Below are five points of focus for Maiello Brungo & Maiello this week:

Updated April 6, 2020

  1. Families First Corona Virus Response Act.  Ensure you are in compliance now. Employers must be prepared for the Department of Labor’s enforcement date of April 17, 2020.  Have you updated your policies and procedures to comply with the FFCRA and provided the necessary notices to employees prior to the enforcement date to avoid disputes? Employers should be considering whether they may be exempt from certain paid sick leave and expanded family and medical leave requirements if providing employees such leave would jeopardize the viability of the business.
  2. Paychecks Protection Program Loan.  Sec. 1106 (f) of the CARES ACT specifically prohibits Loan forgiveness without submitting the documentation required by the CARES ACT.  Proper documentation will be required for the payroll costs and other qualified expenditures during the 8 week Covered Period beginning upon Loan Origination.    Keep good records including the number of FTEs for each pay period.  The FTE average calculation is based on pay periods. We expect additional guidance will be issued regarding this process.
  3. Document Employees Safety Policies.   Businesses permitted to operate must observe CDC guidelines requiring social distancing as well as actions specific to your particular industry appropriate to combat COVID 19.  Publish and post your safety guidelines. Document the specific steps your business is taking to promote employee safety.  Instruct supervisory personnel on a regular basis. Appropriately reprimand and if necessary formally discipline employees failing to abide by safety policies and document your actions.  Employees who fail to abide by guidelines create risk.
  4. Effective April 6, 2020: Order of Secretary of Pa. Department of Health Directing Building Safety Measures. Commercial buildings in excess of 50,000 must maintain a security staff sufficient to enforce the 6 ft. social distancing.   https://www.governor.pa.gov/wp-content/uploads/2020/04/20200405-SOH-Building-Safety-Measures.pdf
  5. Commercial Business Interruption Insurance.  The current message from the insurance industry is “no coverage”.  We encourage you to review your policy and make a claim based on your policy language.  The fact that your premises are no longer “fit for use” or other similar arguments may provide a legal position to trigger coverage.  Significant litigation will place the insurance industry under intense pressure.  Unless a properly formulated claim is submitted you will lose the opportunity.

Please contact us with any questions or assistance you may need regarding these critical issues.

The attorneys of Maiello, Brungo & Maiello are available to answer additional questions and assist you with navigating the loan application process.  Please contact either Lawrence Maiello or John H. Prorok of Maiello, Brungo & Maiello, LLP’s Business Law Team.

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