This document is created from Frequently Asked Questions we receive from our clients concerning the application of the Families First Coronavirus Response Act (FFCRA) that are not addressed in our original analysis of the FFCRA. It is not the sole input we have on the FFCRA and its practical effect on you and your business. But in the interest of time and due to the onslaught of questions and triage legal advice we are providing into the wee hours of the night, we are doing our best to provide you with information on only the most commonly asked questions that aren't addressed in our other publications. It will be continually updated as more information comes in from the federal government and agencies.
The Families First Coronavirus Response Act (FFCRA), which the President signed on March 18, 2020, is emergency legislation intended to help employers maintain pay for employees who cannot work due to COVID-19 reasons.
Prohibits “appointment only” sales and provides for “on-line” sales and off-site delivery
Published on Mon, 04/13/2020 - 10:16pm
On April 10, 2020, LA County issued a new order further clarifying its shelter in place order, making it clear that all non-essential in-store retail must cease. The order explicitly states remote sales of vehicles are not restricted by the order if the vehicles are delivered to a residence or Essential Business. This means that any car dealer currently offering in-store sales, even if limited to appointment only or for essential workers, must discontinue those sales. If the dealership wants to continue retail sales, it should conduct those sales remotely, being sure to follow state and federal regulations to avoid potential liability.
The Mayor of Los Angeles issued a further emergency order on April 7, 2020, regarding the COVID-19 pandemic directed at certain essential businesses, which more likely than not effects some, if not all vehicle service operations. Retail businesses, restaurants, and delivery businesses that are deemed essential are among the effected businesses as well. Businesses subject to the order now have additional requirements for providing masks, hand washing, and social distancing and may refuse service to customers not wearing masks. The new requirements take effect this Friday, April 10, 2020.
Temporary regulations applicable to the Families First Coronavirus Response Act (FFCRA) were released by the DOL today. Among other things, the regulations clarify that state and local shelter in place and safer at home orders and directives do qualify as a quarantine or isolation order for the purposes of emergency paid sick leave (EPSL). However, this leave is available only when an employer is open and operational and has work for the employee to do, but it is the employee who is unable to work due to the order. Thus, if an employer is closed because it is a non-essential business and ordered to close under the state or local order, or the employer is an essential business (and remains open), but experiences a slowdown in customers such that there is no work for the employee, the affected employee would not be entitled to EPSL absent some other qualifying reason. On the other hand, if the employee is scheduled to work or can telework, but experiences some circumstance related to the stay at home order preventing her from working, she can avail herself of the leave.
On March 19, 2020, Governor Newsom issued Executive Order N-33-20 (“Executive Order”) directing all residents to heed current State public health directives. The order directed all individuals to stay home except as needed to maintain continuity of operations of essential critical infrastructure sectors.
With all of California under a “shelter in place” order from the Governor, car dealers across the state are wondering if their business interruption insurance will cover any of the income lost due to mandatory showroom closures and other disruptions. At first blush, it appears that most insurers will not cover these losses, as most policies only apply where there is damage to the covered building or the immediate vicinity, and others also have exclusions for communicable disease. Nonetheless, depending on the specific wording of your policy and the facts at your dealership, there may be compelling arguments that coverage applies.
Yesterday evening, the United States Senate passed the “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act.” The bill is expected to be taken up for a vote in the House of Representatives tomorrow morning by voice vote at 9 AM EDT, and President Trump has indicated that he would sign the bill when passed.
We have been analyzing the effects and interactions of various new laws, including the FFCRA, and have been working to obtain further guidance from various agencies including the DLSE as to these issues. Additionally, the Department of Labor (DOL) issued new guidance on March 24, providing further clarification on interpreting the FFCRA, here are some of the highlights.
We’ve been getting a lot of questions about how the tax credits work in the Families First Coronavirus Response Act (FFCRA) as there has been a lot of confusion among business leaders and attorneys. We have recently seen some guidance that helps break it down and hopefully answers some of your questions.