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Our general counsel, Jeff King, working with Lobbyit, has been responding to Member questions about the recent legislation passed in response to the Coronavirus crisis. We have compiled the most common questions and answers below. This page will continue to grow. Please check back often.

Question: With so much information swirling around, can you explain the different laws, orders, and rule that are in place?


There are two new federal laws enacted in the last two weeks.

With all the disruption of business as a result of the coronavirus, companies are vulnerable to fraud. Matters can simply slip through the cracks as a flooring retailer or contractor is dealing with urgent issues on cash flow, employees, state orders on what can and cannot be opened, and simply staying healthy. It is important, however, to ensure your business does not become a victim of fraud.

It is at times of crisis and uncertainty that true leadership reveals itself. In the midst of our current crisis related to the Coronavirus, we are all looking to Washington, DC, community leaders, pastors, employers, etc…for confidence and leadership.

There are many types of fraud that affect businesses. One of the biggest concerns is Automated Clearing House (“ACH”) fraud. ACH is a system that enables the exchange of funds between businesses and individuals through the use of checks, wire transfers, and direct deposits. Criminals need only two pieces of information to commit ACH fraud: your business checking account number and your bank routing number. This means that anyone who has a check from your business may have all the information needed to steal money from your account through an ACH transfer, either by phone or online.

A great deal of concern and confusion has arisen around Assembly Bill (“AB”) 5, California’s revised standard for determining whether a worker is an independent contractor or should be classified as an employee. The law which took effect on January 1, 2020, and adopts the ABC test for determining whether a worker is an independent contractor or an employee. While the ABC test strictest standard, it does not make all independent contractors employees of a flooring retailer or commercial contractor.

AB 5 Not All That New.

As we start 2020, we have an amazing opportunity to clearly see our future. Did you see what I did there - with the “20/20” and “clearly see”? You will likely hear a lot of that as we enter the new year. For many of us during our early years, 20/20 was a term used to define perfect vision. This play on words could get old fast, or it could serve as a catalyst for us to get started on a more fulfilling life.

Now is the time to address any desired change in your life. In just over a month, we will approach the day when more change is attempted than at any other time of the year - the time of New Years Resolutions. Research tells us that within three weeks, most changes that were attempted on January 1st will have already been aborted with people migrating back to the way they were before.

As a flooring retailer, you handle credit card transactions every day. You swipe or insert the card into the credit card reader or terminal and receive authorization from the card processor. In some sales, the customer may call after visiting your store to buy the flooring. The customer will give you credit card information for the purchase. You may also make online sales. In these transactions, you gather the required information, submit it to the credit card company, and again receive authorization.

This is my final segment on encounters/relationships that have impacted me. I hope you have enjoyed these and have been challenged by them.

Let me frame this blog by saying that I have been blessed to meet and interact with people from all walks of life—from John Quinn, a talented and personable tufting machine operator with whom I worked with in 1988 during my early days in the Shaw sales training program, to Warren Buffet, who I was privileged to interview several times in order to glean his wisdom and share it with the members of the Shaw Flooring Network. As a frequent traveler who has logged over two million miles on one airline, I am sure I have forgotten more of these encounters than I remember.