All of us who are trying to figure out how best to help our companies survive and perhaps even thrive in the coronavirus crisis should be sure to review and evaluate the insurance policies we carry to protect our companies from unexpected loss. While none of us fully understand the extent of what the current losses could be, a wise business owner looks to all possible ways of mitigating whatever losses do arrive.
Emergency legislation has made unemployment benefits an important financial lever for small businesses faced with closing the margin between expenses and revenues. Labor costs often make up more than half of gross sales for service businesses, so payroll is one of the first places many owners are looking to be able to manage through the COVID-19 crisis. In previous articles, we discussed how to furlough employees, how to seek payroll loans and tax credits under the CARES Act, and specific business relief programs in the DC-Maryland-Virginia region for working capital and layoff aversion.
An information page for the Montgomery County Public Health Emergency Grant Program (PHEG) went live this week. Local businesses, including for-profit and not-for-profit organizations, may be eligible for grants of up to $75,000 from a $20 million fund. $5 million is reserved for restaurants and retail establishments. The catch is that local businesses must show evidence that they have already applied for any applicable State and Federal programs before qualifying for County assistance. We covered some of those programs in a previous article on Financial Assistance to Small Business. Additional programs can be found on the county website.
We are now living in a profoundly new world where many workplaces are being transitioned to teleworking with limited planning or time to test systems. This rapid shift brings challenges that must be addressed and resolved from both a legal and operations standpoint.
Last week, the federal government enacted the CARES Act. It provides economic relief to Americans both as individuals and businesses. While the Act contains a variety of tax, loans and other measures, the following programs are of particular interest to employers and small businesses:
As the number of Covid-19 infections rise, the federal, state, and local governments are taking more drastic actions to protect and support the public during this time. The following updates summarize major changes that affect employers in the DMV:
Another week has passed during the Covid-19 pandemic, and we have seen the DMV governors close all non-essential businesses, schools closing for another month or even the rest of the school year, the legislatures are working to provide relief to employers and employees. The number of positive cases rise even as we wait with baited breath to see whether all the collective effort is “flattening the curve”.
As our governments on the federal, state and local levels respond to the COVID-19 pandemic, the small businesses at the heart of the economy are quickly feeling the impact of each new restrictive measure designed to “flatten the curve.” Fortunately, new relief programs for small businesses are rolling out at every level of government. We have summarized key programs in the DC metro area as of March 25, 2020.
From day to day, hour to hour, as our government responds to the COVID-19 pandemic, our laws change. Some are relaxed, others are altered, and new ones are added.
Many employers routinely include mandatory arbitration agreements for resolving employment disputes with their employees. To the surprise of many employers, such clauses are often ruled invalid. To help assure that your agreement requiring arbitration of employment disputes is enforceable, be aware of the following factors: