Order Up!

California Provides Supplemental Paid Sick Leave For Food Sector Workers

Written by Jeremy Mittman and Stephen Franz

On April 16, 2020, Governor Gavin Newsom issued Executive Order N-51-20 (the ”Order”), which requires “hiring entities” with at least 500 employees in the United States to provide “food sector workers” with up to 80 hours of supplemental paid sick leave related to COVID-19.  The Order, effective April 16, 2020, is the second recent law in California providing paid sick leave to workers not covered by the federal Families First Coronavirus Response Act (“FFCRA”)(which requires employers with  fewer than  500 employees provide paid sick leave).  We previously reported on the Los Angeles emergency ordinance providing similar paid sick leave provisions for employees of larger employers not covered by the FFCRA.

Although the Order explicitly addresses “food sector workers”,  it is not necessarily limited to workers in the food industry.  The Order may apply to employers across all industries, if those employers have workers engaged in food services.  Consequently, all employers should carefully scrutinize the provisions of the Order to determine if they apply.  Here is what employers need to know about the Order: Continue reading “Order Up!”

Contact Tracing: COVID-19

Written by Susan Kohn Ross and Timothy Carter

As the individual states struggle to define how best to reopen in a manner that minimizes the renewed spread of the novel coronavirus/COVID-19, the subject of contact tracing has become a major focus. To aid in this effort, Apple and Google announced late last week a joint contact tracing project that would leverage Bluetooth technology to identify and selectively alert individuals who have been in close proximity to someone who tested positive for COVID-19. Once alerted, that user could self-isolate or seek testing. Individuals who are diagnosed with COVID-19 can self-report their diagnosis, and any users who have been in recent contact with that individual will receive a notification. Public health agencies would be responsible for checking and verifying test results provided by users in order to prevent spoofing or fabrication. Continue reading “Contact Tracing: COVID-19”

Employer Expectations in COVID Conditions

Written by Frida P. Glucoft

Employers should beware: even during the COVID-19 pandemic, certain employer compliance and obligations continue and others are created.

NOTICE: if your work force is working from home and you have any individuals in H1B or E3 status, there are postings and notice requirements. There are technical rules which must be followed and documents to retain for the future when we return to the worksite.

TRAVEL BAN: the travel ban for entry to the USA from abroad remains in effect. The exception is for US citizens and lawful permanent residents and their families. In addition, many countries around the globe do not permit anyone but nationals of their own countries to enter.

Be sure your employees do not make travel arrangements without advising you well in advance. Continue reading “Employer Expectations in COVID Conditions”

CBP Authorizes Duty Payment Deferral

Written by Susan Kohn Ross

Update 4/23/20:
The official Federal Register notice authorizing the duty payment deferral option has been published – please see here. The comment deadline expires on May 20, 2020.

Update 4/20/20:
We noted in our Alert below that CBP stated the decision about whether or not to defer payment of duty had to be made by 11:59 PM today. CBP has now clarified that is 11:59 PM Eastern Time, and the deadline refers to the April Periodic Monthly Statement.

Also, CBP is now saying if the 301 duty exclusion covers the entire entry, the entry is eligible for the duty payment deferral option.

Original Alert:

Despite statements discounting the possibility, saner heads have prevailed and published late yesterday was an Executive Order issued permitting the Secretary of the Treasury to adjust the deadlines related to payment of duty. Executive Order re Duty Payment Deferral.  On that basis, CBP announced a 90 day postponement of duty payment is possible. First, in CSMS 42423171, CBP made clear the option to postpone duty payment for 90 days exists for many entries filed in March and April 2020. However, if the entry involves antidumping duty, countervailing duty, and/or Section 201, 232 or 301 duties, duty payment deferral is not available. While not obvious from the publications available to date, if your goods are subject to a 301 tariff but you have an exclusion, CBP has verbally advised you are not eligible for duty payment deferral. Many more questions are likely and CBP is holding a second briefing with the trade community this morning. The first such briefing took place yesterday evening. During that briefing, CBP indicated the duty deferral decision had to be made before 11:59 p.m. tonight. This is understood to refer to duty payments due today, April 20, 2020. Make sure to consult with your customs broker, but do not be surprised if many are unsure about the application of this newly announced program, due to the timing of its rollout. Continue reading “CBP Authorizes Duty Payment Deferral”

ERC vs. PPP

Written by Robert Lowe

If you didn’t get a Payroll Protection Program (PPP) loan before the SBA ran out of funds, there are still other benefits available under the CARES Act that was recently passed by Congress.

The CARES Act also provides for the Employee Retention Credit (ERC) which is a tax credit equal to 50 percent of the qualified wages paid to employees up to $5,000 per employee.   If you get a PPP loan, one big negative consequence is that you cannot claim the ERC.   So each business needs to make a determination of whether it’s better off with a PPP loan or ERC.   This is a complicated decision which will vary from business to business. Continue reading “ERC vs. PPP”

Paycheck Protection for Non-Profits

Charitable Organizations May Apply for Forgivable Loans Under the CARES Act

Written by David Wheeler Newman and Jean Nogues

As part of the unprecedented $2 Trillion stimulus package (the CARES Act), charitable organizations exempt under Internal Revenue Code section 501(c)(3) with 500 or fewer employees may apply for loans under the Paycheck Protection Program (PPP) provision of the Act.

All loans to qualifying charities will have the same terms: Continue reading “Paycheck Protection for Non-Profits”

Pardon The Interruption, Yet Again

Business Interruption Update Written by Jean Pierre Nogues In an earlier post, we reported that efforts were underway in Congress and New Jersey to get insurers to pay business interruption losses for the COVID-19 pandemic even in the face of exclusions for causes, such as viruses and other biological agents.  Massachusetts, Ohio, and, most recently, New York have joined in this effort and are now … Continue reading Pardon The Interruption, Yet Again

Governor Newsom Suspends Key Provisions of Cal-WARN

Written by Brian Ragen and Daniel Innamorati 

On March 17, 2020, Governor Gavin Newsom issued Executive Order EO N-31-20 suspending key provisions of the California Worker Adjustment and Retraining Notification Act (“Cal-WARN”) in the wake of the COVID-19 pandemic.

Why This Matters

The Executive Order effectively eliminates Cal-WARN’s requirement that employers provide 60 days’ notice for mass layoffs, relocations and cessations of business related to COVID-19.  These events have become widespread as business shut their doors for public health reasons, and compliance has been rendered virtually impossible in many instances.

Continue reading “Governor Newsom Suspends Key Provisions of Cal-WARN”

Merger Modifications

DOJ and FTC Announce Temporary Modifications to Certain Filing and other Procedures under the Hart, Scott Rodino Act (“HSR Act”) For Pendency of COVID-19 Event

Written By Anthony Adler

On March 13, 2020, the Federal Trade Commission (“FTC”) and the Department of Justice (“DOJ”) announced that they have adopted a series of temporary changes to their civil merger investigation processes, which will remain in place during the pendency of the Coronavirus (COVID-19) event.  These changes will ensure that the DOJ and FTC will be able to continue operations as their employees carry out their duties under a mass telework directive in accordance with health guidance from the CDC, WHO, and other health authorities. These temporary measures include the following: Continue reading “Merger Modifications”

Shareholder Distancing

Shareholder Meetings in the Age of “Social Distancing” and COVID-19

Written by Blake Baron

Background

On March 13, 2020, the U.S. Securities and Exchange Commission (the “SEC”) published guidance to assist public companies, investment companies, shareholders and other market participants affected by COVID-19 in connection with their upcoming shareholder meetings. The SEC explained that this guidance was designed to allow these companies to continue to hold their meetings, including through the use of technology, and engage with shareholders under social distancing circumstances, while still complying with the federal securities laws.

Shareholder Meetings – The Impact of COVID-19 and the Natural Transition to Virtual Meetings

Generally, public companies and investment companies are required to hold annual meetings of security holders, with the federal securities laws requiring the delivery of proxy materials to the voting shareholders.  Over the past few years, more and more companies have been transitioning to either complete “virtual” shareholder meetings or “hybrid” meetings, which avoid the need for in-person shareholder attendance. Continue reading “Shareholder Distancing”