As detailed in a previous Special Alert from Lipsitz Green Scime Cambria, Governor Andrew Cuomo signed the “New York on Pause” Executive Order, effective as of March 22, 2020, which required a 100% workforce reduction for any business or organization that is not “essential.”
On April 9, 2020, Empire State Development (ESD) updated its guidelines by further clarifying and expanding the scope of businesses considered “essential” (Essential Business). Prior guidance issued by the ESD is now superseded by revised guidelines issued by the ESD yesterday and summarized below.
The past few weeks have brought action by both the federal and New York state governments to assist employers and employees suffering from income loss related to the COVID-19 pandemic. The following is a summary of new legislation on both the federal level and New York state level.
New York State Paid Sick Leave Law
New York State acted swiftly – on March 18, 2020 – to immediately implement paid sick leave for persons affected by COVID-19. Eligibility requires a mandatory or precautionary order of quarantine or isolation issued by a government Department of Health—these are actual written documents given to those under such an order. The law provides job protection for persons under such an order even once the paid portion of the leave is completed, until the order is lifted.
On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provides certain economic relief to businesses, organization and employees impacted by the rapidly expanding COVID-19 pandemic.
Among other things, the CARES Act creates a new loan program guaranteed by the U.S. Small Business Administration (the “SBA”) for the purpose of funding forgivable loans to eligible businesses and organization to assist them in continuing to pay payroll expenses and certain other eligible business expenses. Like many other SBA loan programs, loans may be made to eligible applicants by lenders participating in the SBA’s loan program. Below is a brief summary of the new loan program that may be of particular interest to businesses and organizations contending with the economic fallout from the pandemic.
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