COVID-19
SBA Loan Program Update – Bipartisan support is growing in both the U.S. House and U.S. Senate to expand the 8-week covered period for the Paycheck Protection Program (PPP), as well as provide greater flexibility in how monies can be spent. The Senate favors expanding the loan program period to 16 weeks, while the House prefers 24 weeks. The chambers also take slightly different approaches toward how the money can be spent. The Senate favors broadening the scope of acceptable expenditures to include personal protective gear and “adaptive investments,” like sneeze guards or modified drive-thru windows. The House simply favors eliminating the 75% requirement that monies are spent on payroll. Employers have been lobbying for many of these changes for weeks. The earliest that legislation could be approved would be next week but at this juncture some changes to the program seem highly likely. Meanwhile, many employers were awarded and are spending funds based on the current rules. It’s unclear how they would be treated if Congress decides to lengthen the program. More details.
Those that are already participating in the program are relying on the recently-released loan forgiveness application to calculate their forgiveness eligibility. The application brought further clarity to the process although questions still remain and Congress may change aspects of the program in the coming weeks. In short, the application outlined a few important things. First, the 8-week period for non-payroll costs begins as soon as an employer receives the loan. The 8-week payroll period can be delayed until the first pay period rather than the day of receipt (referred to as the Alternative Payroll Calculation). Operators may prefer this approach because there is still some confusion as to whether or not the period is intended to account for incurred or paid cost during the 8-week time frame. The Alternative Payroll Calculation brings incurred and paid costs into alignment for payroll purposes. Operators will also have to run two different Full Time Equivalent (FTE) calculations, which are outlined in the form, to determine which works best for them. Finally, the form brought greater clarification to limits on pay for owners. In short, it must be the lesser of $15,385 or 8 weeks worth of 2019 pay. Owners cannot give themselves raises or hazard pay for the period. More details.
CDC Guidance – The Centers for Disease Control and Prevention (CDC) released guidance for restaurant operators and other employers. Representatives of the agency ramped up their public statements and appearances this week following press reports last week that the White House delayed the release of guidance. More details.
Business Liability – Press reports indicate that House Democrats may be willing to compromise on language related to a liability shield. Meanwhile, OSHA announced this week that it will update its policies related to enforcement during the pandemic and will begin increasing inspections at all types of workplaces. OSHA will prioritize high-risk industries and workplaces that have reported a large number of complaints. Complaints “alleging unprotected exposures to COVID-19 for workers with a high/very high risk of transmission” should trigger an on-site inspection, per the plan. Unions, for their part, have opposed Congressional efforts to craft a liability shield and the AFL-CIO is suing OSHA to compel the creation of an emergency standard to protect workers from contracting the virus on the job. Finally, Chicago-area workers this week filed a class action lawsuit against McDonald’s for the chain’s “inadequate” COVID-19 protection measures to protect employees and customers.
Independent Restaurant Coalition – The Independent Restaurant Coalition (IRC) continues to earn headlines advocating for smaller operators, pitting their interests against corporate chains.To Access Align's Analysis: Log In or Subscribe
Wages
California – The state minimum wage will continue to escalate on schedule, according to the governor’s revised budget.To Access Align's Analysis: Log In or Subscribe
Michigan – A bill was introduced that would raise the minimum wage for essential workers to $15/hr and tie future adjustments to inflation.To Access Align's Analysis: Log In or Subscribe
Baltimore, MD – The city council is considering a bill that would mandate premium pay for essential workers in the city at $10/hr for shifts less than 4 hours, $20/hr for shifts between 4-8 hours, $25/hr for shifts greater than 8 hours.To Access Align's Analysis: Log In or Subscribe
Portland, ME – Labor community activists have filed the necessary paperwork to begin collecting signatures on a ballot initiative to raise the minimum wage to $15/hr by 2024.To Access Align's Analysis: Log In or Subscribe
Santa Rosa, CA – The city council voted to allow the minimum wage increase slated for July to take place as scheduled.To Access Align's Analysis: Log In or Subscribe
Kroger – The company announced a “Thank You Pay” program to acknowledge employees who worked during the pandemic.To Access Align's Analysis: Log In or Subscribe
Target – The company announced it will further extend its $2.00/hr “hazard pay” bonus program at least through the July 4 holiday.To Access Align's Analysis: Log In or Subscribe
Activism
McDonald’s – Fight for $15 escalated efforts over the past few weeks ahead of McDonald’s annual shareholder meeting.To Access Align's Analysis: Log In or Subscribe
Delivery
California – The state Alcoholic Beverage Control (ABC) issued a new Temporary Catering Authorization (TCA) that will allow restaurants and bars to create an outdoor area to consume food and alcohol.To Access Align's Analysis: Log In or Subscribe
Connecticut – The governor further clarified an existing executive order and is now allowing ready-to-go mixed drinks and cocktails for delivery.To Access Align's Analysis: Log In or Subscribe
New Jersey – The governor signed legislation that would extend by six months the current executive order permitting any business with a retail consumption license or distillery to sell mixed drinks in pint containers and other alcoholic beverages in containers of any size for takeout or delivery.To Access Align's Analysis: Log In or Subscribe
Oklahoma – Legislation is awaiting the governor’s signature that would permanently allow curbside pickup and home delivery of alcohol. To Access Align's Analysis: Log In or Subscribe
Pennsylvania – The governor signed temporary legislation allowing restaurants and taverns to sell prepared drinks and cocktails for carryout.To Access Align's Analysis: Log In or Subscribe
Cincinnati, OH – The city council passed legislation effective immediately capping delivery commissions by third-party platforms at 15%.To Access Align's Analysis: Log In or Subscribe
Los Angeles, CA – The city council voted unanimously to instruct the city attorney to draft an ordinance capping delivery fees at 15% and all other fees at 5%.To Access Align's Analysis: Log In or Subscribe
Santa Monica, CA – Like neighboring Los Angeles, the city manager issued an executive order capping third-party delivery fees at 15% and all other fees at 5%. To Access Align's Analysis: Log In or Subscribe