October 22, 2020
Just because the legislature is not in session doesn’t mean that our advocacy team isn’t working for you. We’re here to help with your needs and are already preparing for the legislature’s return in January.
In this week’s update:
Act Quickly on Available Economic Recovery Grants
ACCD and the Department of Taxes will administer a new round of grants for businesses: Expanded Economic Recovery Grants. The Department of Taxes application is open now through the myVTax portal until midnight on October 30, 2020. ACCD will be opening their application in the next week and the window to submit applications will also be two weeks.
Visit the ACCD COVID-19 Recovery Resource Center for full details, eligibility requirements, how to apply, and FAQs for businesses. In addition, ACCD and the Department of Taxes will host an informational webinar about the program Friday, October 23rd at 10:00 a.m. (A recording of the Overview Webinar hosted on October 21st is available). What are the major differences between these grants and the last round? There’s now a total cap of $300,000 in total Vermont state grants per business and federal aid will be subtracted from the total available Vermont grant.
Legislative Breakfast Goes Virtual
LCC’s Legislative Breakfast sponsored by New England Federal Credit Union went virtual last week. We had a great line up, with remarks from Senator Patrick Leahy and Congressman Peter Welch, followed by a conversation with Emily Mandel from Moody’s Analytics to give perspective on the national economic outlook. Our Government Affairs Manager closed the morning with a quick rundown of what happened this past legislative session and what to expect when the legislature reconvenes in a few short months.
Watch it Here | Read Coverage by VTDigger Here
Take a moment to tell us what your business needs from the legislature in January.
Reminder: Minimum Wage Set to Increase
The Vermont Department of Labor announced that beginning January 1, 2021, the State’s minimum wage will increase $0.79, from $10.96 to $11.75 per hour. The calculation for this increase is in accordance with Act 86 of the 2019 Vermont General Assembly.
This adjustment also impacts the minimum wage of “tipped employees.” The Basic Tipped Wage Rate for service or tipped employees equals 50% of the full minimum wage or $5.88 per hour starting January 1, 2021. The minimum wage is set to increase to $12.55 per hour in 2022 as determined by the current state statute. After 2022, the minimum wage will resume increasing annually with inflation as calculated by the Department of Labor unless there is further legislative action.
For more information about the Vermont Department of Labor, visit www.labor.vermont.gov.
Act 86 also contained two reports due on or before January 15, 2021, regarding the potential effects of altering or eliminating the basic wage rate for tipped employees in Vermont, and of eliminating the subminimum wage for secondary school students during the school year. A separate report is supposed to study the overlapping legal requirements of Vermont’s wage and hour laws, the federal Fair Labor Standards Act, and other federal employment laws with respect to agricultural employees and employers will be examined.
SBA Simplified PPP for Many Vermont Loans
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars. Learn more here.
Act 179 Changes Use of Easements in Development
Changes late in the life of the bill S.237, now Act 179 made substantial changes to the use of restrictive covenants in land development that go into effect January 1, 2021. Originally, Title 27 language changes in the Senate version of the bill were more narrowly linked to housing in hopes of facilitating housing development such as accessory dwelling units (ADUs). In the House version of the bill, the language was amended to simplify changes to the title that was broader and banned restrictive covenants. In Vermont statute, covenants can be synonymous with easements, creating significant problems as easements have many positive uses.
LCC’s advocacy team is examining the issue and will work to narrow the scope of the restriction in the coming legislative session. If you are concerned with this issue and would like to engage with any remedy moving forward, please contact our advocacy team.
DOL and DHS Release Rules Increasing Wages and Add Restrictions to H-1B Visa Program
The U.S. Department of Labor issued an Interim Final Rule (IFR) amending regulations and increasing the prevailing wages for high-skilled workers with H-1B, H-1B1 or E-3 nonimmigrant visas. This rule is effective immediately. The H-1B nonimmigrant visa allows U.S. employers to temporarily employ foreign workers in specialty occupations; the H-1B1 and E-3 nonimmigrant visa classifications are similar but apply to specific countries. DOL is amending its regulations to incorporate changes to the computation of wage levels under the Department’s four-tiered wage structure to “better reflect the actual wages earned by U.S. workers similarly employed to foreign workers.” Read the rule and submit comments to DOL here.
The Department of Homeland Security (DHS) is amending certain DHS regulations governing the H-1B nonimmigrant visa program to strengthen the integrity of the program during the COVID-19 crisis and to ensure that the employment of the H-1B workers will not have an adverse impact on the wage and conditions of similarly employed U.S. workers. The rule would narrow the definition of “specialty occupation,” requiring the applicant to have a degree in the area they want to work in. The rule also limits business arrangements where the H-1B holder works for a third party, by limiting these visas to one-year duration. The agency further defines related terms such as “worksite,” “third-party worksite,” “United States employer,” and clarifies how the agency will determine an “employer-employee relationship” between petitioner and beneficiary. The interim final rule is effective on December 7, 2020, and comments are due to DHS on December 7, 2020. Comments on a related information collection under the Paperwork Reduction Act are due on November 9, 2020. Read the rule and submit comments to DHS here.
Concerned or need to learn more about anything in this newsletter? Email our team at [email protected].
We look forward to working with you.
Sincerely,
The Lake Champlain Chamber Advocacy Team
