SBA Issues Guidance for PPP Lenders on Required Consents for Change in Ownership of PPP Borrowers
On Friday, October 2, the U.S. Small Business Administration (SBA) issued guidance for lenders administering loans under the Paycheck Protection Program (PPP) regarding what involvement by the SBA (if any) is required when a PPP borrower undergoes a transaction resulting in a change in ownership. This guidance addresses several questions with which PPP borrowers and lenders have been struggling over the past several weeks and provides clarity around what the expectations are for when SBA consent is required and what . . . Read More
CCPA Regulations Approved: Companies Risk Penalties for Noncompliance
Effective immediately, the California Office of Administrative Law (OAL) approved final regulations for the California Consumer Privacy Act (CCPA) on August 14, 2020. The final text of the regulations is available here . The CCPA grants California consumers robust data privacy rights and control over their personal information. Companies that do business with California consumers now risk penalties for noncompliance. Further, on August 30, 2020, the California legislature passed Assembly Bill 1281 , extending the CCPA’s employee exemption and the CCPA’s business-to-business exemption by . . . Read More
OFCCP Audits Are Coming: 6 Tips to Help You Prepare
The Office of Federal Contract Compliance Programs (OFCCP) just released its FY 2020 lists of Supply & Service and Construction contractors the agency expects to audit (see FY 2020 CSAL Supply & Service and FY 2020 CSAL Construction ). With enforcement a primary goal of OFCCP, preparing for an audit is key. If your company is on the list, PilieroMazza’s Labor & Employment team suggests you follow these 6 tips to properly prepare for an OFCCP audit to avoid potential penalties and possible loss of your government contract. Also, join . . . Read More
Court Vacates Key Parts of DOL “Joint Employer” Rule Months After Implementing
On September 8, 2020, the Southern District of New York struck down a recent Department of Labor (DOL) final rule that changed the standard of joint employment under the Fair Labor Standards Act (FLSA). The court determined that the rule conflicted with the FLSA and that the DOL did not properly justify the new change in policy. This decision will expose more companies to potential liability under the FLSA and increase the number of businesses that qualify as joint employers, such as those who . . . Read More
New Minimum Wage Requirements for Government Contractors May Impact Price Adjustments
Effective January 1, 2021, the Executive Order (the Order) minimum wage rate that generally must be paid to workers performing work on or in connection with covered government contracts will increase to $10.95 per hour, while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $7.65 per hour. Each year, the Department of Labor (DOL) assesses the established minimum wage and, using determined methodology, announces an . . . Read More
FAR Council Issues New Interim Rule on Section 889 Prohibitions on Using Chinese Telecommunications and Video Surveillance Equipment
If you have not viewed PilieroMazza’s prior client alert and webinar on the implications of the new prohibition on the use of certain Chinese telecommunications and video surveillance equipment, we highly recommend you do so before reading this article as it will provide helpful background and information which we will not rehash in this article. You can find that content here and here , respectively. The FAR Council released a new interim rule , effective October 26, 2020, allowing federal contractors who already certified in . . . Read More
Certain SBA Loan Review Decisions Under Paycheck Protection Program Appealable
Millions of small businesses applied for and received loans under the Paycheck Protection Program (PPP), which was a temporary program established under the CARES Act enacted by Congress to provide relief to America’s small businesses due to the devastating effects of COVID-19. But some businesses were denied loans and others are seeking forgiveness, only to find that they were deemed ineligible for full or partial forgiveness. A new rule may provide small businesses with options to appeal these decisions. An . . . Read More
DOD Receives Section 889 Waiver from Director of National Intelligence
On August 12, 2020, Director of National Intelligence John Ratcliffe issued a memorandum to the Department of Defense (DOD) that waives DOD’s requirements under Section 889 of the National Defense Authorization Act for Fiscal Year 2019. The Federal Register published an interim rule on July 14, 2020, that implemented Section 889, which prohibits agencies from procuring telecommunications equipment and services from Huawei Technologies Company, Hangzhou Hikvision Digital Technology Company, Hytera Communications Company, Dahua Technology Company, and ZTE Corporation. The DOD originally released a . . . Read More
Prohibitions on Use of Some Chinese Telecommunications Equipment by Government Contractors Effective August 13, 2020
Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019—prohibiting government agencies and government contractors they work with from using certain covered telecommunications equipment or services from China—goes into effect on August 13, 2020. The FAR Council issued an interim rule implementing Section 889(a)(1)(B) by making a number of changes to 48 CFR Parts 1, 4, 13, 39, and 52. While the interim rule will be effective as of August 13, comments to the . . . Read More
SBA Issues More New Guidance on PPP Loan Forgiveness
In a new FAQ published on August 4, 2020, SBA clarified some additional points from the use of scanned documents to support the application to the forgiveness eligibility of costs incurred or paid during the chosen covered period. As always, PilieroMazza wants to bring this to the attention of all of our clients as we know many firms are currently preparing their forgiveness applications and these may be critical updates. General Loan Forgiveness If you are a sole proprietor/1099 or . . . Read More