While we all wait for the U.S. Small Business Administration (SBA) to release its Interim Final Rule providing specific guidance and instructions regarding PPP loan forgiveness, which was originally due to be released April 26, 2020, here is what we know so far. PPP loan forgiveness is based on the borrower’s eligible payroll costs and eligible non-payroll costs “incurred and paid” during the 8-week period measured from when the PPP loan funds were first disbursed. This 8-week period is referred to as the “Covered Period.” Loan forgiveness will be determined by looking at the loan amount received by the borrower and the eligible costs incurred and payments made by the borrower within the Covered Period. Read More
When the Families First Coronavirus Response Act (FFCRA) was passed, it contained a provision allowing the Secretary of Labor to issue regulations providing an exemption from the Act’s paid leave requirements for businesses with fewer than 50 employees. On April 6, the USDOL published a temporary rule regarding Paid Leave Under the Families First Coronavirus Response Act containing such a small business exemption. Section 826.40(b) of the temporary rule describes the small business exemption issued pursuant to the Secretary’s regulatory authority to exempt small private businesses from having to provide an employee with paid sick leave under the Emergency Paid Sick Leave Act (EPSLA) and expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act (EFMLEA). Read More
On Friday, March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a federal stimulus package aimed at providing relief to American individuals and businesses during an unprecedented shutdown of much of the American economy.
Through tax credits, emergency grants, forgivable loans, and loan forgiveness, the CARES Act is designed to provide American businesses with the cash flow and debt relief to retain current employees, rehire employees laid off or furloughed, and to generally weather this severe economic downturn. Read More
On March 18, 2020, Congress passed, and the President signed, a revised version of The Families First Coronavirus Response Act (the Act) that was first passed out of the House on March 14. The Act requires employers with fewer than 500 employees to provide COVID-19-related paid sick and family leave to eligible employees. Significant changes from the original House version that we reported on are noted by underline, below. The Act will take effect within 15 days (April 2, 2020). Read More
The Families First Coronavirus Response Act (FFCRA) requires that employers post a notice advising employees of their rights under the new law. The United States Department of Labor has now published the poster that employers are required to post regarding the new emergency paid sick leave and family medical leave requirements. A copy of the poster can be found here.
The DOL explains that employers can satisfy the posting requirement for employees who are working at home by emailing or mailing the notice to employees. The DOL FAQ states:
- Where do I post this notice? Since most of my workforce is teleworking, where do I electronically “post” this notice? Each covered employer must post a notice of the Families First Coronavirus Response Act (FFCRA) requirements in a conspicuous place on its premises. An employer may satisfy this requirement by emailing or direct mailing this notice to employees, or posting this notice on an employee information internal or external website.
Yesterday evening, March 17, 2020, the Maine Legislature passed Legislative Document No. 2167, “An Act to Implement Provisions Necessary to the Health, Welfare and Safety of the Citizens of Maine in Response to the COVID-19 Public Health Emergency” as emergency legislation to take effect immediately. Included in the Act is a provision that makes employees who are temporarily laid off due to the COVID-19 crisis, or who are sick or quarantined or caring for a family member as a result of COVID-19, eligible for unemployment benefits. There is no waiting period, and there will be no charge against the employer’s experience rating record. If you are in the unfortunate circumstance of having to temporarily cease operations during this public health emergency, the State of Maine has provided a safety net for your employees. Employees should be advised of this emergency unemployment benefit if you need to suspend operations or if an employee is quarantined or caring for a sick family member as a result of COVID-19. Read More
The Families First Coronavirus Response Act (the “Act”), passed in the House and awaiting action in the Senate, would require employers with fewer than 500 employees to provide eligible employees with paid sick leave and emergency paid leave (essentially providing a paid FMLA benefit) for certain specified COVID-19 reasons where: Read More
Hiring employees presents unique challenges for tech companies that do not confront other American businesses. In our experience as outside counsel to tech companies, legal mis-steps typically result from oversight rather than a deliberate intention to flout the law. The checklist below is a structured guide to avoiding these common pitfalls in the hiring process. It applies to Software-as-a-Service providers, custom software developers, mobile app developers, I.T. consulting firms and other tech employers. Read More
Back in March, we reported that the U.S. Department of Labor (USDOL) had released proposed regulations adjusting the salary level required for the executive, administrative, and professional employee (EAP), or so-called “white-collar” exemptions from the FLSA’s overtime pay requirements. The USDOL has now issued its Final Rule, which is set to take effect on January 1, 2020. Read More
The First Regular Session of the 129th Maine Legislature has adjourned, leaving a number of new laws for us all to understand and comply with. Listed below by topic area are what we believe are some of the most important new laws for our clients and readers to know about. We have provided summaries to highlight the major effects of these new laws, but as always, there are details. Please let us know if you are interested in how these new laws might affect you or your business, institution, or governmental body.
The new laws listed below become effective on September 19, 2019 except as otherwise specified.
Governor Mills signed into law “An Act to Promote Keeping Workers in Maine” (26 M.R.S. §§599-A and 599-B), set to become effective September 19, 2019, placing significant limitations on the use of employee noncompete agreements and prohibiting agreements among employers not to solicit or hire each other’s employees. In passing this legislation, Maine joins its New England neighbors, New Hampshire and Massachusetts, in restricting the use and enforceability of noncompete agreements and joins the national trend in striking down so-called “no poaching” agreements. Read More