Today President Trump signed in to law the Paycheck Protection Program Flexibility Act of 2020 (the “PPPFA”), which substantially modifies certain provisions of the CARES Act related to forgiveness of Paycheck Protection Program (“PPP”) loans for small businesses, as many recipients of the PPP funds come up on the end of their previously-determined 8-week measurement period for loan forgiveness.
We address issues, cases and matters of statutory and regulatory compliance of employment law that can impact a business' growth and profitability.
One of the little discussed provisions of the CARES Act are those added by House Democrats to curry favor with organized labor. The first is that borrowers who obtain loans under the Act must make a good faith certification that they will remain neutral in any union organizing effort for the term of the loan. The effect of this provision is to force neutrality upon borrowers under the CARES Act for the duration of their loans. This means that a borrower commits not to say or do anything to oppose a union’s organizing effort. Borrowers should be aware of this requirement which, in effect, abrogates some of their rights under the National Labor Relations Act.
Congress responded to the current COVID-19 pandemic crisis by passing the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, H.R. 748 (the “Act”) on March 27, 2020, and it has been signed into law.