Monthly Archives: March 2020

On Thursday, March 19, 2020, Governor Wolf issued an Order pursuant to his disaster emergency powers, directing the immediate closure of all businesses that are not life sustaining.  Enforcement of the Order was scheduled to begin on Saturday, March 21, 2020 at 12:01 a.m.

 

Following the issuance of the Order, the Wolf Administration created a process for businesses to request waivers from the closure mandate.  Due to the high volume of waiver requests received, the Administration is delaying enforcement of the Order, which will now begin on Monday, March 23, 2020 at 8:00 a.m.  The amended Order delaying enforcement is available here.

 

In addition to delaying enforcement, the Administration has also issued a revised list of life sustaining businesses.  The list was updated to conform with guidance issued by the Department of Homeland Security concerning Essential Critical Infrastructures.  The Administration has also issued a FAQ addressing questions about the Order. 

 

Requesting a Waiver

 

The Administration created an online waiver application for non-life-sustaining businesses to request an exemption from the closure Order.  According to the Administration, waiver requests will be reviewed by the Department of Community and Economic Development (DCED), and a response will be issued via email.  Businesses applying for a waiver must remain closed until a decision is made about their application. 

 

Businesses that are considering a waiver request are encouraged to contact BCGL prior to submitting their request. 

 

Download a PDF of this article here.

Dear Clients & Friends,

As you are likely aware, Governor Wolf has ordered the physical closure of all “non-life sustaining businesses” effective as of 8 p.m. this evening (March 18).


In anticipation of that order, BCGL has developed a firm wide plan that will enable us to avoid interruptions in service. Although our office is closed, our lawyers and other service providers will continue to work to meet the needs of our clients on a remote basis. Do not hesitate to contact us. We are here and will continue to meet your needs through this historic time.


We are also prepared to advise you on discrete issues related to the impact of COVID-19 including crisis management, human resources, business interruption issues, privacy and security issues, and contractual provisions implicated by the COVID-19 response including force majeure clauses.

If you are scheduled to meet with any of our lawyers or team members at the office, you will be contacted to make alternative arrangements.  


We wish for the continued health and safety of all of our clients, friends and team members and a return to normalcy for everyone as soon as possible.


Sincerely,

Rory O. Connaughton
Managing Member

On Monday, March 23, 2020, at 12:00 p.m., BCGL will host a webinar titled "Coronavirus Update for Employers."  During the webinar, Theresa Mongiovi, Chair of BCGL's Employment & Labor Law Department, will address the following topics:

 

     -Families First Coronavirus Response Act (FFCRA), new sick time requirements,
      expanded FMLA benefits, employer tax credits;
     -Pennsylvania's recent closure directives and how they impact business and 
      industry sectors;
     -Protective measures for businesses that remain open and continue operations;
     -Workforce planning, teleworking arrangements and employee pay issues; and
     -Layoff considerations, unemployment compensation and workers' compensation.

TO JOIN THE WEBINAR
Join us Monday at noon at the following link:  COVID-19 Webinar

You can also dial in using your phone at the following toll free number:  1-877-568-4106
The access code for the webinar is 469-968-469.

 

The webinar will review the Families First Coronavirus Response Act (FFCRA), which was signed into law by President Trump on Wednesday, March 18, 2020.  FFCRA creates new paid leave benefits which impact employers with fewer than 500 employees.  You can download BCGL's Guidance on FFCRA here.

We understand that many of our clients and business partners are evaluating the impact of COVID-19 on their businesses. While the direct impact may be uncertain for many of us, below are considerations to help you navigate any impact.

 

1. Develop a business continuity plan in the event of non-essential business closures.

a. Assess remote options and capability. Identify who is permitted to work remotely. If a current policy is not in place, identify remote work processes.
b. Review essential staff that are necessary to be physically present. Staff that are not required to be present in a location should be permitted to work from home so long as the capabilities are in place. Traveling should be restricted for any unnecessary employee travel.
c. Contact customers. Advise customers of what is happening, who they can contact, and any anticipated interference with regular purchasing/selling, project deadlines, etc.

 

2. Communicate with and prepare a workforce plan.

a. Develop 30-day and 60-day plans to address potential closures, staff absences. Consider the impact of House Bill “Families First Coronavirus Response Act” (“FFCRA”). Access here for a description of FFCRA. Assess and identify the minimum staffing levels required for each department to sustain necessary business functions and operations.

3. Review business contracts.

a. Review and consider customer needs and contractual obligations and rights (including the impact of “Force Majeure” provisions which address unforeseeable circumstances preventing a party from fulfilling a contract).
b. Consider whether projects should be deferred and/or renegotiate compliance timelines.
c. Proactively engage with necessary suppliers to determine if they will be able to meet ongoing demands. If they are unable to continue meeting demands, consider renegotiating terms of agreements.
d. Proactively engage with customers to determine if their ongoing needs are going to increase or decrease and if you will be able to meet those demands.

 

4. Consider liquidity needs and talk to your lender about short term loans.

a. Several large banks are initiating programs to assist businesses.
b. For businesses that are unable to receive credit elsewhere, the U.S. Small Business Administration (SBA) is offering loans for working capital to businesses that have endured substantial economic hardship due to COVID-19. These loans, known as Economic Injury Disaster Loans, can provide up to $2 million in funding for a small business. Proceeds of these loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Interest is 3.75% for small for-profit businesses, 2.75% for non-profit enterprises. The SBA has more information regarding Economic Injury Disaster Loans here.
c. Additionally, the Pennsylvania Department of Community and Economic Development may have additional lending options which could assist businesses during this time.

 

5. Consider refinancing current debt.

a. The Federal Reserve recently cut interest rates by one percent (1%). With interest at historically low rates, consider refinancing or entering into a rate swap (if allowable by your lender and loan documents).

 

BCGL’s Business Law Team of Theodore L. Brubaker and Ryan C. Givens are available to assist you and to answer any questions you may have about coronavirus strategies.


Download a PDF version of this article here.