Current Legislative Action – World Floor Covering Association

Whether lobbying Congress with our partners at Jones Walker, or education on pressing industry legal issues from our general counsel, Kaytie Pickett, the WFCA is committed to championing the causes and issues that are important to you as a retailer. See below for the current issues impacting your business and how you can help to make your voice heard on the hill.

Watch the Grow Live Event, “What to Expect with the Trump Administration

How Retailers and Downstream Buyers Can Recover Their Share of IEEPA Tariff Refunds: A Jones Walker Special Report

If your business imports goods through third-party importers, wholesalers, or manufacturers, there is a significant financial question you need to be asking right now: When the importer of record receives a refund of the International Emergency Economic Powers Act (IEEPA) tariffs it paid to the US government, are you entitled to a portion of that refund?

Retailers, distributors, and other buyers positioned downstream of the importer of record may have a direct financial stake in these refunds. As IEEPA tariff refund claims move forward, the process raises important questions for businesses that never paid such tariffs directly but nonetheless bore the economic burden of them through higher purchase prices. Understanding how these refunds work — and the legal and contractual mechanisms available to claim a fair share — can be critical in recovering costs already absorbed within the supply chain.

Important caveat: The process by which the US government will refund IEEPA tariffs is still being finalized. Before a downstream buyer can pursue a claim against its importer, the importer must first actually receive the refund. Importers are actively pursuing those refunds now — and retailers should be paying close attention.

Background: The IEEPA Tariff Pass-Through ProblemOver the past year, importers of record paid substantial tariffs imposed under the IEEPA. Importers did not simply absorb these costs. In many cases, they passed them downstream. Purchase prices to retailers and other buyers increased, sometimes with explicit line-item tariff surcharges and sometimes embedded in general price increases. Either way, the economic burden of the tariff was transferred from the importer to the buyer.

Now, with the prospect of those tariffs being refunded, following the Supreme Court’s finding in Learning Resources, Inc. v. Trump, the importer of record stands to receive a cash refund for costs it already recovered from its customers. Without action by downstream buyers, that windfall stays with the importer.

How Importers Are Pursuing Their RefundsImporters that want to recover IEEPA tariffs they paid have several procedural avenues depending on the status of their customs entries:

Protest: For entries that have already been liquidated by customs, importers can file a protest under 19 U.S.C. § 1514, challenging the tariff classification or legal basis for the duty. The protest window is 180 days from liquidation.Post Summary Correction: For entries that are unliquidated, importers can request a Post Summary Correction (PSC) through the Automated Broker Interface to amend the entry and seek a lower duty assessment.Court of International Trade: Where administrative remedies are exhausted or unavailable, importers may file suit at the US Court of International Trade (CIT), which has exclusive jurisdiction over civil actions arising from federal laws governing import transactions.

Importers with significant tariff exposure are already pursuing these channels. The downstream buyer’s clock starts ticking the moment the importer receives its refund.

Review Your Supply Chain Relationships To Identify if You Have a Potential for Recovery Not every company downstream from its importer will have recoverable claims. Companies looking to recover will need to consider the strength of the following factors:

The Supplier Explicitly Cited Tariffs in Price Increase Notices: If your supplier sent written notices (via emails, letters, and updated price lists) that expressly attributed price increases to IEEPA tariffs, you have direct evidence that the tariff cost was passed through. This is the strongest fact pattern. The causal link between the government tariff and your higher purchase price is documented in the ordinary course of business.

Cost-Plus or Open-Book Pricing Arrangements: Some supply agreements, particularly in longer-term vendor relationships, are structured on a cost-plus basis where the importer’s documented costs, including duties, flow directly into the invoice price. In these arrangements, a tariff refund is almost automatically a pricing adjustment event. Through a refund, the cost basis has been retroactively reduced, and the contract pricing should follow.

Prices Moved in Lockstep With Tariff Imposition and Removal: Even without explicit notices, statistical correlation can tell a story. If purchase prices from a supplier increased substantially when IEEPA tariffs were imposed on the relevant product category and then decreased (or are expected to decrease) as tariffs are lifted, that pattern supports the inference that tariff costs were being passed through. This is circumstantial but could be helpful when combined with other evidence
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Itemized Tariff Surcharges on Invoices: Some importers listed tariff surcharges as a separate line item on invoices or purchase order confirmations. This documentation is highly favorable and traces the economic flow of the payment of the duties.

Industry or Market Evidence of Across-the-Board Pass-Through: In some product categories, tariff pass-through was so widespread and well-documented — through industry association reports, trade press coverage, or government pricing studies — that it could support the inference of pass-through even in individual supplier relationships that lack explicit documentation.

Review Your Agreement To Identify the Strength of Your Claim Here is what to look for in existing contracts to identify your potential to recover:

Duty drawback sharing clauses: These provisions expressly require the importer to share any customs duty refund, drawback, or remission with downstream buyers in proportion to the economic burden each party bore. If your agreement has one, your path to recovery is significantly clearer.
Price adjustment or true-up clauses: Some agreements include mechanisms for retroactive price adjustment if underlying cost components change. A tariff refund may qualify as a triggering event under these provisions.
Cost-plus pricing definitions: Review how “cost” is defined. If it includes duties as a line item, a duty refund directly reduces the cost basis and creates an obligation to adjust pricing.

Most Favored Pricing (MFP) clauses: If the agreement gives the buyer the benefit of the supplier’s most favorable pricing conditions and the supplier’s costs have now been retroactively reduced, an MFP clause may require a credit or refund.

Material Adverse Change or renegotiation triggers: Some agreements require good faith renegotiation upon significant changes in cost structure. A substantial tariff refund could qualify.

Provisions To Negotiate in Future AgreementsGoing forward, every supply agreement for imported goods should include explicit language regarding sharing of tariff refunds. At a minimum, negotiate for:An express obligation on the supplier to notify the buyer within a defined period (e.g., 30 days) of receiving any tariff refund, drawback, or remission on goods sold to the buyer.A formula for calculating the buyer’s proportionate share of the refund, tied to the documented tariff component in the purchase price. A crediting or remittance timeline, with interest provisions if payment is delayed.An audit right allowing the buyer to review the importer’s customs entries, liquidation records, and refund documentation.

Identify Which Legal Theories Match Your Supply Chain Even where a contract is silent on tariff refunds, retailers are not without legal options. Multiple legal theories may support recovery:

Breach of contract (express provisions): Where the supply agreement contains relevant provisions — such as duty drawback sharing, price adjustment, cost-plus mechanics, or good faith obligations — breach of contract is the most direct claim. It benefits from the clearest damages calculation and typically the most favorable standard of proof.

Unjust enrichment: Under this theory, the importer received a financial benefit — the tariff refund — that corresponds directly to a cost your company absorbed. Allowing the importer to retain the full refund without accounting to your company would unjustly enrich the importer at your company’s expense. Courts in most US jurisdictions recognize unjust enrichment as a viable claim even where there is a contract between the parties, though some states require the contract to be silent or ambiguous on the specific issue.

Breach of implied covenant of good faith and fair dealing: Every contract for the sale of goods in the United States is subject to UCC Article 2, which imposes an implied covenant of good faith and fair dealing. Where the parties’ course of dealing reflects transparent tariff pass-through and the importer knowingly retains a refund of costs the buyer paid, there is a compelling argument that retaining the refund without disclosure or credit violates this implied obligation.

What You Should Be Doing NowRetailers and other downstream buyers should take the following steps immediately:

Audit your supply agreements for any tariff-related pricing provisions, drawback sharing clauses, price adjustment mechanisms, or good faith obligations.

Preserve your documentation. Gather all supplier price increase notices, invoices with tariff surcharges, purchase order histories, and correspondence that references IEEPA tariffs as a reason for price changes.

Monitor your importers’ customs activity. Track whether your key suppliers are filing protests, requesting PSCs, or pursuing CIT litigation to recover IEEPA tariffs. This is a signal that refunds may be coming.

Send a written demand or preservation of rights to key suppliers now, asserting your position that you are entitled to a share of any IEEPA tariff refund attributable to goods purchased by you.

Consult counsel with combined customs law and commercial litigation experience. The intersection of customs regulations, UCC Article 2, and state common law is nuanced, and the evidentiary tracing burden is real.

Remember: A claim against your importer depends on the importer first receiving the tariff refund. The refund process is still being finalized at the government level, and the legal landscape is evolving. But early preparation is the key to protecting your rights.

ConclusionThe IEEPA tariff decision has created a substantial financial recovery opportunity for downstream buyers of imported goods. Importers that passed tariff costs through to their customers — and that are now positioned to receive government refunds of those very costs — have a windfall coming at their customers’ expense, unless those customers act.

We would like to thank the entire team at Jones Walker for providing this timely and insightful information to share with our members.

The international trade and supply chain team at Jones Walker is actively advising clients on IEEPA tariff refund recovery strategies. If you would like to discuss your specific situation, please contact them directly.

Marc Hebert is a partner in the Government Relations Practice Group and focuses on the representation of energy, marine transportation, and manufacturing clients. He can be reached at mhebert@joneswalker.com or 202.203.1014.

Alexander Breckinridge, V, is a partner in the Litigation Practice Group and a member of the corporate compliance and white collar defense team. He can be reached at abreckinridge@joneswalker.com or 504.582.8138.

Julia Bonestroo Banegas is special counsel in Jones Walker’s Maritime Practice Group and a member of the maritime regulatory team. She can be reached at jbanegas@joneswalker.com or 202.203.1032.

Keiana Palmer is an associate in the Corporate Practice Group. She can be reached at kpalmer@joneswalker.com or 504.582.8480.

2026: Big Challenges. Bigger Opportunities. – The flooring industry enters 2026 facing a complex mix of pressures—tight labor markets, shifting immigration rules, regulatory reversals, and economic uncertainty. These challenges are real, but so are the opportunities. WFCA is not reacting from the sidelines; we are influencing the policies that define the operating environment for our members.

Immigration & Workforce Pressures – The labor shortage isn’t easing—and immigration rules are tightening. The installer shortage remains one of the industry’s toughest challenges—and tighter immigration rules are making it worse. Higher visa fees, stepped up enforcement, and fewer legal pathways for skilled tradespeople are increasing costs and reducing access to essential labor.

WFCA is advocating for balanced policies that strengthen security while expanding lawful access to skilled installers. Our priorities include streamlined visa options, faster processing for high demand trades, and enforcement that protects—rather than disrupts—legitimate subcontracting models. We are also pressing for broader eligibility for federal workforce grants.

To keep the issue front and center, WFCA is regularly providing lawmakers and federal agencies with real world perspectives and experiences, ensuring the installer shortage remains a national workforce priority.

Building the Next Generation of Installers – The future workforce isn’t arriving on its own—we’re building it. Through our partnership with the Floor Covering Education Foundation (FCEF), WFCA is developing a national talent pipeline by integrating flooring installation programs into community colleges and technical schools, expanding apprenticeships, offering scholarships, creating hands on training labs, and connecting graduates directly with employers.

The impact is already significant. In 2025, 22 colleges launched flooring installation programs, enrolling hundreds of students nationwide and opening new training labs supported by WFCA–FCEF grants. Schools are reporting strong job placements, demonstrating that this growing network is producing job ready installers and establishing a sustainable, long term solution to the industry’s labor shortage.

Regulatory Rollbacks: What They Mean for You – More flexibility is back—but compliance still counts.The Trump Administration has rolled back several Biden era labor rules, giving subcontractor based flooring businesses more room to operate. Key changes include a narrower joint employer standard and the restored independent contractor rule—both major wins for our industry.

But flexibility doesn’t eliminate risk. Misclassification penalties remain high, and enforcement is active. WFCA will remain engaged directly in the regulatory process, submitting comments on rulemakings when necessary to ensure the industry’s voice is heard.

Major 2025 Victory: Section 199A Made Permanent – 20% small business tax relief is here to stay. One of WFCA’s most significant wins in 2025 was securing the permanent extension of Section 199A, the 20% pass through business deduction included in the One Big Beautiful Bill. This achievement provides long term tax stability for the vast majority of WFCA members, many of whom operate as LLCs, S corps, or sole proprietorships.

By making Section 199A permanent, WFCA helped ensure lower and more predictable tax liability, greater year end certainty for small and mid sized businesses, and more capacity to reinvest in employees, training, and equipment. This victory reflects WFCA’s sustained engagement and effective advocacy in Washington—delivering concrete financial benefits that strengthen our members’ competitiveness.

Call to Action: Your Voice Makes the Difference – Policy moves when members get involved. WFCA’s advocacy succeeds because our members show up. You can strengthen our voice in 2026 by joining the WFCA advocacy network for real time legislative alerts, partnering with local FCEF programs—whether by hosting a student, sponsoring a class, or serving as a training site—and staying ahead of regulatory changes by participating in our compliance webinars. When WFCA members engage, we deliver industry shaping outcomes.

President Trump’s signing of the One Big Beautiful Bill (OBBB) Act has delivered significant and lasting tax relief to small business owners in the flooring industry — a major win for members of the World Floor Covering Association (WFCA).

As many WFCA members know, most flooring dealers operate as Subchapter S corporations or Limited Liability Companies (LLCs). These pass-through entities don’t pay corporate income tax; instead, their taxable income “passes through” to the business owner’s personal tax return. Since 2018, Section 199A of the Tax Cuts and Jobs Act (TCJA) has allowed qualifying pass-through businesses to deduct up to 20% of their Qualified Business Income (QBI) when calculating their federal tax liability. However, this provision was scheduled to sunset at the end of this year without new legislation.

The recently passed OBBB Act not only extends Section 199A — it makes the QBI deduction permanent. This ensures long-term tax certainty for small business owners across the country, particularly in industries like flooring, where pass-through businesses dominate. The updated legislation also expands the phase-in thresholds for deduction limitations: from $50,000 to $75,000 for single filers, and from $100,000 to $150,000 for joint filers. These increases reduce the impact of restrictions on Specified Service Trades or Businesses (SSTBs) and other entities subject to the wage and capital investment limitations.

In addition, the OBBB introduces a new, inflation-adjusted minimum deduction of $400 for taxpayers who have at least $1,000 of QBI from one or more active trades or businesses in which they materially participate. This change ensures that even the smallest qualifying businesses receive a guaranteed baseline deduction.

While a wide range of industries will benefit from the 199A extension, few are as significantly impacted as the flooring industry, which consists largely of small, pass-through businesses. Over the past two years, WFCA has actively advocated for permanent, pro-small-business tax policy — meeting with lawmakers, participating in policy discussions, and emphasizing the importance of Section 199A to the health of the industry.

The passage of the OBBB reflects the value of that advocacy. It is a meaningful legislative success that will provide financial stability and growth opportunities for WFCA members across the country.

Running a flooring business successfully today is already challenging. Business owners have to handle complex supply chains, manage installation teams, stay updated on style trends, and stay competitive on prices. Now, a major policy change—the Trump administration’s “Reciprocal Tariff Policy,” announced in April 2025—is adding significant economic uncertainty. This policy introduces new tariffs (taxes) on goods imported into the U.S., potentially raising costs for common flooring products like luxury vinyl plank (LVP), engineered hardwood, ceramic tile, underlayment, and installation tools.

Flooring businesses must understand this policy and prepare for its impacts in order to protect their profits, maintain project quality, and safeguard their company’s financial stability. Ignoring these new tariffs could cause serious cost increases on materials, difficulty finding popular flooring products, delayed projects, and pricing challenges in an already competitive market.

Read this article from Off Deal which explains everything flooring businesses need to understand clearly about the impact of these policies.

The Corporate Transparency Act required many businesses to report their beneficial ownership to the federal government to determine foreign ownership, with severe penalties for non-disclosure. The CTA was supposed to go into effect January 1, 2024, but a series of lawsuits have delayed its enforcement. On March 2, 2025, the Treasury Department announced that even if the law goes into effect, the Department will not enforce any penalties against any U.S. citizens or domestic reporting companies. The Treasury Department also announced its intention to promulgate regulations narrowing the CTA’s scope.

In the short term, this likely means that wholly domestic businesses do not need to fear the steep penalties threatened under the CTA. You should, however, consult with your counsel or financial advisors to determine if your business qualifies as a reporting company. If so, you may consider gathering the information necessary for any beneficial ownership report filings, to be prepared if the courts hold the law enforceable and require the Treasury Department to enforce it. WFCA will continue to monitor for additional updates or guidance.

The WFCA is committed to championing the causes and issues that are important members. For more information on WFCA’s lobbying efforts, please visit Jones Walker Government Relations and Legislative Advocacy.

Given the current administration’s focus on cracking down on illegal immigrants, employers can expect that Immigration and Customs Enforcement (ICE) will be either showing up on their property or conducting audits to examine whether any employees are not authorized to work. The time to plan is before this happens; ensure now that employees and managers know what to expect and what their rights are.

Many employers and employees do not know how to respond when ICE agents show up unannounced. The agents will be seeking to search your property, retrieve documents, and/or speak to your employees. Here are some dos and don’ts for how to handle the situation when ICE agents arrive unexpectedly.

President-Elect Donald Trump is poised to expand upon policies he implemented during his first term in office, including taxes, immigration, and tariffs. The newly elected president and his administration will likely target many Biden Administration policies on employee policies, and more. While it’s not certain when or how those policies might be enacted, many of these actions could be set forth by executive order in the initial days and weeks of a second Trump Administration

Below are some anticipated changes that could directly impact flooring retailers and contractors. Together with our partners at Jones Walker, the WFCA Lobbying team will work to address these issues with Congress and the Trump Administration on to protect WFCA members’ interests.

Taxes: President-Elect Trump promised to extend the expiring provisions of the Tax Cuts and Job Act (TCJA). Many of the provisions of the TCJA expire on December 31, 2025, including qualified business income deduction (QBTD) that reduced taxes for LLCs and subchapter S corporations. President-Elect Trump wants to make permanent the expiring tax provisions of TCJA as they relate to individual tax provisions. He also plans to further lower the corporate income tax rate from 21 percent to 15 percent. The WFCA lobbying program will focus on protecting and possibly expanding the QBTD.

Other tax cuts were also floated, including exempting tipped income and Social Security benefits from federal taxes. The ultimate size and shape of any tax cut may hinge on whether Republicans retain control of the House of Representatives. Regardless of who controls the House, it is likely that most individual tax cuts, including the QBTD, will be extended.

Tariffs: President-Elect Trump has proposed adding a tariff of 10% to 20% on all imports, with significantly higher levies on imports from China. It is likely that he will do this by executive action without Congressional approval. This will impact the costs of imported goods and materials. WFCA will monitor and work to minimize the impact on flooring retailer and contractors.

Another likely issue will be the United States-Mexico-Canada Agreement (USMCA). President-Elect Trump has said that he will formally notify Mexico and Canada of his intention to utilize the six-year renegotiating provision to renegotiate the Agreement.

Immigration: President-Elect Trump has called for mass deportation of immigrants who are in the U.S. illegally. This will likely result in increased immigration raids at worksites, in which government officials arrive at a site with the intention of arresting undocumented workers. There will likely be a sharp rise in I-9 audits as well. There were roughly 12,000 I-9 audits during President Trump’s last year in office, as compared to around 400 during President Biden’s last year. These raids and audits will focus on industries that have large numbers of immigrant workers, including construction.

President-Elect Trump also has plans to restore the Remain in Mexico program and roll back Temporary Protected Status designations, as well as end the immigration parole program for those in humanitarian crises. Additionally, President-Elect Trump has promised to enact a travel ban for people entering from several Muslim-majority nations and regions, including the Gaza Strip. Analysts at the Brookings Institution, the American Enterprise Institute and the Niskanen Center project that net migration to the U.S. could be sharply lower, and even negative, during President-Elect Trump’s second term. As a result, this stricter approach to immigration is likely to affect industries like construction, hospitality, and manufacturing.

WFCA is working with several Congressional members to develop an immigration program that deals with immigrations problems and could provide legal pathways for needed immigrant workers.

Regulations: Under President-Elect Trump, there will likely be a rollback of a number of regulations enacted under the Biden administration. Two significant Biden regulations, the white collar overtime and independent contractor rule, will likely be repealed and replaced with the rules that the Trump administration issued during his first administration. It is also anticipated that enforcement of regulations at federal agencies will be impacted, including regulations at the Occupation Safety and Health Administration (OSHA), the Environmental Protections Administration (EPA), and the Equal Employment Opportunity Commission (EEOC). WFCA will continue to monitor and comment on any proposed regulations to protect its members.

Workforce Development: It is anticipated that the incoming administration will continue the strong support for workforce development initiatives, alternative career pathways and apprenticeships. The WFCA will continue to work with Congress to promote the investing in, the training of and the development of skilled flooring installers.

As of July 1, 2024, the Department of Labor(“DOL”) raised the minimum salary amount for executive, administrative, and professional employees (“Managers and Administrators”) to be exempt from overtime will increase from $684 per week ($35,358 per year) to $844 per week ($43,888 per year). The salary level for highly compensated employees (“HCEs”) will also be raised to increase to $844 per week ($132,964 per year). Moreover, six months later, on January 1, 2025, the salary level will increase to $1,128 per week ($58,656 per year) for EAPs, and to $1,128 per week ($151,164 per year) for HCEs. Thereafter, there will be automatic update of the salary levels every three years. The next update will take place on July 1, 2027.

Although several cases have been filed challenging the new salary levels, employers should continue to prepare for July 1 compliance with the expectation that the rule will take effect as scheduled. The WFCA and Jones Walker are tracking the developments in these cases. In the meantime, flooring retailers and contractors need to prepared for the salary level increase that takes effect July 1, 2024.

Watch the complete webinar and download the complete “Practical Guide” Document.

The seminars are scheduled on Feb. 27, May 15, and Aug. 29, 2024. REGISTER NOW.

The U.S. Department of Labor’s Wage and Hour Division will offer compliance seminars for contracting agencies, contractors, unions, workers and other stakeholders on the requirements for paying prevailing wages on federally funded construction and service contracts. Part of the division’s effort to increase awareness and improve compliance, each day-long seminar will include sessions on the Davis-Bacon Act, Service Contract Ac t, and other related topics. Participants can choose among the sessions offered throughout the day.

While seminar attendance is free, registration is required. Additional information, including links to the sessions for each date, will be provided to participants after registration. Participants need to only register for their preferred seminar date; registration is not required for the individual sessions.

The seminars are scheduled on Feb. 27, May 15, and Aug. 29, 2024. REGISTER NOW.

This year has brought considerable reform to workplace law. With 2023 coming to a close, it is time to recap this year’s legal changes and prepare for what 2024 will bring. See below for articles from Jones Walker highlighting the most significant developments in labor and employment law from the past year.

For more guidance, please contact a member of the Jones Walker Labor & Employment Practice Group.

Client Alerts

“EEOC Rolls Out New Guidance on Harassment in the Workplace,” Jones Walker LLP Labor & Employment Client Alert – H. Mark Adams and Madison Gaines

“Fifth Circuit Overturns Decades-Old Precedent, Expands Scope of Employment Discrimination Claims,” Jones Walker LLP Labor & Employment Client Alert – Jennifer Faroldi Kogos and Jacob J. Pritt

“OSHA Is Not Backing Down — Employers Must Address Risks of Extreme Heat,” Jones Walker LLP Labor & Employment Client Alert – Jane Henican Heidingsfelder and Connor H. Fields

“Practical Considerations for Corporate DEI Programs Following the Supreme Court’s Affirmative Action Decision,” Jones Walker LLP Labor & Employment Client Alert – H. Mark Adams and Emily Gauthier

“Religious Accommodation Requirements Just Took a Turn,” Jones Walker LLP Labor & Employment Client Alert – Sidney F. Lewis, V

“Sexual Assault and Sexual Harassment on Vessels: the Safer Seas Act and Legal Implications on Vessel Owners and Operators,” Jones Walker LLP Maritime Client Alert – Sidney F. Lewis, V and Sara B. Kuebel

“Employer Obligations to Address the Rise in Workplace Violence,” Jones Walker LLP Labor & Employment Client Alert – Jane Henican Heidingsfelder and Jacob J. Pritt

“New Federal Laws Require Additional Protections by Louisiana Employers for Pregnant Workers and Nursing Mothers,” Jones Walker LLP Labor & Employment Client Alert – Jennifer Faroldi Kogos

Blog Posts

“NLRB Issues Memo on Non-competes Violating NLRA,” Trade Secret Insider Blog – Sidney F. Lewis, V

“Legal Challenges the FTC Faces in Light of Proposed Ban on Non-Compete Agreements,” Trade Secret Insider Blog – Joseph F. Lavigne, Thomas P. Hubert, and P.J. Kee

With the decrease in the demand for office space in the aftermath of COVID-19, the federal government and local cities like Philadelphia, New York, San Fransisco, and Los Angeles, are actively working to convert vacant office space into residential. A new federal funding guidebook is available (Link: Commercial to Residential Conversions: A Guidebook to Available Federal Resources) detailing federal resources available to facilitate the development of affordable housing through conversions.

These conversion programs may provide opportunities for flooring dealers. WFCA will continue to provide information on these opportunities. In addition, please contact our legal counsel, Jeffrey King at the law firm Jones Walker (jking@joneswalker.com) if you need any additional assistance or information regarding participating these programs.

The full article is available by clicking here. It is originally from a Jones Walker Banking and Financial Services Newsletter.

There are many different types of insurance — directors and officers (D&O), employment practices liability (EPLI), and general liability, to name a few. Unfortunately, many clients do not know what is in their policy or policies, including what is covered, their deductibles or retention, or, in some unfortunate cases, that they have no policy at all.

This article attempts to help you answer some simple questions about what to look for when you are buying a policy and what to look for in a current policy when you need to use it. It is not an attempt to promote any particular policy, as each policy has to be read in light of the specific facts at issue.

Click here to view the entire article.

As you may know, over 98% of all businesses are “pass-through” businesses that benefit from the 20% tax deduction on qualifying income. Most WFCA members benefit from the pass-through deduction. The pass-through deduction is scheduled to expire at the end of 2025, and small businesses will be forced to reduce wages or eliminate jobs.

On May 24^th, Sen. Bill Cassidy (R-LA), along with Sen. Steve Daines (R-MT) and 12 Senate colleagues listed below introduced the Main Street Tax Certainty Act.

List of Cosponsors:

Sen. Steve Daines (R-MT)
Sen. John Barrasso (R-WY)
Sen. Bill Cassidy (R-LA)
Sen. Chuck Grassley (R-IA)
Sen. Marsha Blackburn (R-TN)
Sen. Tim Scott (R-SC)
Sen. Thom Tillis (R-NC)
Sen. Roger Marshall (R-KS)
Sen. Jim Risch (R-ID)
Sen. Kevin Cramer (R-ND)
Sen. Katie Britt (R-AL)
Sen. Mike Braun (R-IN)
Sen. Bill Haggerty (R-TN)
Sen. Ted Cruz (R-TX)
Sen. Roger Wicker (R-MS)

This bill would make permanent the 20% pass-through deduction on qualifying income included in the Tax Cuts and Jobs Act of 2017. To read a press release from Sen. Cassidy’s office explaining the bill, click here.

If your home state Senator is not on the list of sponsors, we encourage you to call their office and ask them to cosponsor the Main Street Tax Certainty Act to protect small businesses in the flooring industry. If your home state Senator is on the list above, they are a current cosponsor of this important legislation, and a call to their office thanking them would be welcome.

To find your Senator’s office contact information, visit this link: https://www.senate.gov/senators/senators-contact.htm or contact the U.S. Capitol Switchboard operator who can connect you directly with the Senate office at 202-224-3121.

The U.S. Senate is currently debating the nomination of Julie Su to lead the U.S. Department of Labor (DOL). As explained below, her record as the Secretary for the California Labor and Workforce Development Agency and U.S. Deputy Secretary of Labor raises concerns for small business owners.

The WFCA is requesting that you contact your Senators and urge then to oppose Ms. Su’s nomination. You simply need to call or text each office and explain:

The U.S. Senate is currently debating the nomination of Julie Su to lead the U.S. Department of Labor (DOL). As a small business owner and job creator, I have serious concerns with Julie Su’s nomination for Labor Secretary, and I would urge Senator [Name] to oppose her nomination.

Overview of Concerns Regarding Ms. Su’s Nomination:

As Secretary for the California Labor and Workforce Development Agency, Ms. Su’s actions were not friendly to small businesses.

Ms. Su was instrumental in the implementation of AB 5 —the controversial law that implemented the most restrictive standard for independent contractors, and effectively threatens to reclassified independent contractor as employees in the state of California.
Ms. Su also oversaw the Employment Development Department (EDD), the state’s unemployment insurance (UI) program, which paid out at least $31 billion in fraudulent payments, more than double the annual budget of the agency she will be responsible for managing. The California State Auditor found that, “Despite repeated warnings, EDD did not bolster its fraud detection efforts until months into the pandemic, and it suspended a critical safeguard.”
Ms. Su’s unsuccessful negotiation between rail employers and rail unions required Congress to step in and resolve the dispute.

Ms. Su’s tenure as the U.S. Deputy Secretary of Labor has also raised questions.

Ms. Su is overseeing the development of independent contractor rule at DOL, that would make independent contractors employees simply because they were required to “comply with legal obligations, safety standards,” or developed and maintained a business relationship with a retailer. The proposed rule also requires a contractor make investment in its business, but excludes tools and equipment as part of the investment.
Ms. Su also supports a new joint employer rule that would impact the almost 800,000 franchises operating in our communities.
During Ms. Su’s tenure at DOL, she has had quarterly check-ins with a variety of other labor groups, but has had a single meeting with a private-sector employer.

WFCA needs your help in protecting against these policies that are likely to adversely impact flooring retailers and contractors.