News & Legal Updates Archive

The global coronavirus crisis is having a direct or indirect impact on employer’s retirement plans. In part two of this three part alert, we will explore how employees may gain access to their retirement assets to handle the current financial struggles.

As COVID-19 continues to disrupt businesses and the economy, parties to a myriad of contracts are wondering: are contractual obligations enforceable even though performance is difficult, impracticable, or nearly impossible?

Practical steps to address the reality of doing business and managing contractual relationships during the COVID-19 crisis.

As mandatory statewide stay-at-home orders are issued, states and businesses continue to struggle with what businesses and workers qualify as essential. In an effort to better assist states and businesses, CISA released an updated memo that includes new essential sectors and workers.

In light of the current economic climate brought on by the nation’s response to the COVID-19 outbreak, many parties may have found their potential transactions stalled or outright canceled. This situation has likely left many wondering whether or not their executed letter of intent (or “LOI”) can provide them with any protection, recourse or relief. 

As the coronavirus continues to spread across the country, the impact on the construction supply chain and workforce will almost certainly become greater in the weeks and months to come. As a result, contractors across the country will be evaluating the force majeure provisions of their contracts to determine whether they are entitled to an extension of time or increase in contract price from delays and other impacts related to the COVID-19 epidemic.

McDonald Hopkins attorneys consider the impact of today’s announcement.

Among other temporary revisions to unemployment assistance programs, the recently passed CARES Act includes provisions aimed at expanding the effectiveness of state “short-time compensation” programs, also known as “work share” programs.

On March 26, CMS issued a Memo to all CLIA State Survey Agency directors regarding CLIA guidance during the COVID-19 Public Health Emergency. The guidance took effect immediately. The memo and associated guidance are only applicable during the COVID-19 public health emergency and accredited labs must follow their accrediting organization requirements and applicable state laws, which may be more stringent than CLIA.

If you have already read 1,000 articles on COVID-19 issues for your Startup, and you are struggling to keep them straight, you are not alone. Each one-page summary that follows provides what your Startup needs to know today on each main issue to navigate the crisis. We are here to help.

Non-profit organizations are facing challenges similar to those being faced by for-profit businesses as a result of the coronavirus crisis. Fortunately, The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) signed into law on March 27, 2020 contains provisions that may be beneficial to your non-profit organization.

On March 16, 2020, the United States Food and Drug Administration issued updated guidance for clinical laboratories, commercial manufacturers, and Food and Drug Administration staff on its Policy for Diagnostic Tests for Coronavirus Disease-2019 during the Public Health Emergency.

The global coronavirus crisis is having a direct or indirect impact on employer’s retirement plans. In part one of this three part alert, we will address how an employer can stop or reduce its contributions to its retirement plans.

On March 27th, the DOL addressed for the first time employees that qualify as a “health care provider” for purposes of determining individuals whose advice to self-quarantine due to concerns related to COVID-19 can be relied upon as a qualifying reason for paid sick leave.

Inasmuch as the appeal of American capitalism derives from the strength and predictability of its institutions, the sanctity of contracts forms one of its pillars.  In principle and generally in practice, parties cannot disavow contractual obligations based on caprice or changed circumstances . . . except in bankruptcy.

The COVID-19 outbreak resulted in the passage of the Coronavirus Aid, Relief and Economic Security Act or “CARES Act,” which was signed by the President on March 27, 2020. While not as widely reported, the CARES Act amended the SBRA and the Bankruptcy Code in an important respect that should further facilitate reorganizations under the Bankruptcy Code for small businesses.  

On March 27, the Department of Labor issued additional guidance on the Emergency Paid Sick Leave (EPSL) provisions and the Emergency FMLA (EFMLA) requirements of the Families First Coronavirus Response Act (FFCRA). The new Guidance includes questions and answers that address many of the practical issues and concerns that employers have raised related to implementing the FFCRA on April 1. With over 40 additional questions, the guidance covers critical topics such as layoffs/furloughs and use of paid leave, documentation that employers may require for use of paid leave time, whether workers can take paid sick leave intermittently, and whether employers who closed before the effective date of the FFCRA must pay paid sick leave.

On February 4, 2020, the FDA issued a EUA for the Centers for Disease Control and Prevention’s (CDC) 2019-nCoV (RT)-PCR Diagnostic Panel for the presumptive qualitative detection of nucleic acid from the 2019-nCoV in upper and lower respiratory specimens. This EUA was re-issued in its entirety on March 15, 2020 to reflect a number of amendments including changes to the intended use and primer and probe materials.

As more and more governors move toward statewide shutdowns of non-essential businesses and services to decrease the spread of COVID-19, Governor Ron Desantis will not shut down the State of Florida.  The Governor continues to hold firm to this position despite the fact that 47 of Florida’s 67 counties have reported cases of COVID-19.  

On March 24, 2020, the Office for Civil Rights (OCR) at the Department of Health and Human Services issued guidance on when the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule permits covered entities to share protected health information (PHI) of an individual who is infected with or exposed to COVID-19 with law enforcement, first responders and public health authorities.

When Ohio Governor Mike DeWine signs House Bill 159 into law, as he is expected to do on March 27, 2020, Ohio’s public entities must quickly prepare for important measures that provide governments and their constituents relief from the COVID-19 epidemic. The bill was introduced in 2019 but was amended to serve as omnibus state legislation meant to respond to the coronavirus outbreak. We've prepared a list of items that should be of particular concern to public entities in Ohio.

The CARES Act is intended to provide relief to big and small business as well as individuals. As it relates to small businesses, the CARES Act provides substantial relief in the form of $350 billion for Small Business Administration (SBA) loan guarantees and subsidies and additional funding for SBA resources.

The CARES Act has provided some much-needed relief for larger businesses. Title IV of the CARES Act is titled “Economic Stabilization and Assistance to Severely Distressed Sectors of the United States Economy.” While the CARES Act focuses heavily on airlines and related industries impacted by COVID-19, numerous other industries are eligible for relief under the Act.

Governor DeWine signed HB 197 into law, which among other things, eliminates Ohio’s “20-day rule” under municipal income tax for employees working from home during the COVID-19 health emergency.

Florida Governor Ron DeSantis declared a state of emergency for the State of Florida on March 17. As a result, and as provided in the Coronavirus Preparedness and Response Supplemental Appropriations Act recently enacted, the U.S. Small Business Administration is offering low interest federal disaster loans to small business in the State of Florida impacted by COVID-19.

A California case from 1920 discussed legal issues that arose from a commercial contract for the sale of glycerine during the Spanish Influenza Pandemic of 1918.  Now 100 years later, the lessons from Citrus Soap Co. v. Peet Bros. Mfg. Co., 194 P. 715 (Cal. App. 2d Dist. 1920) are relevant to the legal issues faced by businesses today during the global coronavirus outbreak (COVID-19) and will help guide business decisions.

Necessity breeds innovation. While faced with a worldwide shortage of medical equipment and personal protective equipment (PPE), many business owners are implementing drastic changes to their operations to step up and help fill the gaps.

The legislation includes a payroll tax credit for payments made to employees or businesses forced to close or reduce operations due to government mandates or that have suffered a significant loss in revenues due to the coronavirus pandemic.

From the expansion of reimbursement for telemedicine services in various situations, to financial and reimbursement support for providers impacted by COVID-19, to further streamlining the process for laboratories to offer COVID-19 testing and assuring reimbursement for such testing, the CARES Act contains many provisions designed to support healthcare providers affected by the COVID-19 emergency.

A general overview and summary of the various issues related to the CARES Act, including forgiveness of CARES Act loans, recovery rebates, charitable deductions, and more.

The United States and the world are dealing with the worst pandemic in over a century. The illness and death associated with COVID-19 could exceed the suffering of the 1918 Spanish Flu. In response to this crisis, the U.S House and Senate have passed the most comprehensive (and expensive) recovery act in the history of the country. The Coronavirus Aid, Relief and Economic Security (CARES) Act will cost $2 trillion and is unprecedented in its scope. It will bring emergency relief for virtually all Americans. The House is expected to pass the Senate version on Friday, March 26 and then the president will sign it into law. 

Expanded unemployment benefits include a temporary pandemic unemployment assistance program for those not traditionally eligible for unemployment benefits, including self-employed, independent contractors, gig economy workers, and freelancers

For many employers, what has followed since March 18^th are questions and more questions about coverage, notice, use, and other basic compliance requirements of the FFCRA.  On March 24^th, the DOL issued a Q & A-style Guidance that answers some question, but leaves many more unanswered just a week before the FFCRA is to be effective.  

In order to alleviate some of economic distress faced by many small businesses as a result of the COVID-19 pandemic, the Florida Department of Economic Opportunity (FLDEO) approved a Small Business Emergency Bridge Loan program effective as of March 19, 2020. 

In an attempt to stop the rapid spread of COVID-19, several states, counties and cities have issued mandatory “shelter-in-place”/“stay-at-home” orders. The orders, issued by either the state’s governor or department of health, generally require all individuals to remain in their residences when possible and that all nonessential businesses cease operations.

On March 24, 2020, the Office of the Inspector General (OIG) released timely guidance to its previous Policy Statement dated March 17, 2020, regarding providers’ ability to reduce or waive cost-sharing expenses for federal health care program beneficiaries, as an exception for telehealth services provided during the coronavirus (COVID-19) outbreak. The OIG’s new guidance addresses a number of questions from healthcare providers seeking to clarify the scope of the cost-sharing waiver Policy Statement.

The Families First Coronavirus Response Act (FFCRA) requires covered employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020. The FFCRA also requires a poster to notify employees of their rights. That poster has now been issued by the DOL and is available on the DOL website.

Operating a successful business requires working capital and regular cash flow. When money is tight, business owners often consider alternative sources of funding. With the effects of the COVID-19 pandemic, many small businesses are encountering a slowdown, while attempting to do right by employees and hold out hope that things will return to business as usual quickly. These are unprecedented times, and it is important that business owners consider all of their options and the potential risk before committing to a funding path.

At 12:01 a.m. March 24, 2020, Michigan Executive Order 2020-21, known as the “Stay Home, Stay Safe” order went into effect, halting all non-essential on-site business operations in Michigan, other than those operations necessary to sustain or protect life or to conduct minimum basic operations, until at least April 13, 2020. Businesses must designate employees that meet those criteria, and must adopt social distancing practices and other mitigation measures to protect workers and patrons in the performance of that necessary in-person work.

On March 22, 2020, the Ohio Department of Health issued its Director’s "Stay at Home" Order which requires all Ohioans to stay in their homes to prevent further spread of COVID-19. The Order went into effect at 11:59 p.m. on March 23, 2020. However, the Order provides for certain exemptions to the general rule, including individuals that need to leave their residence to provide any services or perform any work related to “Essential Infrastructure.”

On March 24, 2020, Oakland County Executive David Coulter, in conjunction with Oakland County Health Division, issued Emergency Order (2020-5) For Control of Pandemic, requiring all open businesses and operations subject to Michigan Executive Order 2020-21 to implement the following screening procedures and social distancing measures, effective Wednesday, March 25, 2020.

The Treasury Department and the Internal Revenue Service issued an announcement (Notice 2020-18) extending the deadline for contributing to an IRA, Qualified Retirement Plans, Health Savings Accounts, and Archer MSAs. The extension was in response to the coronavirus crises and in line with the recent extension for federal tax filings and payments.

The negative affects caused by COVID-19 have forced small business owners to temporarily close without any clear indication on when they may open again. These closures have caused unprecedented revenue loss and economic instability. In an effort to mitigate the economic damage caused by COVID-19, several federal and state level financial relief programs have been activated to support small business owners. 

Ohio’s Bureau of Workers’ Compensation (BWC) system is the exclusive provider of workers’ compensation insurance in Ohio.  The BWC serves 249,000 public and private employers. Significantly, for employers the BWC has announced that employers’ insurance premium installment payments due for March, April, and May for the current policy year may be deferred until June 1, 2020.  

In Ohio, employees who are disabled due to the contraction of an occupational disease or are the dependents of an employee whose death is caused by an occupational disease are entitled to compensation under Ohio’s Workers’ Compensation system.  In light of the current pandemic, an issue of concern for employers in Ohio is whether an employee may have a workers’ compensation claim if the employees contracts COVID-19 in a work related setting.

On March 20, 2020, the Drug Enforcement Administration (DEA) posted guidance allowing DEA-registered practitioners to prescribe controlled substances remotely (e.g., through telehealth) during the COVID-19 national emergency period.

Late last week the Substance Abuse and Mental Health Services Administration (SAMHSA) issued guidance encouraging the use of telehealth for substance use disorder (SUD) patients during the COVID-19 pandemic national emergency period. 

On March 19, 2020, the Substance Abuse and Mental Health Services Administration (SAMHSA) issued guidance on disclosure of substance use disorder (SUD) information during the COVID-19 pandemic national emergency period. 

States and the federal government are requesting that employers allow employees to telecommute. Some states may even mandate telework in the wake of the coronavirus (COVID-19) outbreak.

Illinois Governor JB Pritzker has issued Executive Order 2020-10, widely known as a “shelter-in-place” order, which requires citizens of Illinois “to stay at home or at their place of residence except as allowed in this Executive Order” through the remainder of the Gubernatorial Disaster Proclamation, which currently extends through April 7, 2020. The executive order creates exceptions to the stay at home requirement which generally fall into three categories: essential activities, essential government functions, and to operate essential businesses and operations.