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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
New California Law Makes it Easier for Certain Musicians, Writers, Photographers and Content Providers to Be Deemed Independent Contractors
There’s important news for many individual creatives and the companies that hire them. On September 4th, California expanded the list of professions and employees that are exempt from the so-called “ABC test” – a test governing classification of certain workers. The expansive new law covers many industries, but will have a particularly large impact on the media, entertainment and advertising community. Read more.
September 8 2020
New York Court Strikes Key Provisions of the US DOL’s Rule Regarding FFCRA Paid Sick and Expanded FMLA Leave.
On August 3, 2020, Judge J. Paul Oetken of the U.S. District Court for the Southern District of New York struck down four provisions of the U.S. Department of Labor (“DOL”) regulations (the “Final Rule”) implementing elements of the Families First Coronavirus Relief Act (“FFCRA”) (the “Decision”). Read more.
August 18 2020
5 Tips for When COVID-19 Comes to Your Media Production
You’ve mastered the guidance. You’ve implemented the procedures. You’ve followed all the rules to keep your production safe from COVID-19. But somehow, one of your production team members has tested positive for the virus. What next? Read more.
August 18 2020