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COVID-19: News and Updates |
| Special #16 - April 10, 2020 |
| Articles Today
- LEGAL BULLETIN - What employers need to know about the Economic Injury Disaster Loan program
Constangy, Brooks, Smith & Prophete, LLP
April 10, 2020
- ¶46,853 Pandemic puts EEOC right-to-sue letters on hold — FEDERAL NEWS
Apr. 10, 2020
- HRDIVE Article - Court closures during COVID-19 cause background check concerns
AUTHOR Sheryl Estrada
PUBLISHED April 9, 2020
- Helpful Reminders and Resources from our news and updates (last two weeks)
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| | | | | | | LEGAL BULLETIN Constangy, Brooks, Smith & Prophete, LLP April 10, 2020
What employers need to know about the Economic Injury Disaster Loan program
The Economic Injury Disaster Loan program is a disaster relief program administered by the Small Business Association. The program, already in place when the coronavirus crisis hit, offers low-interest federal loans to help small businesses and other entities recovery from economic injury as a result of the disaster.
The Coronavirus Aid, Relief, and Economic Security Act modified the EIDL program by loosening the requirements for applicants applying for financial relief under the program.
Here are the details:
Who is eligible?
Employers, non-profit organizations, Employee Stock Ownership Plans, and tribal small business concerns with fewer than 500 employees, and sole proprietorships and independent contractors.
The SBA’s affiliation rules also apply to EIDL applicants when determining the total number of employees.
Is there an eligibility period?
Yes. The eligibility period ends on December 31.
How much can I borrow?
There is a cap of $2 million. The interest rate is 3.75 percent for small businesses, but the maturity date can differ depending on the loan. The maximum maturity date is 30 years. No payments are due for the first year.
In addition, applicants may also receive a $10,000 emergency advance in the form of a grant (no repayment required), within three days after the SBA receives the applicant’s application. This advance does not have to be paid back even if the applicant is ultimately denied an EIDL.
However, recent SBA guidance has indicated that based on high demand, the $10,000 of emergency grant money may be limited to $1,000 per employee for up to ten employees.
What are the current requirements for getting a loan?
The CARES Act waived a number of the requirements to get an EIDL. EIDLs of up to $200,000 do not require a personal guarantee. Loans between $200,000 and $500,000 may require business assets, like machinery or equipment, to secure the loan. Larger loans may require real estate. However, SBA representatives have said they will not turn away borrowers who lack collateral.
Are there restrictions on an EIDL?
Yes. Loan proceeds can be used for payroll, fixed debts, and other obligations that cannot be met due to revenue losses resulting from the COVID-19 crisis. Funds cannot be used toward expanding an employer’s business, including relocations, payment of bonuses or dividends to employees, or refinancing long-term debt.
May I apply for EIDL and Paycheck Protection Program loans?
Yes, but there are restrictions to be aware of. If you received an EIDL from January 31 through April 3, 2020, you can also apply for a PPP loan. However, applicants who receive a loan under the PPP are not eligible to use an EIDL for the same purpose (e.g., using both loans to pay for the same payroll costs). If an applicant applies for both loans but already used the EIDL funds for eligible payroll costs, the PPP loan must be used to refinance the EIDL. (Applicants wishing to use the loan forgiveness feature of a PPP loan must apply 75 percent of the funds toward eligible payroll costs.) For determining the percentage of proceeds applied toward payroll costs under a PPP, the amount of any EIDL refinanced will be included in that total. Finally, proceeds from the $10,000 emergency grant under the EIDL will be deducted from the loan forgiveness amount on the PPP loan.
May I receive loan forgiveness for an EIDL?
No. Unlike qualifying loans under the PPP, an EIDL is not eligible for loan forgiveness. However, as stated above, an applicant may receive up to $10,000 of emergency grant money.
Helpful Links
Here is a link to the SBA’s application for an EIDL. The application process is simple and should take about 15 minutes to an hour.
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¶46,853 Pandemic puts EEOC right-to-sue letters on hold — FEDERAL NEWS (Apr. 10, 2020)
The EEOC has confirmed to Labor and Employment Law Daily that the agency has temporarily suspended the issuance of charge closure documents unless a charging party requests them. This means that charging parties will not be faced with the statutory time limit for filing litigation after the EEOC’s closure of a charge investigation—an obvious concern given the COVID-19 pandemic.
In the federal sector, the EEOC has provided guidance and instructions for both complainants and agency officials to provide similarly needed flexibilities, according to EEOC Spokeswoman Kimberly Smith-Brown.
Easing concerns. "The EEOC appreciates that some people whose charges are currently before the EEOC may be worried that they might have to choose between jeopardizing their safety and protecting their rights," Smith-Brown said. "The EEOC is mindful of this concern, so we have temporarily suspended the issuance of charge closure documents unless a charging party requests them."
"During the COVID-19 pandemic, the EEOC is continuing our mission of advancing equal employment in the workplace and enforcing our anti-discrimination laws, while taking steps to preserve the safety and well-being of our employees and people who believe they have experienced employment discrimination," the spokeswoman explained.
Still on the case. Smith-Brown also noted that the public can continue to use the EEOC’s digital public portal and talk to the EEOC through its toll-free number. The agency is continuing to accept discrimination claims submitted online and over the phone, and it is working to educate the public on the use of these systems.
"The public should know that the EEOC is still working," Smith-Brown said. "Employers should also understand that, notwithstanding the unprecedented circumstances we are now facing, the laws the EEOC enforces remain in full force and effect."
Source: By Pamela Wolf, J.D.
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| | | | Court closures during COVID-19 cause background check concerns
AUTHOR Sheryl Estrada
PUBLISHED April 9, 2020
"Certainly we've seen impacts in states that have been hardest hit by COVID-19, like New York," said Nancy Gunzenhauser Popper, an associate at Epstein Becker Green.
Employers request background checks to verify that a potential hire is who they claim to be and such efforts often include a check of the individual's criminal record. However, courts across the country are restricting access to prevent the spread of COVID-19, which is resulting in delays in background checks of potential hires, according to Nancy Gunzenhauser Popper, an associate in the employment, labor and workforce management practice at Epstein Becker Green.
"Certainly we've seen impacts in states that have been hardest hit by COVID-19, like New York," Gunzenhauser Popper told HR Dive in an email. "Even if courts haven't been closed in certain jurisdictions, the background check company may be limited in having their personnel going to the courts, if there are certain shelter-in-place orders or essential business closures that impact the company's ability to conduct their business."
Some states offer online searches of court records for a background criminal check; however, it may not be equivalent to an in-person search, Anthony L. Picciano told HR Dive in a phone call. Picciano, the chief compliance officer and director of operations at Integras Intelligence, Inc., an investigative and research services company, said records found in online searches may be incomplete or outdated.
According to the National Center for State Courts (NCSC), online court records are not the same as background checks. "For specific information related to a particular case, you must visit or contact the court in which the action was filed," NCSC states on its website. The organization also cautioned that in some states the use of information obtained from an online court record "to deny a person employment, deny a rental agreement, or take any other adverse action against a person is prohibited by law."
Under these circumstances a company could "proceed with the caveat that the offer of employment is contingent upon an actual background check," Picciano said. However, "if you move forward with someone with a criminal background, that could be a problem," he added.
Integras Intelligence and other background and identity service providers are sharing with clients how they are addressing court closures. "Courts that utilize electronic record systems will experience little, if any, delay," Checkr, a background check provider, stated in a recent blog post. "Courts that require in-person records retrieval such as Massachusetts, however, can expect more significant delays." Checkr also said that a "significant increase in background check reports resulting in a pending status'' will occur if the company is unable to access court records in person or electronically.
Some, however, say the disruption is minimal. Sterling, a background check provider, said in a statement that despite closures in many areas during the COVID-19 crisis, it's still able to complete criminal checks with minimal disruption. "Sterling invests significantly in technology and automation that allows us to electronically access criminal record information," Sterling President Lou Paglia told HR Dive in an emailed statement. "This technology has always afforded us the ability to perform background screenings with speed and accuracy. Even during this COVID-19 crisis, amidst social distancing and court closures, we are completing more than 95% of our background screenings, enabling us to meet the urgent hiring needs of our clients at this time."
Options for employers
If an employer must complete a background check check prior to a hire beginning work (due to statute, regulation or contract), Gunzenhauser Popper said companies may choose to delay the start date, "assuming the offer was conditional on the completion of the check."
But if there's no obligation, one option is to ask potential hires to provide criminal conviction information, she said. Employers should make sure that this does not conflict with any ban-the-box laws, some of which prohibit employers from asking applicants to disclose criminal background information at various points of the application process.
Assuming employers can ask applicants to disclose such information, the application process could move forward. "The employer could make an assessment based on the disclosure form alone, or later use it to compare it with information in the background check when it is eventually performed," Gunzenhauser Popper said.
If it's essential for the potential hire to begin without a background check, and the results of the self-disclosure information is satisfactory, the company could have the person begin to work, she said. "If a background check later runs to compare against the self-disclosure, the employer must consider applicable federal, state, and local laws regarding withdrawing offers or terminating employment based on background checks," she added.
Complying with the Fair Credit Reporting Act
Employers also may need to note that, despite the circumstances surrounding the COVID-19 pandemic, the Fair Credit Reporting Act (FCRA) is still relevant, Gunzenhauser Popper said.
"An employer using a third-party consumer reporting agency must always comply with the FCRA when conducting background checks, whether criminal, credit, education, or other types of checks," she said. "This means providing a disclosure to the prospective employee that a background check will be run and obtaining authorization for the employer to conduct the check."
The FCRA does not impose limitations on timing of background checks, Gunzenhauser Popper said. However, many states and cities do limit when a background check can be run — "whether it is after an application is received, after the first interview, or after a conditional offer of employment has been extended," she said.
A company also has the option to run a background check after an employee begins, but the same disclosure and authorization requirements will apply, Gunzenhauser Popper said.
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Helpful Reminders and Resources from our Past News and Updates
Constangy, Brooks, Smith & Prophete, LLP - Coronavirus Resource for Employers
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Gov. Kemp Gives Update on COVID-19 Response
APRIL 08, 2020
Governor Kemp's executive orders will be published here. |
| Poster from OSHA outlines COVID-19 infection prevention measures — AGENCY GUIDANCE,
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The U.S. Department of Labor has resources to help workers and employers prepare for the COVID-19 virus (also known as novel coronavirus).
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| | | Georgia Department of Public Health COVID-19 Daily Status Report
Georgia Department of Public Health COVID-19 Daily Status Report For: 04/02/2020
These data represent confirmed cases of COVID-19 reported to the Georgia Department of Public Health as of 04/02/2020 11:28:33.
A confirmed case is defined as a person who has tested positive for 2019 novel coronavirus.
COVID-19 Confirmed Cases: No. Cases (%)
Total 11483 (100%)
Hospitalized 2351(20.47%)
Deaths 416 (3.62%)
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| | | Live Webinar Leadership During This Crisis:
Proactive Leadership for Employees in a Reactive Mindset |
| Please register for presented by Pete Tosh
Apr 15, 2020 1:00 PM - 2:00 PM EDT
You will have access to hand-outs to download during the Webinar Overview
Today there is a need for a different approach to Leadership. The outbreak & rapid spread of the coronavirus has created havoc not only to our health systems but to the way we work. Overnight many businesses have transitioned millions of employees to work from home. For a great many of those employees, working virtually is a new reality. Additionally, employees are seeing 24/7 pandemic news & their savings being shredded. As leaders & their teams make this sudden shift, it will be a challenge to ease employees’ anxiety, collaborate effectively & function productively
Because of the disruptions caused by the COVID-19 pandemic leaders are being forced to think, behave & lead in ways that are unfamiliar & uncomfortable. With employees unmoored & a work-life experience that’s ever-shifting, leaders need to exhibit a leadership style that is situationally appropriate. Employees & organizations have different requirements & expectations of their leaders – than they did 30 days ago. And organizations & employees – more than ever - need their leaders to ‘step up.’
Join Georgia Employers’ Association and Pete Tosh as he gives you ten proven crisis leadership approaches
Who Should Attend the Webinar? Any leader, manager, or supervisor who wants to improve his/her crisis leadership skills
Topics Covered: This webinar we will discuss the following ten, proven crisis leadership approaches: Developing & Communicating Your Business Preparedness & Response Plan - to Employees & Customers Recognizing the Increased Importance of ‘The Employee Experience’ Flattening the Employee Anxiety Curve Remaining Calm & Avoiding Knee-Jerk Reactions Establishing Clear Goals & Expectations for a Remote Workforce Leading from Home - by Not Acting Like You are Remote Preventing Employees from Feeling Detached Understanding Your Employees’ Unique, Remote Work Environments Taking Advantage of Virtual Meeting Options Rewarding the Employee Behavior You Want Repeated
Webinar Cost $60.00
After registering, you will receive a confirmation email containing information about joining the webinar. Brought to you by GoToWebinar® Webinars Made Easy® To learn more about Georgia Employers' Association Leadership and Management Training please visit our website. Go to training>>
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