On May 1, 2020, Councilmember Kendra Brooks (At Large) announced a proposed bill, co-sponsored by Helen Gym (At Large) and Bobby Henon (6th District), that would increase the amount of paid sick leave available to workers who continue to physically report to their jobs during a “public health emergency.” This bill comes on the heels of much outcry from state and local officials hoping to address the fact that millions of workers have been excluded from federal emergency paid leave during the COVID-19 pandemic. While the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act create certain emergency sick time provisions for workers, these statutes exclude many employees. In Pennsylvania alone, more than 3 million workers have been excluded the law’s exemptions. The Brooks bill would certainly address these shortcomings.
Continue Reading Philadelphia councilmembers propose bill to increase paid sick leave for many federally excluded employees
Coronavirus Aid Relief and Economic Security Act (CARES Act)
Employees refusing to return to work? The SBA offers some protection of PPP forgiveness
By Michael Correll & Amy Harwath on
The SBA’s latest round of frequently asked questions (FAQs) about the Paycheck Protection Program (PPP) gives employers an important new tool to address one of the biggest challenges of trying to maximize PPP forgiveness: How to respond to employees who refuse to return to work by June 30, 2020.
Loan forgiveness is the cornerstone of the PPP, which was established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). To protect jobs, the PPP’s offer of loan forgiveness is in part based on an employer’s ability to maintain headcount through the COVID-19 crisis. Specifically, if between February 15, 2020 and April 26, 2020, an employer reduces its employee headcount, then the amount of loan forgiveness will be reduced. If the employer reinstates those employees by June 30, 2020, however, the loan forgiveness amount will not be reduced. Further explanation of the PPP and loan forgiveness reduction calculation can be found here.
Continue Reading Employees refusing to return to work? The SBA offers some protection of PPP forgiveness
Newly-updated Main Street Lending Program implicates key workplace-related considerations for U.S. employers
By Mark S. Goldstein on
On April 30, 2020, the Federal Reserve System, in conjunction with the U.S. Department of the Treasury, released updated guidance outlining the parameters of a program to support lending to small- and mid-sized businesses by eligible lenders. The April 30 guidance expands on and, in several areas, supersedes prior materials published on April 9.
Known as the Main Street Lending Program (the Program), this initiative establishes new loan facilities for entities (1) with up to 15,000 employees or (2) whose 2019 annual revenue was less than $5 billion, regardless of employee headcount. The Program’s loan facilities can take the form of either new loans (a Main Street New Loan Facility or a Main Street Priority Loan Facility) or expansions to existing loans (a Main Street Expanded Loan Facility). These facilities are “designed to provide support to small and medium-sized businesses and their employees across the United States during the current period of financial strain by supporting the provision of credit to such businesses.”
Continue Reading Newly-updated Main Street Lending Program implicates key workplace-related considerations for U.S. employers
Updated COVID-19 FAQs for employers with U.S. employees
The worldwide COVID-19 pandemic has had, and will continue to have, a substantial impact on the U.S. workplace. Please click here for a series of FAQs we have compiled based on some of the more common questions that clients with U.S.-based employees have posed to us within the past few weeks.
These FAQs are general…
To RIF, or Not to RIF: How federal loans can help small and mid-size businesses under the CARES Act
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed on March 27, 2020, authorizing more than $2 trillion to battle COVID-19 and its economic effects on the U.S. economy. For U.S. employers, the CARES Act provides significant support in the form of loans for small businesses, a loan forgiveness program to encourage employers to retain their workforces during this difficult time, and expanded unemployment benefits applying in most cases to terminated employees, furloughed employees, and those given reduced hours. It also significantly expands the definition of who can receive unemployment benefits to include self-employed workers in the gig economy, independent contractors, and those who may not have an expanded work history.
Although a more fulsome discussion of the contents of the CARES Act can be found here, the purpose of this blog is to discuss certain provisions of the CARES Act on a high level and to identify concerns that employers may face in making the decision to furlough or reduce their workforce.Continue Reading To RIF, or Not to RIF: How federal loans can help small and mid-size businesses under the CARES Act
Counting employees under FFCRA and the CARES Act is not necessarily as easy as 1-2-3
The Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), both enacted last week, provide significant new federal benefits to small businesses and their employees. Critically, both statutes target smaller employers. To that end, they each contain provisions that are only applicable to employers with fewer than 500 employees. However, each statute counts employees differently. This distinction in counting methods between the statutes presents a dangerous compliance trap for the unwary.
Continue Reading Counting employees under FFCRA and the CARES Act is not necessarily as easy as 1-2-3