Category: Coronavirus

Coronavirus Outbreak Causes Major Employment Issues in the U.S.

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As the Coronavirus (COVID-19) continues to spread, companies have closed, workers are required to stay home, and travel has been restricted. In addition to the obvious health concerns, COVID-19 is having a major impact on the U.S. economy. As the outbreak continues to impact companies in the U.S. and worldwide, legal experts are urging companies to review their legal contracts, employment agreements, and handbooks to ensure that they are protected from breaches in cybersecurity and other negative exposure.

U.S. companies conduct a significant amount of business with manufacturers in China. However, the outbreak has disrupted the supply chain, causing significant delays in the delivery of contracted goods. U.S companies that are awaiting goods from China should review their business contracts to determine what their rights are if their goods are delivered late, or not at all. However, despite what the contracts say, Chinese suppliers may obtain a force majeure certificate, which exempts exporters from fulfilling contractual agreements with overseas buyers as a result of the pandemic.

Impact of Coronavirus on U.S. Employers

President Trump signed an executive order suspending entry into the United States of all foreign nationals who were in China within 14 days of arriving in the U.S. Immediate family members of U.S. citizens are exempt from the order. Those not exempt are subject to a two-week mandatory quarantine upon their arrival in the U.S. It is unlikely that travelers who contract the virus will receive employment protection, unless they were traveling for business or were subjected to a mandatory quarantine. If this is the case, the U.S. company would be required to continue paying the affected individual.

Symptoms of COVID-19 include fever, nausea, vomiting, diarrhea, shortness of breath, and coughing. If a worker shows any of these signs, and was in an area with confirmed cases of the virus, the employer should immediately contact the communicable disease section of the state department of health. It is imperative that the worker be tested to confirm whether he or she has the coronavirus.

Workers who are returning from China may have be asymptomatic. Employers should consider requesting that the employer remain home for 10 to 14 days until the incubation period has passed. However, if the worker alleges that he or she was forced to stay home, he or she may allege that it was due to a perceived disability, which would be a violation of the Americans with Disabilities Act. If the decision was based on the worker’s travel history, it is unlikely that the employee will be able to defend their claim.

Employers can avoid liability and claims of discrimination by focusing on their travel history, as opposed to their national origin, and paying their workers so they do not suffer damages from missed days of work due to the virus. Employers should try to be accommodating to employees who were quarantined and are reintegrating into the workforce.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Assist Employers with Employment Issues Related to the Coronavirus

If you have concerns about how the COVID-19 will impact employment law, the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. can assist you with these matters. To schedule an initial consultation, call us at 215-574-0600 or contact us online. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Small Businesses are Eligible for up to $2 Million in Loans through the Small Business Administration’s Economic Injury Disaster Loan Program

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The Economic Injury Disaster Loan Program (“EIDL”) is a Small Business Administration (“SBA”) program that operates directly through the SBA. Small businesses, those with five hundred employees or less, must show that it is affected by a disaster, such as the COVID-19 pandemic, to qualify for loans.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), passed by Congress and enacted into law on March 27, 2020, expanded the EIDL Program by allowing small businesses to take out loans of up to $200,000 without having to put up collateral or make a personal guarantee. Additionally, the CARES Act established an emergency grant to allow eligible small businesses that have applied for an EIDL to request an advance on the loan of up to $10,000. Even if the business is ultimately denied an EIDL, it will not be required to repay the advance payment. Although small businesses are generally not restricted on how they use an EIDL, the cash advance must be used for specific purposes, such as to pay fixed debts, payroll, accounts payable, and other related bills.

Small businesses can receive an EIDL loan of up to $2 million, however, loan terms, including a determination of the loan amount, are made on a case-by-case basis based on an evaluation of the applicant’s financial information and each borrower’s capacity for making monthly loan repayments. The interest rate on the loan is 3.75% for 30 years. Further, applicants must have a credit history acceptable to the SBA in order to qualify for an EIDL.

Unlike the Payroll Protection Program under the CARES Act, EIDLs are not forgivable, and any loans above $200,000 require collateral or a personal guarantee.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Provide Guidance to Businesses Seeking Loans through the Economic Injury Disaster Loan Program.

If you own a small business, and have questions concerning the CARES Act and applying for a loan through the Economic Injury Disaster Loan Program, you are urged to contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are located in Philadelphia, where we represent clients in Pennsylvania and New Jersey.

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$350 Billion in Forgivable Loans Available to Small Business Owners Through the Paycheck Protection Program

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On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), was passed by Congress and enacted into law. The CARES Act makes loans available to small businesses with fewer than 500 employees, select types of businesses with fewer than 1,500 employees, 501(c)(3) non-profits with fewer than 500 workers and some 501(c)(19) veteran organizations.  As long as the business was in operation on February 15, 2020, it can obtain a loan.

One type of loan available to small business through the CARES Act is through the Paycheck Protection Program (“PPP”). The PPP sets aside $350 Billion in 100% government-backed loans which are Small Business Administration (“SBA”) guaranteed taken from 1800 SBA approved lenders that can accept applications for these loans. Currently, businesses must apply for a PPP loan through a bank with which they have a relationship. That means the business must seek the forgivable loan through a bank that it has a banking relationship, or it must quickly convince a bank to accept it as a customer. The business may need help if it does not have an already viable relationship as a customer of a bank because banks are being swamped with applications for the forgivable loans from their long-time customers, and are not eager to add to their workload with strangers that want to become customers solely for the purposes of obtaining the forgivable loan.  However, in some instances if a bank has a relationship with a law firm, it can convince the bank to accept a client and a new customer. In those instances, the client would open a bank account, and then the bank processes the application for that business to obtain a forgivable loan.

The maximum loan amount under the PPP is $10 million, with an interest rate no higher than 1% and a maximum payback period of 2 years. Unlike other SBA loans, no collateral or personal guarantees are required. The purpose of a PPP loan is for a small business to cover payroll expenses and not have to terminate its employees. Payroll costs are capped at $100,000 per year per employee.

If the business takes out a loan, and it continues to pay its employees at their normal levels during an eight week period after the loan is originated, the amount spent on payroll costs, which includes health insurance costs, state or local taxes assessed on employee compensation, mortgage interest payments, and rent and utility payments, the amount of the loan can be forgiven. No more than 25% of the forgiven amount may be for non-payroll costs. For any portion of a loan that is not forgiven, interest payments are deferred for six months.

Starting April 3, 2020, small business and sole proprietorships can apply to receive loans to cover their payroll and other covered expenses through existing SBA lenders. Independent contractors and self-employed individuals can apply for a loan starting on April 10, 2020.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Provide Guidance to Businesses Seeking Loans through the Paycheck Protection Program.

If you own a small business, and have questions concerning the CARES Act and applying for a loan through the Paycheck Protection Program, you are urged to contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are located in Philadelphia, where we represent clients in Pennsylvania and New Jersey.

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Congress Passes Families First Coronavirus Response Act

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Creating New Rights for Employees and Requirements for Employers of Small Businesses

On March 18, 2020, the Families First Coronavirus Response Act (“Act”) was signed into law, requiring employers of businesses with less than 500 employees to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. Private employers with fewer than 50 employees are exempt when “the imposition of such requirements would jeopardize the viability of the business as a going concern.” The law went into effect on April 1, 2020, and is effective until December 31, 2020.

The Act is comprised of two parts, the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act. Employers are required to provide notice to their employees of their rights under the Act and may do so by emailing the Notice provided by the Department of Labor to their employees. A copy of the Department of Labor’s Notice can be found at https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf.

The Emergency Paid Sick Leave Act

Employees of covered employers are entitled to up to two weeks (80 hours) of paid sick leave at their regular rate of pay, up to $511 daily and $5110 total if they are subject to a Federal, State, or local quarantine or isolation order related to COVID-19, have been advised by their doctor to self-quarantine, or are experiencing COVID-19 symptoms and are seeking a medical diagnosis.

Employees of covered employees are entitled to up to two weeks (80 hours) of paid sick leave at 2/3 their salary, up to $200 daily and $2000 total, if they are caring for an individual subject to a quarantine order or is self-quarantined, is caring for a child whose school or place of care is closed due to COVID-19, or is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services.

Part-time employees are entitled to paid sick leave for the number of hours that the employee normally works over the two-week period.

Lastly, employers cannot require their employees to find a replacement employee for missed time, require the employee to use other paid leave pursuant to policy or law before the employee can use paid sick leave, or discharge, discipline, or discriminate against the employee for taking leave, filing a complaint, or testifying in a proceeding.

Emergency Family and Medical Leave Expansion Act

Employees of covered employers, who have worked for at least thirty days, are eligible for up to 12 weeks of paid leave at 2/3 of their salary, or up to $200 daily and $12,000 total if they are caring for a child under the age of 18 due to a COVID-19 related declared public health emergence and the child’s school or place of care has been closed or the child’s care provider is unavailable.

The first ten days of family leave are unpaid, but the employee may use paid sick leave if he/she qualifies, and can use other PTO if available.

Employers are required to return an employee who has taken family and medical leave to work in the same or a substantially similar position.

Employers with fewer than 25 employees are exempt if the employee’s position no longer exists dues to economic conditions caused by COVID-19, the employer takes reasonable efforts to restore the employee to an equivalent position, and if there is no equivalent position, the employer takes reasonable efforts over the next year to contact the employee if an equivalent position becomes available.

Employers Entitled to Tax Credits to Pay for Paid Sick and Family Leave

Under the Act, employers may receive tax credits up to the maximum amounts that they must pay their employees for paid sick and family leave. Payroll taxes that are available for retention include withholding federal income taxes, the employee’s share of Social Security and Medicare taxes, and the employer’s share of Social Security and Medicare taxes with respect to all employees. If the amount of taxes retained does not cover the costs of their employees’ qualified leave, the IRS will allow employers to seek an expedited advance.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Handle Cases Involving the Families First Coronavirus Response Act

If you are an employee or employer who has questions or concerns relating to your rights and obligations under the Families First Coronavirus Response Act, you are urged to contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. We handle a wide range of employment issues, including paid sick and family leave. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are located in Philadelphia, where we represent clients in South Jersey, Pennsylvania, and New Jersey.

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