Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for September 15:
- Tech companies giving employees freedom to work from anywhere for lower pay
- Ohio passes new law protecting from COVID-19 liability
- Secret Service tracking millions of dollars in fraudulent PPP loans
Tech companies cutting pay for workers who leave Silicon Valley
“It’s only a reduction on base, and base makes up half of my TC. So a net 6.5% decrease in my TC to move to a place where houses are 20% of the price and taxes alone make up ~5-6% difference? Sign me up.”
Tech companies are making waves as they allow employees to move — and work — from anywhere in exchange for taking a cut to their total compensation.
While some companies have had pay localization policies in place for awhile, others are enacting them as a way to support workers who want to leave crowded, expensive urban areas, particularly in Northern California, for areas with a lower cost of living.
For example, VMware announced that an employee who leaves the Bay Area to move to Denver will see an 18% reduction in pay, while moving to Los Angeles might only result in an 8% decrease.
Ohio passes law protecting from COVID liability
“This legislation helps provide the peace of mind they need to reopen as we work together to rebuild Ohio’s economy.”
Ohio governor Mike DeWine signed legislation into law this week that protects business, schools, and healthcare providers from being held liable for COVID-19 infections.
The law is intended to provide reassurance as the state continues to reopen and jumpstart its economy. Ohio announced its highest daily number of COVID-19 deaths since early May today.
Secret Service tracking fraudulent PPP loans
“Those folks don’t know they are a victim of fraud until we come out knocking on their door explaining what happened.”
Secret Service agents seized $20 million fraudulently obtained from the Paycheck Protection Program (PPP) in August and agents in Florida are continuing to investigate other illegally obtained money.
According to law enforcement agents, many people do not know that they’re received stolen money until special agents come knocking on their door. Instead, lured by advertisements for small business loans on social media, unwitting small business owners become “mules” that receive funds stolen from the Small Business Administration and who are forced to immediately hand over 20% of the value of the loan to their creditors.