PPP Policy Update: Federal Debrief
IMPORTANT UPDATE
The President signed H.R. 7010 — the Paycheck Protection Program Flexibility Act — which passed the House of Representatives last week and the Senate this week. The legislation modifies the Paycheck Protection Program (PPP) to help small businesses through a number of key provisions. It extends the time frame that borrowers have to spend their PPP loans, from 8 weeks to 24 weeks, an important step for most PPP recipients. Additional provisions include:
- Lowering the payroll requirements from 75 percent to 60 percent.
- Extending the loan coverage from June 2020 to December 31, 2020.
- Extending loan term from two years to five years, for the portion that isn’t forgiven.
Published Construction Industry Guidance
In addition to Cal/OSHA Covid construction guidance issued two weeks ago, Fed/OSHA issued new guidance May 26. Similar to California, the Federal guidance “. . . is not a standard or regulation, and it creates no new legal obligations. It contains recommendations as well as descriptions of mandatory safety and health standards. The recommendations are advisory in nature, informational in content, and are intended to assist employers in providing a safe and healthful workplace.” However, “California employers are required to establish and implement an Injury and Illness Prevention Program (IIPP) to protect employees from all worksite hazards, including infectious diseases.”
Previous to this, Governor Newsom issued Published Construction Industry Guidance for the reopening of Stage 2 businesses – which went into effect Friday, May 8.
While construction activities have continued underway in many areas as “essential” since the initial Stay at Home Order, this new info is in line with current practice and protocols and guidance CSA has previously distributed. Members should review the guidance to ensure they are incorporated in current work practices.
The document includes, among other points, cleaning and disinfecting protocols, distancing protocols, control measures and screening, as well as this guidance:
- Establish a written, worksite-specific COVID-19 prevention plan at every facility, perform a comprehensive risk assessment of all work areas, and designate a person at each facility to implement the plan.
- Identify contact information for the local health department where the facility is located for communicating information about COVID-19 outbreaks among employees.
- Train and communicate with employees and employee representatives on the plan.
- Regularly evaluate the workplace for compliance with the plan and document and correct deficiencies identified.
- Investigate any COVID-19 illness and determine if any work-related factors could have contributed to risk of infection. Update the plan as needed to prevent further cases.
- Identify close contacts (within six feet for 10 minutes or more) of an infected employee and take steps to isolate COVID-19 positive employee(s) and close contacts.
- Adhere to the guidelines below. Failure to do so could result in workplace illnesses that may cause operations to be temporarily closed or limited.
COVID-19 Infection Prevention in Construction
SAFETY AND HEALTH GUIDANCE
This information is for construction employers, and describes ways to update their IIPPs to include information on employee training and preventing the spread of coronavirus (SARS-CoV-2), the virus that causes COVID-19, at construction sites. This is mandatory in most California workplaces since COVID-19 is widespread in the community.
Train Employees on COVID-19
- Provide training in a form that is readily understandable by all employees on the following topics:
Information related to COVID-19 from the Centers for Disease Control and Prevention (CDC) – check for updates frequently – including:- What COVID-19 is and how it is spread.
- Preventing the spread of COVID-19 if you are sick.
- Symptoms of COVID-19 and when to seek medical attention.
- How an infected person can spread COVID-19 to others even when they don’t feel sick.
Additional helpful information is on California’s COVID-19 Response webpage.
- Further to this, detailed guidance is found in the linked document (PDF) below, including instructions for the use of cloth face coverings, including:
- Cloth face coverings are not personal protective equipment (PPE) and do not protect the person wearing the face covering.
- CDC has issued guidelines that everyone should use cloth face coverings when around other persons. Employers should provide these coverings for their employees or at least encourage them to use their own.
- Cloth face coverings can help protect people near the wearer, but do not replace the need for physical distancing and frequent hand washing.
- Employees should wash or sanitize hands before and after using or adjusting face coverings.
- Face coverings should be washed after each shift and should be discarded if they no longer cover the nose and mouth, have stretched out or damaged ties or straps, cannot stay on the face, or have holes or tears.
- Practice physical distancing at all times. (Details in linked PDF below)
- Immediately send employees with acute respiratory illness symptoms home or to medical care as needed. Establish procedures to notify local health officials upon learning that someone has a COVID-19 infection. These officials will help employers determine a course of action.
Extensive resources and detailed instructions are found in this PDF guide published by the California Department of Industrial Relations – please read and download a copy here> PDF Guide
Photo by LOGAN WEAVER on Unsplash
Better Video from Home with Cell Phone
Video Tips for the Home Office
Video presentations have become a vital link between our B2B audience, and all of those working from home during the Covid-19 pandemic. We all need to become comfortable making the switch from in-person to online presentations, and this video will help.
If you are worried you won’t appear professional or have a polished video result when creating a sales pitch or educational video at home, you’re not alone.
A lot of doubts might come to mind if you are contemplating a video presentation using your cell phone and your home/ office desk. This short video by CSA Past President, Teresa M. Young, will concisely present a series of tips and best practices to give you the best results possible. In fact, this video was created with a cell phone recording to demonstrate the quality that can be achieved.
You will learn about lighting, what works and what doesn’t. The camera angle makes a big difference, meaning, where is it in relation to your eyes?
Many seminars are pre-recorded these days, or edited after the fact. If you make a mistake while the camera is rolling, using one simple technique will allow for a seamless edit in post-production. Watch Now.
Learn about the “Three Cs” — cushions, carpet, and curtains– and how this impacts your presentation. DO eliminate any visual clutter behind you. Clutter includes magazines in disarray, dark corners with knick·knacks. Note that the background CAN be human and warm, and reflect your personality. This may mean color on the wall, a framed print, a healthy plant. Keep it bright and professional.
DO control ambient noise, which may emanate from distant appliances. Learn more in this video, which was made with cell phone footage and very light post-filming edits!
Bonus Tip:
If you can’t tidy up your space, you can also create a sophisticated virtual background. Check out Canva’s free virtual backgrounds as an example. You can upload these designs to any video conferencing system that allows for customized backgrounds. Not sure how to do this? Providers such as Zoom, Microsoft Teams or Webex, to name a few, give you step-by-step instructions.
And for those organizations and individuals who do not have the bandwidth to craft a first-class video presentation in-house, the School of Sign Arts education production team can take care of that. There are also options for those who have quality MP4 files ready to go. Learn more here about the easy process to get online: SB2 Show Biz
If you want to discuss any of your marketing challenges, feel free to DM me on LinkedIn. Let’s get through these challenging times together.
OSHA Relaxes Covid-19 Requirements
OSHA Relaxes COVID-19-Related Record Keeping and Reporting Requirements
Applies to Most Employers Except for Healthcare Providers
On April 10, 2020, OSHA issued enforcement guidance revising and substantially relaxing its position on employers’ obligation to record on OSHA 300 logs or report to OSHA COVID-19-related infections, hospitalizations and fatalities, in order to “help employers focus their response efforts on implementing good hygiene practices in their workplaces, and otherwise mitigating COVID-19’s effects, rather than on making difficult work-relatedness decisions in circumstances where there is community transmission.”
OSHA previously said that a confirmed case of COVID-19 was recordable (and reportable in the event of hospitalization or fatality) if the case was determined to be work-related. However, due to ongoing and widespread community transmission, OSHA recognizes that the vast majority of employers “may have difficulty making determinations about whether workers who contracted COVID-19 did so due to exposures at work. In light of those difficulties, OSHA is exercising its enforcement discretion in order to provide certainty to the regulated community.” Read More
“Until further notice, however, OSHA will not enforce 29 CFR § 1904 to require other employers to make work-relatedness determinations, except where:
- There is objective evidence that a COVID-19 case may be work-related. This could include, for example, a number of cases developing among workers who work closely together without an alternative explanation; and
- The evidence was reasonably available to the employer. For purposes of this memorandum, examples of reasonably available evidence include information given to the employer by employees, as well as information that an employer learns regarding its employees’ health and safety in the ordinary course of managing its business and employees.”
“COVID-19 is a respiratory illness and should be coded as such on the OSHA Form 300. Because this is an illness, if an employee voluntarily requests that his or her name not be entered on the log, the employer must comply as specified under 29 CFR § 1904.29(b)(7)(vi).”
Federal Heath Pivots for Covid-19
Stepping Up: Federal Heath Converts Manufacturing to Medical Supplies
By Tony Kindelspire • Published April 7, 2020 in SDG Magazine
Federal Heath announces the temporary conversion of its manufacturing capacity from making signs to making personal protective equipment (PPEs) for the medical industry.
“We understand the sacrifices and heroic efforts our doctors, nurses, medical staff and first responders are making in order to keep us safe,” says president and CEO Sid Rasnick. “We have teamed up with a health partner to manufacture and supply protective face shields in record time to the medical industry.”
Federal Heath says it will continue to practice and follow strict social distancing guidelines as put forth by the CDC, joining in nationwide efforts to protect both its employees and the public.
To watch a video of employees at the company’s Rochester Hills, Michigan, manufacturing plant die-cut and assemble protective face shields that the company will donate to medical professionals, click here.
To read the full story in SDG, click here.
Insurance & Covid-19 Claims – Update for Pandemic
Be Smart – Be Safe
April 13 – California Insurance Commissioner Ricardo Lara, ordered insurance companies to return insurance premiums to consumers and businesses and provide much-needed financial relief during the COVID-19 emergency. The Commissioner’s Bulletin covers premiums paid for at least the months of March and April — including the month of May if “shelter in place” restrictions continue — in at least six different insurance lines: private passenger automobile, commercial automobile, workers’ compensation, commercial multi-peril, commercial liability, medical malpractice, and any other insurance line where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.
Be sure to check with your insurance broker to determine whether these refunds apply to your situation. Click here for more information.
In addition – The Worker’s Compensation Insurance Rating Board (WCIRB) proposed changes in response to the COVID-19 pandemic. The following brief summary, outlines the proposed regulatory changes. WCIRB expects to submit this special regulatory filing for approval to the California Department of Insurance (CDI) the week of April 20th. The CDI will schedule a public hearing to consider the filing, and once the Notice of Proposed Action and Notice of Public Hearing are issued, the WCIRB will post a copy in the Filings and Plans section of the WCIRB website. Source – WCIRB website:
Workers’ Comp Governing Committee Approves Special Changes in Response to COVID-19
In response to the impact of the coronavirus disease 2019 (COVID-19) pandemic on California employers and workers, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) Governing Committee voted unanimously to make changes that would affect several key areas:
Exclude COVID-19 Claims from Experience Rating
Claims arising directly from a diagnosis of COVID-19 with an accident date on or after December 1, 2019, would be excluded from the experience rating calculations of individual employers. Since the occurrence or non-occurrence of COVID-19 workers’ compensation claims incurred by an employer is unlikely to be a strong predictor of that employer’s future workers’ compensation claim costs, the inclusion of such claims in an experience modification calculation would not meet the intended goal of experience rating.
> Note: It is important to note that the claim can’t just be a potential Covid claim; there must be a documented diagnosis of COVID-19. This will apply to any claims with an occurrence date on or after December 1, 2019.
Exclude Payments to Employees Who Continue to Be Paid While Not Working
Payments made to employees who are continuing to be paid while not engaged in any work activities would be excluded from reportable payroll. This exclusion would apply while California’s statewide stay-at-home order is in place and for up to 30 days thereafter if the employee continues not to work. Excluding this payroll recognizes the extraordinary circumstances resulting from the stay-at-home order and the fact that employees not engaged in work activities have virtually no work-related exposure.
> Note: It will be important to document that the employee is not authorized to perform work of any kind for that period of time and that this is reflected in payroll records. Specific language is: “Employers must maintain records that document the change in duties and that segregate such payments during this time.”
Allow Assignment of Classification 8810 for Temporary Change in Duties
The temporary assignment of Classification 8810, Clerical Office Employees, would be allowed for employees whose job duties meet the definition of a Clerical Office Employee. This provision would apply while California’s statewide stay-at-home order is in place and for up to 60 days thereafter if the employee continues to meet the definition of a Clerical Office Employee, but does not apply to the payroll of employees whose payroll is otherwise assignable to a standard classification that specifically includes Clerical Office Employees.
> Note: Essentially, this means, for example, that employers will be allowed to reclassify someone who is normally not classified as a “Clerical employee” as a “Clerical employee” under Class Code 8810, for the time that employee is performing only duties that fit the Clerical Office class code 8810. Again, maintain records establishing the work site/environment, duties, dates, etc.
Some Comp Guidance in Response to COVID-19.
- Make sure to document now, showing that you are paying any employee who is not working, that they are not authorized to work. Keep clear records of that payroll, to be excluded from your audit.
- Document the physical site and work characteristics of an employee working remotely, to ensure they qualify for Clerical code 8810. Also consider ergonomic issues regarding their work stations.
- Make sure you are setting the work hours for remote employees, so Workers’ Compensation claims occurring while they are remote; will be occupational only.
- Make sure any claims that are investigated as potential COVID-19, or become actual COVID-19 claims; are coded properly by your claims adjuster to the WCIRB so they will not be counted against future Experience Modification calculations.
- Make sure your protocols are clear for responding to post-termination claims for any laid off employees.
- You may have previously injured employees who are afraid to go in for medical treatment, or may have problems trying to get treatment due to COVID-19 protocols by hospitals and clinics. The Division of Workers’ Compensation has made changes to telehealth rules, to help injured workers get treatment remotely. You may want to follow up with your injured workers to make sure they are getting the treatment they need.
PAYCHECK PROTECTION LOAN INSIGHTS
Be Smart – Be Safe
Anecdotal evidence suggests that upwards of 70% if sign industry shop owners have applied for this program, and while funds have now run out, those who receive their PPP loan in the coming weeks need to be aware of some conditions attached to this money. CSA is sharing this information to help you be smart and stay safe.
Five Things Every Paycheck Protection Program Borrower Should Do After Receiving A Loan
“The Paycheck Protection Program (“PPP”) is the crown jewel of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act allocates $349 billion to the PPP loan initiative in an effort to stabilize small businesses during the COVID-19 outbreak and to allow them to retain their workforces while weathering the Coronavirus storm.”
1) Ensure That The PPP Funds Are Used Only For Allowable Uses
The CARES Act requires that a PPP loan recipient certify that the funds will be used for purposes that are authorized under the act. In the rush to claim PPP funds, recipients should not lose sight of the legal restrictions on the use of those funds.
If a PPP loan is used for unauthorized purposes, the loan can be converted into a recourse liability. That is, the SBA may be able to come after the loan recipient or its shareholders, members, or partners for an unpaid loan if they use the PPP funds for unauthorized purposes.
2) Work Closely With Tax Professionals To Maximize The Forgivable Amount
The SBA, in its April 2, 2020 Interim Rule, announced that no more than 25% of the loan forgiveness amount can be attributable to non-payroll costs. While that requirement does not appear on the face of the CARES Act itself, the SBA and Treasury imposed this requirement to align the finite resources available to fund the PPP loan program with the overriding Congressional intent to keep workers paid and employed.
COVID-19 Construction & OSHA Update
Be Smart – Be Safe
The hammer comes down on construction to slow coronavirus spread among workers
By Sarah Parvini, Los Angeles Times
Amid concerns that construction workers are being exposed to coronavirus, Los Angeles Mayor Eric Garcetti announced new guidelines that will require all construction sites to create a “COVID-19 exposure control plan.” Protocols should include symptom checks, physical distancing, hygiene and decontamination, Garcetti said. READ MORE
RELATED NEWS:
“Due to the impact on workplace conditions caused by limited supplies of N95 FFRs, employers should reassess their engineering controls, work practices and administrative controls to identify any changes they can make to decrease the need for N95 respirators. If respiratory protection must be used, employers may consider use of alternative classes of respirators that provide equal or greater protection compared to an N95 FFR, such as National Institute for Occupational Safety and Health (NIOSH)-approved, non-disposable, elastomeric respirators or powered, air-purifying respirators. When these alternatives are not available, or where their use creates additional safety or health hazards, employers may consider the extended use or reuse of N95 FFRs, or use of N95 FFRs that were approved but have since passed the manufacturer’s recommended shelf life, under specified conditions.” [From FED OSHA]
https://www.osha.gov/news/newsreleases/national/04032020
Also — Cal/OSHA has published this strategy guidance regarding respirator shortages:
https://www.dir.ca.gov/dosh/coronavirus/Cal-OSHA-Guidance-for-respirator-shortages.pdf
Among other points: “Title 8 CCR Section 3380 permits employee-provided PPE as long as the employer ensures the PPE complies with Cal/OSHA standards and is properly maintained. Employers should not prohibit employee-provided PPE in compliance with Cal/OSHA standards when the employer is unable to provide it. Disciplining an employee for choosing to bring compliant PPE to work could subject the employer to claims of retaliation claims under Sections 1102.5 and 6310 through 6312 of the Labor Code.”
COVID-19 Tax / Jobs Update
Be Smart – Be Safe
Dear CSA Members,
Effective April 3, 2020
- California Loan Guarantee — Federal government offering first-come, first-serve loans of up to $10 million for small employers + Governor Newsom announces $50 million in loan guarantees for small businesses that may not be eligible for federal relief
- Job Openings in Critical Industries — Governor joins Bitwise Industries in announcing OnwardCa.org, a platform connecting COVID-19 displaced workers with over 70,000 job opportunities in critical industries
- Tax Filing Extension — The executive order allows the California Department of Tax and Fee Administration (CDTFA) to offer a 90-day extension for tax returns and tax payments for all businesses filing a return for less than $1 million in taxes. That means small businesses will have until the end of July to file their first-quarter returns.
- Tax Relief — California is also allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months.
Click here for more info.