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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
Reopening: Can an Employer Require Antibody Testing For Returning Employees?
Last week, the EEOC updated its COVID-19-related guidance for employers, titled What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws. In general, this EEOC resource contains important guidance to help employers implement strategies to navigate the impact of COVID-19 in the workplace. In the most recent update, the EEOC answered the question: Under the Americans with Disabilities Act (ADA), may an employer require antibody testing before permitting employers to re-enter the workplace? Read more.
June 23 2020
California Employees Who Refuse to Return to Work Risk Loss of Unemployment Benefits
Here’s some news for California employers and employees wrestling with the question of how to return to work. Read more.
June 16 2020
EEOC Updates Key Guidance for Employers Reopening Workplaces
The EEOC updated What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws. The update contains important new guidance to help employers manage employee requests lawfully while reopening offices and other workplaces. Read more.
June 16 2020