Posts from March 2020.
Posted in Business Law
CARES Act: Economic Injury Disaster Loans

On March 6, 2020, Congress passed an act deeming the COVID-19 pandemic a disaster eligible for the SBA’s Economic Injury Disaster Loan (“EIDL”) Program.  On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, providing significant relief provisions for small businesses, including user-friendly modifications to the EIDL Program.   

This client alert briefly summarizes certain provisions which greatly expand, for the period between January 31 and December 31, 2020 (the “Covered Period”), the number of ...

Posted in Business Law
CARES Act: Paycheck Protection Program Loans

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), signed into law on March 27, 2020, provides significant relief provisions for small businesses. This client alert briefly summarizes certain provisions of a newly-created loan program—the “Paycheck Protection Program”—which may help your business weather this storm. Given this subject’s urgency and the complexity of the Act, this is simply a short summary to provide you a starting point for exploring relief which may be available to you. Check with your attorney at ECJ for the critical details ...

My grandmother used to say that one of the biggest lies told in America was the statement: “I’m from the government, and I’m here to help”. Grandma was a bit of a pessimist. But the Department of Labor has issued, and continues to add segments to, a very helpful and rather lengthy question and answer page that provides guidance for employers on implementing the paid sick and family leave requirements under the new Families First Coronavirus Response Act, set to take effect on April 1, 2020. This information is particularly useful in light of the fact that the DOL has not yet provided ...

CARES Act Provides Relief For COVID-19 Individuals and Businesses

At 880 pages in length, “comprehensive” does not seem to do it justice. But the Coronavirus Aid, Relief and Economic Security Act is, in a word, comprehensive. Coming on the heels of the Families First Coronavirus Response Act which focused primarily on relief for employees, the CARES Act seeks to provide both individuals and businesses with immediate relief, and a path forward, as we look to a future following the COVID-19 pandemic.

Individual Relief

Many individuals will receive a check directly from the government. Specifically, individual adults making less than $75,000 in ...

Posted in ECJ Blogs
Business Interruption Insurance Coverage in the Age of Coronavirus

Businesses whose operations have been shut down due to the coronavirus crisis rightly look to their business interruption or business income policies for relief. As a general matter, in order to trigger coverage those policies require (1) direct physical loss or damage; (2) to covered property: (3) arising from a covered peril; and (4) resulting in the suspension of the business’ operations.

In cases where coverage is triggered, an insured business may be entitled to recover the net income it would have received but for the interruption and its operating expenses during the time ...

Special Action Alert  - Oppose LA City Council's Attempt to Require Companies to Hire and Layoff Based on Seniority

The below message has been posted with permission from the Beverly Hills Chamber of Commerce. 

Tomorrow, Friday, March 27th, the Los Angeles City Council is having an emergency remote meeting to consider a new policy to require businesses to lay-off and rehire employees businesses based on seniority.  Under this proposal, businesses need to have “just cause” to terminate an employee, businesses must lay off employees based on seniority and if businesses recall employees it must be done based on seniority.

Click here to see Item No. 2 on the LA City Council ...

Employers Must Use This Notice for the Families First Coronavirus Response Act

The Department of Labor released the required notice for the Families First Coronavirus Response Act today.  All employers covered by the FFCRA must post the notice in a conspicuous place to advise all current employees of their rights under the Act.  The FFCRA, which was passed by Congress and signed by President Trump last week, expands employee leave laws in response to the COVID-19 crisis.  (For more information on the FFCRA, see earlier “What Employers Need To Know About The Families-First Coronavirus Response Act” article on this blog.) 

Since many workforces are currently ...

To assist California employers in understanding the possible application of benefits available to workers in response to the COVID-19 crisis under both state and federal law, we provide the following handy chart:

Click Here to view a print-friendly version of the chart. 

Posted in ECJ Blogs
Coronavirus Advice for Creditors

During this unprecedented time of uncertainty, landlords, financial institutions, vendors, suppliers, and other creditors will undoubtedly be affected. Due to the closure of most businesses which are considered non-essential, it is inevitable that ordinary business obligations such as rent, payments for equipment or inventory financing, employees, and creditors will not be made. It is just a matter of time before business owners default, and creditors will be faced with a problem that unless immediately addressed will only become larger. Some of the obvious signs that a ...

COVID-19: How to Determine If Your Business Should Remain Open 

There is a fair amount of confusion among California businesses regarding Governor Newsom’s “stay home” order and which facilities should remain open.  Unfortunately, Executive Order N-33-20 does not provide much guidance. It does, however, refer to the list of federal government's critical infrastructure sectors posted by the Department of Homeland Security and except those individuals “needed to maintain the continuity of operations” of those sectors. In addition, the state’s website clarifies that critical government services, schools, childcare, and ...

What Employers Need To Know About The Families First Coronavirus Response Act

The coronavirus pandemic has presented challenges for employers trying to remain responsive to the crisis but also struggling to absorb the burden it has imposed on their businesses. With much anxiety, employers have also been anticipating a new law, H.R. 6201, to go into effect that would expand family and medical leave requirements to cover COVID-19. As of yesterday, Congress passed and President Trump signed the final version of H.R. 6201, titled the Families First Coronavirus Response Act.

The Act will take effect on April 1, 2020 and will remain effective until December 31 ...

Coronavirus And The Magic Of The Furlough

As employers struggle to cope with the impact of coronavirus 2019 (COVID-19), we have encountered a surprising number of employers who have been led to believe that a “furlough” is an employer option that can be implemented without regard for various laws that might otherwise apply. It is not. To be blunt, while the term “furlough” seems to be a more employee-friendly word for what many employers are doing, there is no magic to it. Indeed, until the California Legislature or Congress pass more comprehensive COVID-19 relief legislation, employers must still comply with all ...

Urgent: Governor Newsom Issues Executive Order to Address Cal-Warn Concerns In Coronavirus Crisis 

In an effort to address some of the issues presented by California’s WARN Act in connection with the COVID-19 crisis, Governor Newsom has issued Executive Order N-31-20 partially suspending certain provisions of Cal-WARN.  As we reported here, the wording of California’s WARN Act exposes employers temporarily closing or engaging in layoffs due to COVID-19 to liability for back pay, the value of benefits, penalties of $500 per day and attorneys’ fees.  Unlike the federal WARN Act, California’s version has no exception for unforeseen business circumstances and requires ...

What Employers Should Know About The Coronavirus 

Given the level of concern regarding the coronavirus, providing employees with reliable information and establishing both a prevention plan and a plan to follow if illness occurs is a good way to avoid panic and help ensure a healthy workplace. 

The Centers for Disease Control (CDC) recently held a press conference to provide an update on the current status of the coronavirus (COVID-19). The CDC published a fact sheet as well as steps to follow if you are sick with the coronavirus. Both publications can be distributed to employees along with a memo outlining steps for prevention and ...

Proposed Fair Scheduling Act of 2020 Will Impose Fines and Additional Pay for the Failure to Provide Advance Notice of Worker Schedules

Senate Bill 850, also referred to as the Fair Scheduling Act of 2020, would require grocery stores, restaurants and retail stores to provide employees with 21-day work schedules, at least seven calendar days in advance.

Employers must pay a worker not exempt from overtime a “modification pay” for each previously scheduled shift that the employer cancels or moves to another date or time, each previously unscheduled shift that the employer requires an employee to work, and for each on-call shift for which an employee is required to be available but is not called into work.  If less ...

California Legislature Scrambles to Amend AB 5, The Independent Contractor Disaster

Assembly Bill 5 became effective on January 1, 2020. The law purports to prevent the misclassification of employees as independent contractors by codifying the ABC test established by the California Supreme Court case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903, along with several other tests and requirements which apply to various types of business relationships. In short, the law is very confusing.  Indeed, by all accounts, AB 5 is flawed, perhaps seriously so. Several lawsuits have been filed to challenge its terms and the California ...

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