News

On Wednesday, March 18, 2020 President Donald Trump signed into law House Bill 6201, the Families First Coronavirus Response Act, (FFCRA) which implements extensive efforts to combat the spread of COVID-19, commonly referred to as coronavirus as well as the economic impact of the virus. This new law includes requirements affecting the coverage under employer sponsored group health plans and health insurance issuers in the group and individual market. Specifically, the provisions affecting health plans focus on mandated coverage of COVID-19 testing.

The EEOC and the Department of Labor have posted recent guidance for employers related to COVID-19. Here are key takeaways for employers:

Locally, Governor Asa Hutchinson announced three different forms of economic aid that are or will be available to assist employers: $12 million in community development block grant funding. This is money from a program administered by the U.S. Department of Housing and Urban Development (HUD).  $4 million for a bridge loan program. The governor stated these funds will be targeted to mid-sized companies to make payments and provide working capital to help these businesses remain viable.  SBA Economic Injury Disaster Loans. The governor has declared a state of emergency for Arkansas small businesses and has sent correspondence to the Small Business Administration (SBA) requesting funds under its Economic Injury Disaster Loan Program.

On Wednesday, March 18, 2020, the U.S. Senate approved H.R. 6201, the Families First Coronavirus Response Act (FFCRA), and President Donald Trump signed the bill into law. The final version of the law contains significant revisions to the draft bill we reported on earlier this week. The FFCRA, as passed, includes two provisions regarding paid leave: 1) the Emergency Family and Medical Leave Expansion Act; and 2) the Emergency Paid Sick Leave Act. Both provisions will go into effect Thursday, April 2, 2020 (15 days after signing the bill). They expire on December 31, 2020.

To combat anticipated financial hardships occurring as a result of COVID 19, the Treasury Department has announced that taxpayers may postpone the payment of up to $1,000,000 in income taxes due for 2019 ($10,000,000 in the case of corporations) until July 15, 2020 without penalties and interest. The $1,000,000 limitation applies regardless of whether the taxpayer is filing an individual or joint return. Income tax returns are NOW DUE JULY 15.*

With the coronavirus spreading rapidly and many state and local governments mandating restrictions on large gatherings, corporations are forced to consider the impact on their upcoming annual shareholder meetings. Most companies we work with tend to hold their annual meetings during the months of April or May, meaning that proxy statements and related documentation are either in the drafting stage or have already been mailed out.

The Treasury Department has issued its proposal on the next phase of legislation, which would include two, $1,000 payments to certain citizens and would devote $300 billion to government-backed small business interruption loans to help avoid layoffs. The loans under this plan would cover 100 percent of payroll for six weeks with a cap of $1,540 per week per employee. The Treasury Department would promulgate rules and regulations regarding interest rates and conditions for eligibility and repayment.