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May 12th, 2020
SBA Clarifies Key Loan Forgiveness Issue for Employers
Over the last several weeks, many businesses have applied for and received loans pursuant to the Paycheck Protection Program administered by the Small Business Association. The main goal of the PPP program was to provide qualifying businesses with funds to either keep their current workforce on their payrolls or rehire employees they had to lay-off at the start of the COVID crisis. A key feature of the PPP loans is that they are potentially 100% forgivable so long as headcount and salary levels remain constant through an eight week period that begins to run when the loan is funded. However, many companies are finding that certain of their employees are unwilling to return to work and are concerned that their PPP loans may not be forgiven due to an unintentional reduction in headcount. In order to assuage these fears, the SBA has said in a published Q&A that former employees who reject a “good faith” offer of re-employment will be excluded from the forgiveness calculation. In order to qualify for this exemption, the offer of re-employment must be in writing, it must be in “good faith” meaning that the employee will be rehired for the same position, working the same hours, and for the same salary, and the employee’s rejection must be “documented.” The SBA ends this answer with an stern reminder that, “employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.” If you have questions about PPP loans please contact Tricia Legittino, Jay Rand, Wendy Stryker, Deborah Wolfe, or Lee Silver.
Other Employment Law Alerts
Checklist: Eleven Policies to Consider Before Reopening Your Business
As economies across the country begin restarting and the COVID-19 pandemic continues, employers have some important, pandemic-related revisions to consider for their employment policies and handbooks. Frankfurt Kurnit’s employment team has been reviewing the applicable federal, state, and local laws, guidelines and regulations to gather a list of specific policies employers should consider creating or revising. Read more.
May 27 2020
California Sues Uber and Lyft for Worker Misclassification
This week, more shots were fired in the ongoing war over AB5. On May 5, 2020, California’s Attorney General and city attorneys for Los Angeles, San Diego, and San Francisco sued Uber and Lyft for misclassification of hundreds of thousands of California workers. Read more.
May 13 2020
California Workers’ Compensation Order Creates Rebuttable Presumption that COVID-19-related Illness Came From Work
As part of his effort to create an “Expanded Workforce Safety Net”, on May 6, 2020, California Governor Gavin Newsom issued an Executive Order creating a rebuttable presumption that an employee's COVID-19 related illness arose out of the course of employment and, as a result, is covered by workers’ compensation. Read more.
May 12 2020
