Monthly Archives: April 2020

Texas Employer Requirements for the “Great Reopening”

Governor Greg Abbott is allowing retail businesses to reopen for curbside and home delivery on Friday, April 24, and is talking about allowing many other businesses, like hair salons, to reopen soon. But Texas employers should know that there are many requirements to protect your employees and customers from COVID-19 that you must address before you reopen.

The Department of State Health Services has condensed the “retail to go” requirements down to two pages here, and employment lawyers like me expect that similar precautions will be required as other businesses start to serve customers again.

The first decision an employer in the Texas Panhandle must face is whether to reopen at all. Gov. Abbott specifically said on Wednesday, April 22, in radio interviews, “there are some counties where the coronavirus outbreak is still progressing too rapidly, and they may not be able to fully participate in the initial phase of reopening until they get the spread of the coronavirus in their county under control.” Guess which counties he specifically named? Moore, Potter and Randall. Yes, friends, we are now a hot spot in Amarillo. The virus is not “under control” here, according to our governor.

Our area is seeing the kind of spike in COVID-19 cases that should make you at least carefully consider waiting to reopen. However, if you decide that economically you must open your retail business for curbside and delivery, or another business once allowed, here are the minimum requirements for employers, according to the DHSH guidance regarding the Texas Retail to Go Order:

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Loan Approval

PPP Loan Tips for Texas Employers

So your Texas Panhandle company has received Paycheck Protection Program (“PPP”) funds, hopefully, and now you are wondering how to use those funds to maximize your loan forgiveness.

Local banks moved very quickly to assure that more than $750 million of the stimulus funds will help small businesses in our area. We all have 8 weeks to spend these funds legally and wisely to hopefully avoid any repayment of these federal loans, effectively turning them into government grants.

In the end, all of us want to use the funds to keep our employees and our businesses going in these challenging times. But there is little guidance from the Small Business Administration on how to do that. As things stand today (things are changing rapidly, so check with your employment lawyer before you make any final decisions), here are the important tips for small Texas employers about spending your PPP money:

When do I spend this PPP money?

The actual CARES act says that you must spend your PPP funds in the 8-week “covered period” after “the origination date” of your loan. The SBA has decided that the 8 weeks starts running the day that your loan was funded. That means that the date that the loans hit your account is when the clock starts running. For example, if you received your funds on April 6, 2020, you have until June 1, 2020 to spend the money.

How do I spend this PPP money?

The SBA (not the actual statute) requires that 75% of your PPP funds be spent on “payroll costs.” The CARES act defines “payroll costs” this way:

  • Salary, wage, commission, or similar compensation;
  • Payment of cash tip or equivalent;
  • Payment for vacation, parental, family, medical, or sick leave;
  • Allowance for dismissal or separation;
  • Payment required for the provisions of group health care benefits, including insurance premiums;
  • Payment of any retirement benefits; or
  • Payment of state or local tax assessed on the compensation of employees.

The CARES act goes on to point out that the following items will not be considered “payroll costs”, meaning that you cannot claim any forgiveness for these amounts, so they should not be paid out of designated PPP funds:

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Webinar for Texas Employers on CARES and FFCRA

Today, Texas employment attorney Vicki Wilmarth and health insurance benefits expert, Josh Butler, presented a webinar entitled Texas Employer’s Guide to Coronavirus Legal Issues.

Even if you missed the webinar live, you can watch the free 1-hour presentation for an overview about the Families First Coronavirus Response Act (“FFCRA”) (paid leave law) and Coronavirus Aid, Relief and Economic Security Act (“CARES”) (stimulus bill) on your own time. https://youtu.be/BGJCnHOJp18

You can also view the slides from the webinar here.