Concerns over President’s Jobs Proposal

Employers are concerned about President Obama’s American Jobs Act because it includes new taxes, a potentially harmful hiring regulation and another extension of federal unemployment benefits .

The president wants to increase taxes on wealthier Americans to pay for much of his $447 billion plan. But that would likely impact many small employers who pay their business taxes through the personal income tax.

Also of concern is a provision in the proposal named the “Fair Employment Opportunity Act,” which ironically could make it more difficult for employers to consider the unemployed in hiring decisions.

Federal law already prohibits employers from discriminating based on race, religion, sex, or national origin. The president’s plan would add “employment status” to that list, giving job-seekers the right to sue and recover damages for violations.

An unemployed person who simply applies for a job but does not win it could, under the president’s proposal, sue the hiring company for discrimination.

Other aspects

Also included in the president’s proposal are:

• Tax credits for hiring the long-term unemployed
•  Work-sharing programs
• Funds for “Bridge to Work” programs that allow job seekers to continue receiving unemployment checks while training with companies that may later hire them.
• Reemployment assistance
•  Wage insurance — using UI to encourage older, long-term unemployed Americans to return to work    
• Startup grants to help long-term unemployed workers start their own small businesses. 

For more information, contact Kia Murrell at 860.244.1931 or kia.murrell@cbia.com.