees as we navigate the COVID-19 pandemic, and railroaders will continue to deliver what America needs.” “While short line railroads are working hard to avoid any layoffs or furloughs, this Railroad Unemployment Insurance improvement is an important safety net to provide,” said ASLRRA President Chuck Baker. “We were pleased to work with our friends in rail labor and at the AAR to make this request, and we join them in thanking Congress for its quick action in the face of this unprecedented crisis.”
Remote meetings are the new normal. Here are 16 ways to make them a LOT more effective
The coronavirus pandemic has forced many employees to work from home, and now businesses are functioning through a surge of virtual meetings. Howard Tiersky, the author of Impactful Online Meetings, shares tips to make yours more effective With COVID-19 here for the unforeseeable future, businesses are rethinking everything. More and more employees are working from home, which means people who once met face to face must now meet virtually. The good news is, platforms like Zoom and Google Hangouts make it easy to hold these meetings. The bad news, says Howard Tiersky, is that leading virtual meetings requires a skill set many people don’t have. “Remote meetings are inherently different from in-person meetings, and this means they are often poorly run,” says Howard Tiersky, coauthor along with Heidi Wisbach of Impactful Online Meetings: How to Run Polished Virtual Working Sessions That Are Engaging and Effective—Zoom|Webex|GoToMeeting|Skype|Google Hangouts (Spiral Press, 2020, ISBN: 978-1-734-41533-9 (eBook), $.99). “That’s a serious concern even in normal times, but in times like these, it can be disastrous. It’s crucial that leaders get meetings right, right away.” Another bit of good news (which we need plenty of right now) is that well-run online meetings can be extremely beneficial, says Tiersky. According to the Harvard Business Review, online meetings can be even more effective than in-person meetings when done right. In his book, Tiersky offers a wealth of tips for making online meetings as impactful as possible. He also refers readers to his website, impactfulonlinemeetings.com, so they can be notified of book updates and also access other helpful supplemental resources. A few tips for making your meetings more impactful: Don’t underestimate the socialization factor There are various reasons to hold meetings: sharing information, brainstorming solutions, coordinating activities, and so forth. But one big reason is socialization. Remotely located teams need to build social bonds in order to work better together. Right now you may need to hold more meetings than in “normal” times because so many people are feeling isolated and disconnected. “The more you can build a sense of community right now, the better for everyone’s emotional health and work performance,” says Tiersky. “A well-run meeting can actually be a bright spot in an otherwise dreary and depressing day.” Establish the mood upfront. Meeting attendees will likely be coming from a wide range of emotional “spaces” when they arrive (many of them negative). Take control of their mindset and mood by facilitating casual conversation before the official start time. Don’t let it be awkwardly silent or dominated by a side conversation between just a few of the many people on the line. “In normal times, you’d start out by chatting about sports or vacation plans, but of course these aren’t normal times,” says Tiersky. “You can’t acknowledge the pandemic—that wouldn’t be authentic—but keep topics around it as positive as possible. Don’t let it overrun everything. You might ask if anyone has a funny story to share, or if they’ve seen a creative way their community is pulling together or giving back.” Know your purpose ahead of time and keep it front and center during the meeting Before you hold a meeting, try to identify your “why” and stay on message. You might say, “Today’s goal is to finalize the form we will use for the performance management process. This is critical because it’s a tool that will help facilitate thousands of conversations between employees and their supervisors, and many of those conversations will be turning points in those employees’ careers. When we get this right, we can really impact employee morale and productivity and reduce attrition.” Make introductions Introductions are necessary when people at a meeting don’t all know each other. Instruct individuals to share their name, department, role, and give a brief fun fact. Slack reported that a study found that workers who shared a funny or embarrassing story about themselves with their team produced 26 percent more ideas in brainstorming sessions than workers who didn’t. “If participants already know each other pretty well, encourage team members to give 60 seconds or less verbal ‘tweet’ on what the headline in their life is right now,” suggests Tiersky. “This can be an interesting exercise, especially in extraordinary times.” Keep the cameras on Expect a 200 percent-plus improvement in the effectiveness of online meetings if everyone has their cameras on, turning an audio call into a video conference. This keeps people engaged because they know what they’re doing is visible to everyone else. These days, most of your participants will have sufficient bandwidth, and nearly all computers have cameras, so any barriers are largely matters of habit. Be strategic about the sequencing of activities and announcements The first item on your meeting agenda should be a restatement of the purpose of the meeting. After that, strategize on the sequence of your activities. For example: If there are any “elephant in the room” topics, deal with those early or they will be a distraction. If you have some sort of fun or exciting announcement, you may want to hold it for the end, letting the participants know that it is coming but keeping the outcome a surprise to create suspense. If an agenda item may be intense or create some heated discussion, put it in the middle—get people warmed up and feeling productive first, then hit them with the challenging topic. Find creative ways to keep people engaged For example: Polls. Many online meeting platforms have the ability to issue multiple-choice polls and then show a graph of participant responses. The same can be done with chat questions. Presenters. Make everyone a presenter—even if you simply ask them to read a slide to the group. Breakouts. A breakout workshop allows more participation because people break into smaller groups to do work. Several of the major online meeting platforms including Zoom and Google Hangouts now offer breakouts. Try to give everyone a task It’s possible for one person to present content, facilitate questions, ensure the meeting stays on time, and take notes, but why? Usually, there are others who can take
MHEDA creates comprehensive webpage with COVID-19 resources
This webpage is designed to help material handling companies and their employees The Material Handling Equipment Distributors Association (MHEDA) created a comprehensive webpage (www.mheda.org/covid19) to help material handling companies understand the evolving business, government and health changes due to the world pandemic caused by COVID-19. The MHEDA COVID-19 webpage page includes (but not limited to) the following resources and website links: Assistance in determining “essential” business classification; Summary of state “stay at home” orders; Guidance on managing the workplace during this crisis; Member news updates on the status of operations Calendar of webinars on a variety of topics to help manage your business during this crisis. Critical information is grouped into ten distinct categories to help material handling professionals find what they are looking for: 1. General COVID-19 Information and Updates 2. Workplace Guidance 3. Emergency/Financial Assistance 4. Leadership 5. Remote Workers/Cybersecurity 6. Cleaning & Disinfecting 7. Healthcare 8. Travel 9. Events 10. Sales & Marketing in Uncertain Times MHEDA is working very closely with other organizations including but not limited to Industrial Truck Association (ITA); Associated Equipment Distributors (AED); National Association of Wholesalers-Distributors (NAW); American Logistics Aid Network (ALAN); MHI; Association Education Alliance (AEA) and others to gather and share resources as they become available. “During these difficult times, it is more important than ever before to connect and rely on one another to conquer our personal and professional challenges,” said MHEDA CEO Liz Richards. MHEDA is the Material Handling Equipment Distributors Association and is the premier trade association dedicated to serving all segments of the material handling business community.
HANNOVER MESSE 2020 cancels rescheduled date
HANNOVER MESSE 2020 cannot take place this year due to the increasingly critical situation surrounding the Covid-19 pandemic. The Hannover region has issued a decree that prohibits the staging of the world’s leading tradeshow for industrial technology. From now until the next HANNOVER MESSE in April 2021, a digital information and networking offer will provide exhibitors and visitors with the opportunity for economic policy orientation and technological exchange. Hannover. The world of industry will not be able to meet in Hannover this year. Comprehensive travel restrictions, bans on group gatherings and a prohibition decree in the Hannover region make it impossible to stage HANNOVER MESSE. At the same time, the corona crisis is affecting the economy, and the manufacturing industry – HANNOVER MESSE’s core clientele – is already struggling with the serious consequences of the pandemic. Demand and sales in the German industry are declining, resulting in supply bottlenecks, production stops and reduced working hours for employees. “Given the dynamic development around Covid-19 and the extensive restrictions on public and economic life, HANNOVER MESSE cannot take place this year,” says Dr. Jochen Köckler, Chairman of the Board of Management, Deutsche Messe AG. “Our exhibitors, partners and our entire team did everything they could to make it happen, but today we have to accept that in 2020 it will not be possible to host the world’s most important industrial event.” It is the first time in HANNOVER MESSE’s 73-year history that the event will not take place. However, the organizers will not let the show completely vanish. “The need for orientation and exchange is particularly important in times of crisis,” says Köckler. “That is why we are currently working intensely on a digital information and networking platform for HANNOVER MESSE that we will open to our customers shortly.” Various web-based formats will enable HANNOVER MESSE exhibitors and visitors to exchange information about upcoming economic policy challenges and technological solutions. Live streams will transport interactive expert interviews, panel discussions and best-case presentations all over the world. The online exhibitor and product search are also being enhanced, for example with a function that enables visitors and exhibitors to contact each other directly. “We firmly believe that nothing can replace direct, person-to-person contact and we are already looking forward to the time after Corona,” says Köckler. “But especially in times of crisis, we must be flexible and act pragmatically. As organizers of the world’s most important industrial trade fair, we want to offer orientation and sustain economic life during the crisis. We are doing that with our new digital offering.” Thilo Brodtmann, executive director of Germany’s Mechanical Engineering Industry Association (VDMA), said, “The cancellation of HANNOVER MESSE 2020 is an unfortunate decision, but it is the only correct one. The mechanical engineering industry must now concentrate on minimizing the consequences of the pandemic in its own operations so that it can start up again. In April 2021, the engineers will be back in Hannover in full force.” Wolfgang Weber, Chairman of the ZVEI Management Board: “The fact that Hannover Messe 2020 cannot be hosted is a bitter loss, but it is the right decision. For the electrical industry, the fair is the showcase to the world, which unfortunately remains closed this year. So our companies will use the time until 2021 to manage the considerable consequences of Corona. Next year, they will then present themselves with the latest products and solutions for Industry 4.0 and the energy system of the future.” If you purchased a ticket the full price will be refunded. Be watching for an official cancellation notice from HANNOVER MESSE. You do not need to take any action yourself. HANNOVER MESSE 2021 will be held from April 12 – 16, 2021.
Pandemic preparedness in the workplace: Employer responsibilities and rights under the ADA
CDC Advice: Employee Health Protections Starting in January 2020, an outbreak of coronavirus (COVID-19) started in China and began to spread worldwide. As a result, several agencies of the U.S. government have advised employers on how to respond to the threat. The U.S. Centers for Disease Control (CDC) offers this advice to employers for keeping employees healthy and preventing the spread of the virus: Actively encourage sick employees to stay home Employees who have symptoms of acute respiratory illness (typically fever, cough and shortness of breath) should stay at home and away from work until they are free of fever and other symptoms for at least 24 hours. Ensure your sick-leave policies are flexible enough to make employees feel they can stay home without risking their jobs. Instruct supervisors not to retaliate against employees who take sick leave. Do not require a health care provider’s note for employees who are sick with acute respiratory illness; doctors’ offices may be too overwhelmed to provide notes. Your policy should explicitly permit employees to stay home to care for sick family members. Segregate sick employees. If employees appear to have acute respiratory illness symptoms when they arrive for work or become sick during the day, send them home immediately. If an employee is confirmed to have COVID-19, inform co-workers of their possible exposure, but maintain confidentiality as required by the ADA. Emphasize good hygiene Tell employees to regularly wash their hands with soap and water for at least 20 seconds or clean their hands with an alcohol-based hand sanitizer that contains at least 60% alcohol. Provide soap and water, alcohol-based wipes, tissues and no-touch wastebaskets. Remind employees to cover their noses and mouths with a tissue when coughing or sneezing (or an elbow if no tissue is available). They should dispose of used tissues immediately. The CDC offers posters describing good hygiene practices that you can display in your workplace at www.cdc.gov/coronavirus/2019-ncov/communication/. Perform routine cleaning. Regularly clean all frequently touched surfaces in the workplace, such as workstations, countertops and doorknobs. Use the cleaning agents that are usually used in these areas and follow the directions on the label. At this time, the CDC does not recommend additional disinfection beyond routine cleaning. Provide disposable wipes so employees can wipe down commonly used surfaces (for example, doorknobs, keyboards, remote controls, desks) before each use. Advise employees to take precautions before traveling Tell them to check the CDC’s Traveler’s Health Notices for the latest country-by-country guidance and recommendations. Advise employees to check themselves for symptoms of acute respiratory illness before starting travel and notify their supervisor and stay home if they are sick. If outside the United States, sick employees should follow your policy for obtaining medical care or contact a health care provider or overseas medical assistance company to help them find an appropriate health care provider in that country. A U.S. consular officer can help locate health care services, but cannot evacuate or provide care to private U.S. citizens. Online resource: Find links to more CDC resources for employers at www.cdc.gov/coronavirus/2019-ncov/specific-groups/guidance-business-response.html. EEOC Advice: Coronavirus and the Americans with Disabilities Act (ADA) The ADA, which protects applicants and employees from disability discrimination, is relevant to pandemic preparation in at least three major ways. First, the ADA regulates employers’ disability-related inquiries and medical examinations for all applicants and employees, including those who do not have ADA disabilities. Second, the ADA prohibits covered employers from excluding individuals with disabilities from the workplace for health or safety reasons unless they pose a “direct threat” (i.e. a significant risk of substantial harm even with reasonable accommodation). Third, the ADA requires reasonable accommodations for individuals with disabilities (absent undue hardship) during a pandemic. This section summarizes these ADA provisions. The subsequent sections answer frequently asked questions about how they apply during an influenza pandemic. The answers are based on existing EEOC guidance regarding disability-related inquiries and medical examinations, direct threat, and reasonable accommodation. A. DISABILITY-RELATED INQUIRIES AND MEDICAL EXAMINATIONS The ADA prohibits an employer from making disability-related inquiries and requiring medical examinations of employees, except under limited circumstances, as set forth below. 1. Definitions: Disability-Related Inquiries and Medical Examinations An inquiry is “disability-related” if it is likely to elicit information about a disability. For example, asking an individual if his immune system is compromised is a disability-related inquiry because a weak or compromised immune system can be closely associated with conditions such as cancer or HIV/AIDS. By contrast, an inquiry is not disability-related if it is not likely to elicit information about a disability. For example, asking an individual about symptoms of a cold or the seasonal flu is not likely to elicit information about a disability. A “medical examination” is a procedure or test that seeks information about an individual’s physical or mental impairments or health. Whether a procedure is a medical examination under the ADA is determined by considering factors such as whether the test involves the use of medical equipment; whether it is invasive; whether it is designed to reveal the existence of physical or mental impairment; and whether it is given or interpreted by a medical professional. 2. ADA Standards for Disability-Related Inquiries and Medical Examinations The ADA regulates disability-related inquiries and medical examinations in the following ways: Before a conditional offer of employment: The ADA prohibits employers from making disability-related inquiries and conducting medical examinations of applicants before a conditional offer of employment is made. After a conditional offer of employment, but before an individual begins working: The ADA permits employers to make disability-related inquiries and conduct medical examinations if all entering employees in the same job category are subject to the same inquiries and examinations. During employment: The ADA prohibits employee disability-related inquiries or medical examinations unless they are job-related and consistent with business necessity. Generally, a disability-related inquiry or medical examination of an employee is job-related and consistent with business necessity when an employer has a reasonable belief, based on objective evidence, that : An employee’s ability to perform essential job functions
Beyond coronavirus: The path to the next normal
The coronavirus is not only a health crisis of immense proportion—it’s also an imminent restructuring of the global economic order. Here’s how leaders can begin navigating to what’s next For some organizations, near-term survival is the only agenda item. Others are peering through the fog of uncertainty, thinking about how to position themselves once the crisis has passed and things return to normal. The question is, ‘What will normal look like?’ While no one can say how long the crisis will last, what we find on the other side will not look like the normal of recent years.” These words were written 11 years ago, amid the last global financial crisis, by one of our former managing partners, Ian Davis. They ring true today but if anything, understate the reality the world is currently facing. It is increasingly clear our era will be defined by a fundamental schism: the period before COVID-19 and the new normal that will emerge in the post-viral era: the “next normal.” In this unprecedented new reality, we will witness a dramatic restructuring of the economic and social order in which business and society have traditionally operated. And in the near future, we will see the beginning of discussion and debate about what the next normal could entail and how sharply its contours will diverge from those that previously shaped our lives. Here, we attempt to answer the question being posed by leaders across the public, private, and social sectors: What will it take to navigate this crisis, now that our traditional metrics and assumptions have been rendered irrelevant? More simply put, it’s our turn to answer a question that many of us once asked of our grandparents: What did you do during the war? Our answer is a call to act across five stages, leading from the crisis of today to the next normal that will emerge after the battle against coronavirus has been won: Resolve, Resilience, Return, Reimagination, and Reform. The duration of each stage will vary based on geographic and industry context, and institutions may find themselves operating in more than one stage simultaneously. Today, a group of colleagues published “Safeguarding our lives and our livelihoods: The imperative of our time,” which emphasizes the urgency of solving now for the virus and the economy and thereby precedes our focus here on reimagining the future post-pandemic. Collectively, these five stages represent the imperative of our time: the battle against COVID-19 is one that leaders today must win if we are to find an economically and socially viable path to the next normal. Resolve In almost all countries, crisis-response efforts are in full motion. A large array of public-health interventions has been deployed. Healthcare systems are— explicitly—on a war footing to increase their capacity of beds, supplies, and trained workers. Efforts are underway to alleviate shortages of much-needed medical supplies. Business-continuity and employee-safety plans have been escalated, with remote work established as the default operating mode. Many are dealing with acute slowdowns in their operations, while some seek to accelerate to meet demand in critical areas spanning food, household supplies, and paper goods. Educational institutions are moving online to provide ongoing learning opportunities as physical classrooms shut down. This is the stage on which leaders are currently focused. Please see “Coronavirus: Leading through the crisis” for more. And yet, a toxic combination of inaction and paralysis remains, stymying choices that must be made: lockdown or not; isolation or quarantine; shut down the factory now or wait for an order from above. That is why we have called this first stage Resolve: the need to determine the scale, pace, and depth of action required at the state and business levels. As one CEO told us: “I know what to do. I just need to decide whether those who need to actively share my resolve to do so.” Resilience The pandemic has metastasized into a burgeoning crisis for the economy and financial system. The acute pullback in economic activity, necessary to protect public health, is simultaneously jeopardizing the economic well-being of citizens and institutions. The rapid succession of liquidity and solvency challenges hitting multiple industries is proving resistant to the efforts of central banks and governments to keep the financial system functioning. A health crisis is turning into a financial crisis as uncertainty about the size, duration, and shape of the decline in GDP and employment undermines what remains of business confidence. A McKinsey Global Institute analysis, based on multiple sources, indicates that the shock to our livelihoods from the economic impact of virus-suppression efforts could be the biggest in nearly a century. In Europe and the United States, this is likely to lead to a decline in economic activity in a single quarter that proves far greater than the loss of income experienced during the Great Depression. In the face of these challenges, resilience is a vital necessity. Near-term issues of cash management for liquidity and solvency are clearly paramount. But soon afterward, businesses will need to act on broader resilience plans as the shock begins to upturn established industry structures, resetting competitive positions forever. Much of the population will experience uncertainty and personal financial stress. Public-, private-, and social-sector leaders will need to make difficult “through cycle” decisions that balance economic and social sustainability, given that social cohesion is already under severe pressure from populism and other challenges that existed pre-coronavirus. Return Returning businesses to operational health after a severe shutdown is extremely challenging, as China is finding even as it slowly returns to work. Most industries will need to reactivate their entire supply chain, even as the differential scale and timing of the impact of coronavirus mean that global supply chains face disruption in multiple geographies. The weakest point in the chain will determine the success or otherwise of a return to rehiring, training, and attaining previous levels of workforce productivity. Leaders must, therefore, reassess their entire business system and plan for contingent actions in order to return their business to effective production
NAW clarifies Essential Business/Workers
As we previously reported, the Cybersecurity & Infrastructure Security Agency (CISA) within the Department of Homeland Security (DHS) issued guidelines on the identification of essential critical infrastructure business/workers during the COVID-19 response. The National Association of Wholesaler-Distributors (NAW) has been in contact with the White House COVID-19 Task Force as well as CISA Senior Staff and have been advised that the agency (CISA) will be issuing updated guidance in the near future. It is our understanding that this updated guidance will further clarify many job categories that CISA deems essential business/workers. CISA has asked NAW to supply any specific examples of NAW member companies that are deemed essential and have had difficulty delivering their goods into areas that are currently locked down or otherwise have restricted access. If your employees have experienced any situations in which they have been stopped or turned away due to a state or local ordinance, please let Blake Adami from NAW staff know immediately by emailing badami@naw.org. Please also include your phone number. NAW is providing to its members a template letter for businesses to provide to your drivers and employees that they can use to get to work and conduct work as employees of the critical infrastructure. It is important to note that these critical truck drivers and workers should have a hard copy of this document with them at all times when working. Please be aware that this letter is self-certifying and not an official federal document. You should review any document that you provide to your employees with your own counsel. Click here to see the letter. Second COVID-19 emergency stimulus proposal The Senate continues negotiations on a second stimulus package, as we reported in our last update. NAW and our association colleagues have been working throughout these negotiations to ensure that the final product includes the most robust and broad-based provisions possible to help businesses through this crisis. On Friday, Senate Majority Leader Mitch McConnell (R-KY) released a package of additional economic stimulus proposals to respond to the crisis. The legislation, Coronavirus Aid, Relief, and Economic Security Act or the CARES Act, would provide additional financial assistance to individuals and families through benefit programs and direct payments; but unlike the previous legislation, this package also includes significant programs to help employers through the next few months. As of late Saturday night, an agreement had been reached on the overall structure and many of the component parts of this package, and the actual legislation on which the Senators will vote was being drafted. However, there were still some outstanding issues on which compromise had not been reached; negotiations on those issues resumed early this morning. It was announced this morning (Sunday, March 22) that Senator McConnell is meeting in his office at 11:00 with Treasury Secretary Mnuchin, Senate Democrat Leader Chuck Schumer (D-NY), House Speaker Nancy Pelosi (D- CA) and House Republican Leader Kevin McCarthy (R-CA). Originally estimated to “cost” about $1 trillion, bi-partisan negotiations with the White House throughout Friday evening and Saturday raised the cost of the bill to a reported $2 trillion. Of note in those negotiations: Early Saturday morning we learned that there was an effort to remove the business tax provisions from the bill. Among those tax provisions were a deferral of tax payments and temporary Net Operating Loss carry back. An intense and focused response from all of us in the DC trade association community seems to have stopped that effort. The small business loan program proposals in the bill were originally limited to employers with 500 or fewer employees. There was a significant push to expand access to that loan program by raising the employee cap above 500, which would obviously benefit many NAW members and/or their customers. We do not yet know the outcome of those discussions. On Friday Senator McConnell brought up and filed cloture on what is referred to as a “shell vehicle” – a piece of unrelated legislation the content of which will be deleted and replaced with the current stimulus proposal. That cloture vote is the necessary beginning of the actual legislative process, and in order for the legislation to move forward, 60 Senators have to vote for the motion. If an agreement is reached on the entire package prior to 3:00, it is likely that well more than 60 Senators will vote to invoke cloture, and Senator McConnell’s stated objective of having the Senate approve the entire package on Monday will be achievable. UPDATE: Tensions flare on Senate floor as coronavirus bill derailed for the second time by Dem objections