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

Last Updated: June 1, 2020

Paychecks Protection Program (“PPP”).  On Friday May 28, 2020 the House passed H.R. 7010 by a vote of 417-1 modifying several of the CARES Act PPP provisions.  The Senate is expected to take up the bill this week.  Key modifications include reducing the 75% payroll cost requirement to 60% and extending the eight (8) week Covered Period to the earlier of 24 weeks from the origination date or December 31, 2020.  We will continue to provide updates as the Senate considers the bill.

Construction and Green.  Green does not mean go, but It does loosen the construction restrictions issued by Governor Wolf.  The following requirements are changed in the Green counties: The are no limitations on the number of workers on residential and commercial job sites, gatherings can now be up to 25 people while social distancing, and workers may travel to the job site together, as long as the occupancy of the vehicle is limited to half the occupancy load and face masks are worn by the occupants.

Wrongful Termination Claims.  As employees are being asked to return to work, numerous claims and lawsuits have been filed, contending that the terminations and/or refusals to provide accommodations after the employee refused to return to work were violations the ADA or FMLA.  Employers must understand the interplay between COVID 19, the ADA, and the FMLA and address potential issues before mistakes are made to avoid these types of claims.  Contact MBM before the problem arises and avoid costly and potentially unnecessary claims or lawsuits.

Proactive Lease Renegotiation.  Landlords facing potential tenant bankruptcies may want to work with tenants to renegotiate lease terms to increase the likelihood of timely post-petition payments.  Although the Bankruptcy Code requires debtors to pay post-petition rent for property they continue to use, Courts have been lenient in delaying the time for payment.  For example, Modell’s Sporting Goods Inc., was successful in delaying March and April’s rent payments until the end of May.  J. Crew is now seeking similar relief.  Avoid these circumstances by working with MBM to renegotiate lease terms in advance of bankruptcy.

New Residential Sale Listings.  Listings declined 74.8% in April 2020 compared to listings for April 2019.  In-person real estate business only recently (May 19) re-opened from the COVID restrictions in Pennsylvania and closing activity has been increasing at an ever-increasing pace.  MBM Property Services, LLC stands ready to assist both Buyers and Sellers avoid delays and to navigate a timely sale and purchase of a property by offering title insurance and settlement services.

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

John H. Prorok
John Prorok

John Prorok possesses an invaluable understanding of privately held business owners’ needs in business planning, corporate formation, and transactions. He frequently speaks and counsels emerging and start‐up enterprises, offering insightful legal strategies toward success.