News

Yesterday the Arkansas Department of Workforce Services issued a Press Release (see below) notifying employers that their annual statements regarding unemployment contribution rates would reflect non-charges for the Second Quarter of 2020, pursuant to the Executive Order issued by the Governor in late 2020.

Over the past year, the news from our group has come in the form of alerts addressing recent changes in the law, mostly due to the pandemic. These are designed to keep employers apprised of legal changes and armed with knowledge to address issues that might arise. COVID-19 came about suddenly, and legislation and executive orders quickly followed. Our legal and business landscapes changed as a result, as did how we operate day to day. From the beginning of the pandemic to today, our labor and employment group has grappled with novel challenges, immersed ourselves in the new laws and regulations, and brainstormed together solutions to the new challenges employers are facing, both COVID-related and non-COVID related.

In a move to consolidate all of the taxing services for the State of Arkansas to the Department of Finance and Administration (DFA), effective as of January 1, 2021, all Arkansas entities required to pay annual Franchise Taxes will no longer file with the Secretary of State and will now file with the DFA.

On October 7, 2020, the Securities and Exchange Commission (SEC) published a rule proposal to provide a safe harbor exemption permitting an individual acting as an unregistered broker or dealer, or “finder,” to engage in capital-raising activities on behalf of smaller private companies without registering as a broker-dealer. The SEC’s proposal (Release No. 34-90112; File No. S7-13-20) aims to address concerns that have been raised by small businesses when attempting to identify “finders” to engage potential investors while raising capital. In today’s capital markets, the SEC has not previously recognized a “finders” exemption or exception, nor has the SEC provided general guidance on “finders”, other than interpretive positions taken by the SEC staff in no-action letters, prompting some to observers to refer to the use of finders as the “gray market.”

Khayyman M. Eddings has been selected to serve on the Board of Trustees of the Arkansas Arts Center through 2024. Khay follows the firm’s former Managing Partner Shep Russell who previously served as President on the Board of Trustees.

The Paycheck Protection Program (PPP) has been extended and expanded to provide more funding for first-time borrowers and to allow some existing borrowers the opportunity to receive additional help. The Economic Aid Act, which become law late last year, allocates $284 billion in additional funds to the program and authorizes the Small Business Administration (SBA) to guarantee loans through March 31, 2021. On January 6, 2021, the SBA provided guidance in the form of Interim Final Rules (First Draw IFR) (Second Draw (IFR) to address eligibility and applications to the expanded program.

On Tuesday, Dec. 29, Governor Hutchinson issued Executive Order (EO 20-54) which grants relief to employers whose unemployment rates might have been adversely affected by the economic effects of COVID-19.