Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events
Lindabury Divorce & Family Law attorney and Managing Director of the International Transaction Group, Karolina Dehnhard, was interviewed by 60 Million Kongress, an organization uniting Polish business leaders worldwide as part of their series of influential Global Polish leaders discussing both international divorce and business development in Eastern Europe during the pandemic. You can view the interview here.
Get Back to Work! Guidance for Reopening the Workplace after Stay at Home Orders are Lifted
I. When Can America Go Back To Work?
As employers and employees increasingly chafe at the bit to return to the workplace, businesses must look to state and local stay-at-home directives to determine when they can reopen. It is anticipated that this will occur in phases and will likely depend on the nature of the business and jurisdiction where it is located.
New Jersey: New Jersey’s Stay-At-Home order was initially expected to expire on May 8, 2020. Although Governor Murphy has permitted state and county parks and golf courses to reopen on May 2, 2020, the Governor announced that the stay-at-home directive will remain in place indefinitely until the following six principals in his plan entitled The Road Back are sufficiently met:
Business Challenges You May Encounter in Bankruptcy
Businesses need to prepare for the short and long term challenges that await as COVID-19 continues to impact the economy.
Lindabury is collaborating with Spector & Ehrenworth, a well respected New Jersey bankruptcy and creditors’ rights law firm, to assist clients with challenges they may face, including customers and vendors unable to meet their financial commitments, as well as cash flow or liquidity concerns.
Below are some issues you may encounter and with which our team can assist. Please contact us with any questions you may have.
The DOL Releases Updated Model COBRA Notices To Address Medicare Eligibility and Expands COBRA Deadlines
The Department of Labor (“DOL”) and other federal agencies released updated model COBRA notices and expanded COBRA deadlines in an effort to reduce the risk of participants and beneficiaries losing benefits during the COVID-19 pandemic.
Updated Model COBRA Notices
Under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), an individual who was covered by a group health plan on the day before the occurrence of a qualification event, i.e. termination of employment or a reduction in hours that results in loss of coverage under the plan, may be able to elect COBRA continuation coverage upon that qualifying event. Under COBRA, group health plans must provide covered employees and their families certain notices explaining their COBRA rights. The first is a written notice of COBRA rights, called a “general notice,” which is given to an employee and spouse at the time of commencement of coverage. A group health plan must also provide an employee and spouse with an “election notice” upon a qualifying event, which outlines how to make an election under COBRA continuation coverage. The DOL has created model notices, which plans can use to satisfy these requirements under COBRA.
Second Chance at Paycheck Protection Program Loan: An Overview of Program Application and Loan Forgiveness Requirements
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), signed into law on Friday March 27, 2020, introduced the Paycheck Protection Program (the “PPP”) with the intended goal of preventing job loss and small businesses failure due to losses caused by the COVID-19 pandemic. The PPP was designed to support small business and employees by providing forgivable loans to employers if they maintained their employees and payroll. It was initially funded with $349 billion on a first come, first serve basis. Initial applications from small businesses and sole proprietorships opened on April 3, 2020 and all of this initial funding was exhausted within 13 days, or by April 15, 2020.
On Tuesday, April 21, 2020, the Senate passed an “interim” coronavirus relief Bill, titled the “Paycheck Protection Program and Health Care Enhancement Act” (the Senate Bill). The Senate Bill amends the CARES Act to (i) increase the amounts authorized for the PPP in accordance with Section 7(a) of the Small Business Act, increase the Economic Injury Disaster Loans (EIDL loans), and increase emergency grants under the CARES Act, and (ii) authorize additional funding for hospital and provider recovery and
coronavirus testing.
Scenarios For COVID-19 Related Leave in New York
As part of Lindabury’s work with the Mechanical Contractors Association of New York, James Estabrook and Elizabeth Engret Manzo have authored guidance on COVID-19 related leave under New York state law.
You can download a copy of the guidance here.
New Jersey Delays Effective Date of WARN Act Amendments and Extends the Exemption for Layoffs Due to Disasters and National Emergencies
Since the onslaught of layoffs and furloughs caused by the COVID-19 crisis, many employers found themselves caught in the crosshairs of the onerous severance and notice obligations imposed by the January 2020 Amendments to New Jersey’s Millville Dallas Airmotive Plant Job Loss Notification Act (“NJ WARN Act”), slated to go into effect on July 19, 2020.
To alleviate the consequences for businesses already struggling with the effects of the pandemic, on April 14, 2020 Governor Murphy signed into law a bill that delays the effective date of the NJ WARN Act amendments until 90 days after the lifting of the COVID-19 state of emergency, currently expected to expire on July 7, 2020. Unless the Governor extends the state of emergency to a later date, the NJ WARN Act amendments will not go into effect until October 5, 2020. The new law is effective immediately and is retroactive to March 9, 2020.
As we discussed in a prior publication, the NJ WARN Act was amended to significantly expand employee rights in the event of a plant closure or mass layoff. Among other things, the amendments
Community Associations – Practical Guidance During the Coronavirus Shutdown
New Jersey residents are now one month into the statewide shutdown, as the COVID-19 pandemic continues to disrupt nearly every aspect of our daily lives. At this time, property managers and boards have developed practices to provide for social distancing and routine cleaning, however there are a host of potential issues on the horizon that communities should be aware of, and prepared for.
As a primary matter, associations need to stay informed of the ongoing executive orders, as well as state, and federal legislation. Relevant laws are being issued on a rapid and ongoing basis. Although Governor Murphy’s most significant Executive Orders, No. 107 and 108, issuing the directive to stay at home, and invalidating conflicting local ordinances, there are a variety of other orders and laws that present issues unique to community associations.
FINANCIAL IMPACT – FLATTEN THE CURVE
When an Employee Needs Leave Under the FFCRA, What Documentation Does the Employer Require to Receive Tax Credits?
Our employee says they need Paid Leave under the FFCRA. What documentation can the company require from the employee to ensure these payments qualify for employer tax credits?
Under the Families First Coronavirus Protection Act (FFRCA), employers are eligible for tax credits for any payment of qualified Emergency Sick Leave or Emergency Family and Medical Leave benefits mandated by the new law. Going forward, employers must be sure to require and maintain appropriate documentation from employees requesting leave to substantiate to the IRS that the employer credit is warranted. Additional information about what constitutes a “qualified” use of Emergency Sick Leave or Emergency Family and Medical Leave can be found here.
Eligible employers are entitled to retain a 100% credit for the payment of all qualified sick leave and family leave wages, plus allocable qualified health plan expenses and the employer’s share of Medicare taxes, rather than depositing them with the IRS. Employers must retain records and documentation related to and supporting each employee’s leave to substantiate the claim for the credits, and retain the Forms 941, Employer’s Quarterly Federal Tax Return, and 7200, Advance of Employer Credits Due To COVID-19, and any other applicable filings made to the IRS requesting the credit.
Administering COVID-19 Relief – Guidance for Employers: Fact Sheets, FAQs and Q&As from Federal Agencies
The speed in which the Congress and various federal agencies have acted in response to the coronavirus outbreak has caused confusion among employers about what they must do to comply with these new laws and regulations. To assist employers we have compiled a list of fact sheets, Q&As and FAQs produced by several governmental agencies that will hopefully provide some clarity.
As always, you can contact Lindabury’s Labor & Employment group with any questions you may have.
US DOL Employee Rights Under the FFCRA poster required to be posted by employers: The FFCRA mandates that employers prominently display this poster in the workplace by April 1, 2020. The poster can be downloaded here.