As reported in our earlier blog post The CARES ACT – Tax Relief, the federal CARES Act provides for forgiveness of indebtedness for eligible recipients of Paycheck Protection Program (“PPP”) loans in an amount equal to the sum of the recipient’s payroll costs, interest on mortgage obligations, rent obligations and utility payments (subject to
California Governor Pulls the Plug on Genetic Information Privacy Act
Governor Gavin Newsom of California vetoed a bill that would have created new limitations on data sharing for direct-to-consumer genetic testing companies.
The Genetic Information Privacy Act (GIPA) asked testing companies to get informed consent from customers before disclosing their data to third parties. GIPA was aimed as a stop-gap to cover data sharing that
…
More Relief on the Way for Healthcare Providers: Provider Relief Fund Payment Opportunities and Flexibility in Repayment Requirements
As the pandemic rages on, and the United States has seen a spike in coronavirus cases in recent days, many healthcare providers are still struggling to care for patients and remain afloat. In response, HHS is continuing support and extending flexibility.
On October 1, 2020, the Department of Health and Human Services (“HHS”) announced $20
…
COVID-19 Enforcement Actions Tracker
The U.S. government has prioritized oversight and enforcement of cases related to the COVID-19 pandemic. Sheppard Mullin’s COVID-19 Oversight & Enforcement Response Team is tracking new federal enforcement actions related to the COVID-19 in areas including fraud under the Coronavirus Aid, Relief, and Economic Stability Act (CARES Act) and Paycheck Protection Program (PPP), hoarding and…
The October 2, 2020 SBA Procedural Notice: Change of Ownership Transactions Involving PPP Borrowers
On October 2, 2020, the U.S. Small Business Administration (SBA) released a Procedural Notice providing guidance addressed to Paycheck Protection Program (PPP) lenders and SBA employees as to the circumstances under which prior SBA approval is required before a borrower of a PPP loan undergoes a change of ownership.[1] In particular, the October 2, 2020 Procedural Notice includes instructions to PPP lenders on how they may address equity or asset M&A transactions, ownership restructurings, or transfers of ownership interests involving their PPP borrowers. Importantly, the October 2, 2020 Procedural Notice does not clearly address the circumstance of a change of ownership of a PPP borrower resulting from the issuance of additional ownership interests in the PPP borrower.[2]
…
Department of Health and Human Services Releases New Provider Relief Fund FAQs: Reporting, Single Audits and What You Can Do Now
On September 19, 2020, the Health Resources and Services Administration (“HRSA”) of the Department of Health and Human Services (“HHS”) issued guidance (“September Guidance”) regarding the post-payment reporting requirements applicable to providers who received more than $10,000 in relief fund payments from the Provider Relief Fund (“PRF”) – a fund created by the
…
SB 288: Sustainable Transportation and the “Road to Recovery” for Post-COVID Air Pollution and Unemployment Concerns
By Sara Atsbaha
At the end of the 2020 legislative session, Governor Newsom signed Senate Bill 288 (Wiener)[1] (SB 288) into law. SB 288, which amends the California Environmental Quality Act (CEQA), streamlines the environmental review process for: (i) specific transportation-related projects, including bus rapid transit projects, light rail service projects, construction or maintenance of charging or
…
AB 1947’S New Filing Period for DLSE Claims and Attorney’s Fees Provisions: Coronavirus Legislation in Sheep’s Clothing?
Amid a bevy of legislation crossing the Governor’s desk directly relating to the ongoing public health crisis, Governor Newsom approved AB 1947 with little public fanfare, but significant implications for employers. The new legislation amends the Labor Code in two substantive ways: (1) it lengthens the period of time in which employees can file complaints
…
HHS Releases Rural Action Plan
On September 3, 2020, the Department of Health and Human Services (HHS) released its Rural Action Plan (the “Plan”). The Plan: (i) details the challenges rural communities endure; (ii) provides an assessment of current and upcoming rural healthcare efforts; (iii) lays out a “Four Point Strategy” to address the disparities between rural and urban communities;
…
NYC Employers Take Note: Earned Sick and Safe Time Act Amendments Take Effect September 30, 2020
On September 28, 2020, Mayor Bill de Blasio signed a bill into law significantly amending the New York City Earned Sick and Safe Time Act (“ESSTA”) in order to better align with New York State’s new paid sick leave law (the “NYS Leave Law”). Like its state law counterpart, the amendments to ESSTA (the “ESSTA
…
Reminder: Accrual Requirements Under New York State’s New Paid Sick Leave Law Effective September 30, 2020
As we previously reported, among the sweeping pieces of legislation signed in the midst of the COVID-19 pandemic was New York State’s permanent sick leave law (“NYSPSL”). Under NYSPSL, all New York State employers are required to provide sick leave. Eligible employees may begin accruing sick leave as of September 30, 2020, but are
…
Residential Eviction Protections and California Consumer Financial Protections Pass Muster During 2020 Legislative Session
During the eleventh hour of the 2020 legislative session, the State legislature approved 2 significant bills in response to the COVID-19 pandemic with the potential to have far-reaching ramifications for mortgage servicers.
Assembly Bill 3088
The first of the bills this article discusses is Assembly Bill (AB) 3088,[1] which temporarily prevents evictions due
…
Employment, Tax, and Visa Issues Associated With the Overseas Telecommuter
Given the pandemic and all that has come along with it, telecommuting has become the new norm. Employers are increasingly faced with difficult legal issues pertaining to not only the out-of-state telecommuter, but also the foreign national who “telecommutes” from overseas due to travel and visa restrictions. U.S. employers may still want to utilize
…
California Housing Legislation 2020
Governor Gavin Newsom just signed a number of housing bills into law that were passed by the Legislature this session ending on August 31, 2020. Due to the severe scheduling constraints placed on lawmakers by the COVID-19 pandemic among other challenges, the Legislature was only able to pass a small number of bills related to
…
FDA Update: The Latest on Vaccine Development, Inspections, and Conducting Clinical Trials During Covid-19
This week, FDA Commissioner Stephen M. Hahn, M.D., along with Dr. Anthony S. Fauci, M.D., of the National Institute of Allergy and Infectious Diseases (NIAID), National Institutes of Health, and officials from the Centers for Disease Control and Prevention and U.S. Department of Health and Human Services testified on Capitol Hill on the federal response
…
Mother of All Presumptions 2.0: Expanding Workers Compensation Benefits to Employees That Test Positive for COVID-19
Effective immediately, Senate Bill (SB) 1159 is a new California law that establishes presumptions about workers’ compensation benefits for employees who contract COVID-19. This article explains in a series of questions and answers what employers need to know about workers’ compensation under this new law if an employee tests positive for COVID-19.
NEWSOM’S EXECUTIVE ORDER
…