A Washington State business owner faced backlash from her employees after she obtained a forgivable Paycheck Protection Program loan from the federal government that has allowed her to keep them fully paid through the coronavirus pandemic.
In an interview with CNBC this week, salon owner Jamie Black-Lewis of the Oasis Medspa & Salon in Woodinville and Amai Day Spa in Bothell said her employees were furious because they were already “making” more money being unemployed.
And the reason they were “making” more being unemployed was because of a Democrat-pushed provision that was added to the CARES Act.
The provision added “a flat $600 a week to the typical weekly benefits paid by one’s state,” CNBC reported. “Those traditional benefits, which vary widely between states, replaced about 40% of one’s prior wages.”
“The measure’s improved $600-a-week payments, which run through July, aim to boost that wage replacement rate to 100% for the average worker. But some, especially lower-wage workers, can come out ahead.”
And that’s exactly what happened in Black-Lewis’s case, just as congressional Republicans had repeatedly warned.
Jamie Black-Lewis, a #Washington State business owner of two spas with 35 employees got two forgivable #PPP loans. Her employees hate her for it. Because they would rather collect #unemployment. The unintended consequence of #CARES t.co/qyuYOHnihy and @GregIacurci
— Keith Gormezano – #Top 100 #QuickBooks #ProAdvisor (@drquickbooks) April 23, 2020