With PPP funds now issued, employers are starting to bring employees back to work. This process is not always easy, however, and many employers are faced with the possibility that employees will refuse to return to the workplace. So, what to do if an individual refuses to come back to work? What impact will that refusal have on an employer’s PPP loan forgiveness?
On May 3, 2020, the Department of Treasury confirmed that while employers must meet the PPP headcount and funding requirements, employees who refuse to return to work will not reduce the forgiveness portion of an employer’s PPP loan so long as the employer takes specific, documented steps to establish that it tried to bring the individual back to work and the individual refused.
Employers may wish to work with legal counsel in the process of bringing employees back to work to best preserve their ability to seek the PPP loan forgiveness.
Whiteman Osterman & Hanna LLP can assist with these issues and more, as you and your business work to navigate the novel and difficult decisions arising from the COVID-19 pandemic. For assistance with bringing employees back into the workplace under the PPP loan forgiveness limitations, please contact Erin M. Callahan - 518.487.7659 - ECallahan@woh.com, Scott D. Shimick - 518.487.7678 - SShimick@woh.com, or any of the other members of Whiteman Osterman & Hanna LLP’s Labor and Employment Practice Group.
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