Update July 30, 2020
The last several months have been a period of learning and adjustment for all of us. Masks. Teleconferencing. Social Distance. “Phased reopening.” Some businesses are finding new opportunities, others are struggling with disruptions to their supply chain. Regulations and loan programs keep changing. Everyone’s situation is a little different and we recommend getting individualized advice. For now, here’s a bird’s-eye view of the status quo as of this week:
Reopening
Even apart from the current freeze on county ‘Phases,’ the Governor’s reopening plan has changed several times. Last week’s changes are listed here: July 23, 2020 reopening plan changes, July 24, 2020 proclamation. Among other things, evictions have been postponed yet again, until at least October 15, 2020.
Several counties have already transitioned into Phase 3. If you are in one of those counties, your business may be reopening or reducing remote work. Here is Washington's Phase 3 reopening guide. Industry-specific guidelines are available at the Governor's website.
The White House has also issued guidance on reopening. DOL, OSHA, and DHHS have issued additional, more specific guidelines, which may be more helpful.
Many businesses wonder what will happen if they ignore the guidelines. In addition to the risk to employees’ and owners’ health, and the possibility of fines or other sanctions, a business—and perhaps its owners or officers personally—risk liability if an employee falls ill. With COVID-19 causing death and long-lasting, perhaps lifetime injury, that liability could be severe. Be aware as well that even following the guidelines isn’t a sure shield from liability. The question has yet to be decided in court. Some members of Congress have proposed creating immunity for businesses that make a good faith effort to follow the guidelines, but again, no such bill has been passed yet.
Courts
Like the rest of us, the courts have adjusted operations. Most motion hearings and bench trials are by telephone or videoconferencing. Federal courts and most state courts have resumed or are about to resume holding civil jury trials. Parties will have to consider whether they want to proceed live, with masked jurors, lawyers, and witnesses, or change to a bench trial. Our litigation team can advise you based on your particular case. Most arbitrators and mediators are working remotely, by teleconference.
Paycheck Protection Program loans
If you haven’t yet applied for a PPP loan and want to, consult a lender and/or accountant soon. The application period ends August 8, 2020. Congress is considering whether to expand and extend the program again, and maybe make forgiveness automatic for small loans (under $100,000), but nothing has been decided yet. Cloutier Arnold Jacobowitz, PLLC is not an accounting firm and will not advise clients on whether to borrow, how to qualify for a loan or loan forgiveness, or how to apply for loan forgiveness. The SBA has issued a FAQ for borrowers. A supplement is expected soon.
We wish each of our clients, and the rest of our community, all the best in getting through this difficult time.