COVID-19 Insights

Government mandated work-from-home orders have created a remote workforce, creating a host of complex state and local tax issues for both employers and their employees. Even as these orders expire, a common trend among employers is to implement flexible, long-term (and in some cases permanent) work-from-home arrangements.

The Michigan State Medical Society released an update by Liam Healy discussing the COBRA subsidy included in the latest round of COVID-19 relief.

As we recently reported, the temporary increase of the “debt ceiling” for small business debtors under Subchapter V of the Bankruptcy Code from $2,725,625 to $7,500,000 was set to “sunset” or expire on March 31, 2021. That same day, however, President Biden signed the “COVID-19 Bankruptcy Relief Extension Act” into law extending this and other critical bankruptcy relief provisions established last year under the CARES Act.

Health Care attorney, Daniel Schulte, discusses liabilities related to vaccination requirements in the latest issue of The Journal of The Michigan Dental Association (March 2021).

In February 2020, Congress established a new subchapter of Chapter 11 of the Bankruptcy Code aimed at easing the burden and costs of reorganization for small businesses. This new Subchapter V, enacted under the Small Business Reorganization Act of 2019 (SBRA), significantly streamlined the ordinary Chapter 11 process for certain “small business debtors.” 

The COVID-19 pandemic continues to demonstrate the importance and effectiveness of telemedicine as a means of providing patients with access to safe and quality medical care through the use of technology.

Health Care attorney, Daniel Schulte, addresses questions related to the COVID vaccine in the latest issue of The Journal of The Michigan Dental Association (February 2021).

Labor and Employment attorney Olivia Hankinson recently presented on the legal side of the COVID-19 vaccine. The webinar was hosted by Corp! Magazine and can be viewed HERE.

As many industries continue to struggle due to the ongoing pandemic, and invoices remain unpaid, it is more important than ever for businesses to understand their setoff and recoupment rights. These rights can be critical to obtaining repayment of a debt when dealing with a distressed business.

The recently enacted Consolidated Appropriations Act amends certain provisions of the U.S. Bankruptcy Code that will provide additional relief and protections for small businesses and individuals that have been impacted by the COVID-19 pandemic, as well as landlords and suppliers. Most of these amendments, however, are temporary and will expire after either one or two years unless extended.

The SBA announced that it will re-open the Paycheck Protection Program (PPP) loan portal to all eligible lenders this coming Tuesday, January 19, 2021, for a second round PPP loan applications.

The Consolidated Appropriations Act of 2021 was signed into law on December 27, 2020. The Act contains multiple provisions relating to employer sponsored employee benefit plans. The Act provides an employer the ability to avoid plan termination resulting from workforce reduction and to provide flexibility and expanded tax benefits to employee participants during the pandemic period.

With the COVID-19 vaccine anticipated to become available to the general public in 2021, many Michigan employers are questioning how they should proceed with requiring vaccinations.

The Consolidated Appropriations Act of 2021 (the Act) was signed into law on December 27, 2020. Among its many extenders, the Act provides employers the option to continue paid leave through March 31, 2021 and receive a tax credit for amounts paid.

Labor and Employment attorney Olivia Hankinson will be presenting a webinar on Thursday, January 21, 2021 from noon-1:00 PM EDT, hosted by Corp! Magazine, regarding the potential impact of the COVID-19 vaccine on the workplace.  

Health Care attorney, Daniel Schulte, answers questions related to the definition of "health care provider" as it relates to the Families First Coronavirus Response Act in the latest issue of The Journal of The Michigan Dental Association (December 2020). Question: One of my employees who is not directly involved in patient care (she does billing, and other office work for my practice) is very upset with me. She claims that she had a situation months ago that would have qualified her for paid leave, and now that the definition of "health care provider" has changed under the Families First Coronavirus Response Act ("FFCRA") she says I owe her back pay. Is this true? She also claims that I should have brought this to her attention and to others who are now eligible for this paid leave. Did I have to amend the notice I have in my office when the definition of "health care provider" changed?

Labor and Employment attorney Olivia Hankinson discusses the benefits of diversity and inclusion in the workplace, and how to maintain that progress as many companies continue to work remotely, in the latest issue of Corp! Magazine.

The Michigan Economic Development Corporation (MEDC) has announced that it is accepting applications for the Pure Michigan Small Business Relief Initiative.

Health Care attorney, Daniel Schulte, discusses vendor contracts and changes to contractual obligations in light of the pandemic for the latest issue of The Journal of The Michigan Dental Association (October 2020). Recently the MDA has received several questions regarding vendor contracts, including contracts for supplies, technology, and other products and services, as well and employment and independent contractor agreements, buy-in and buy-out arrangements, etc. The questions all note that at one time the contract made financial sense, but due to the pandemic they no longer do. Members are seeking advice whether it is possible to change contractual obligations due to this unexpected change in circumstances.

Kerr Russell, as of the date of this publication, is informing clients and friends of the firm that they are legally obligated to continue to comply with applicable COVID-19 workplace safety standards and valid state and local public health department orders, notwithstanding the Michigan Supreme Court’s opinion of October 2, 2020 invalidating the Governor’s COVID-19 Executive Orders. 

The U.S. Department of Labor and U.S. Department of Treasury issued joint guidance extending certain COBRA election, premium payment and appeal deadlines during the COVID-19 outbreak.

As clinical trials for a COVID-19 vaccine progress, many employers are asking whether they will be able to require their employees to be vaccinated as a condition of employment once a vaccine becomes available.

Kerr Russell attorney Michael "Max" Sneyd was recently featured on OESA's podcast, Automotive Insiders. Listen as Max shares how Force Majeure clauses have been applied to COVID-19 and the way future clauses will be drafted.

Health Care attorney, Daniel Schulte, answers questions related to the Families First Coronavirus Response Act. The Q&A can be found in the Journal of The Michigan Dental Association (August 2020) Question: My practice reopened a couple of weeks ago. The number of patients we are seeing has steadily increased. I have an employee who refused my recall to work due to child care issues. I let this go at first because I could get by without her. However, I really need her to return to work. She is continuing to refuse and now tells me that federal law passed as a result of COVID-19 requires me to provide her with paid leave since the reason she cannot return is due to child care issues. Is this true?

Attorney Anna Valk answers questions alongside other area real estate experts in a Q&A for dbusiness Magazine (July-August 2020). Question: What is a Real Estate Transfer Tax Valuation Affidavit and why should I use it?

Health Care attorney, Daniel Schulte, answers questions related to fears arsing from returning to work amid the coronavirus crisis. The Q&A can be found in the Journal of The Michigan Dental Association (July 2020) Question: An employee is refusing to return to work. She tells us that she is afraid of COVID-19 infection and this fear is causing her to lose sleep and have anxiety and depression. Could her suspected history of anxiety and depression (heightened by the COVID-19 crisis) be deemed a disability under some law?

The COVID-19 pandemic's impact on our daily lives cannot be overstated. Its ability to spread is perhaps best exemplified in the setting of correctional facilities - where physical space comes at a premium. 

Numerous questions and concerns have been generated since the pandemic. Many have related to the calculation of time periods for plaintiffs to file claims and file actions with the courts and for defendants to respond in to complaints and civil actions. 

Given that the previous few months have been filled with quarantine, shelter in place, and stay at home orders, the desire to travel over the upcoming summer months has perhaps never been greater. 

On June 22, President Trump signed a Presidential Proclamation suspending the entry of some employment-based non-immigrants, effective June 24. Citing the need to protect the economic recovery of the United States in the wake of the COVID-19 pandemic, the Proclamation effectively bars U.S. Consulates from issuing H-1B/H-4, H-2B, some J-1, and L visas through December 31, 2020.

Kerr Russell bankruptcy attorney Jason Bank recently published an article in the Member Newsletter for the Detroit Chapter of Turnaround Management Association. He discusses the role of turnaround professionals as they help clients navigate the economic fallout and recovery in the wake of COVID-19.

Traditional retailers with significant real estate holdings have been battered by the COVID-19 crisis and consumer shift to online spending.  As a result, many retailers have sought refuge in the bankruptcy court.

Health Care attorney, Daniel Schulte, answers recent questions related to the coronavirus crisis. The Q&A can be found in the Journal of The Michigan Dental Association (June 2020) Question: I suspect that many of my employees are going to be hesitant to come back to work due to the fear of infection. If I ask an employee to return to work and he or she refuses, what can I do?

Health Care attorney, Daniel Schulte, answers questions related to the CARES Act. The Q&A can be found in the Journal of The Michigan Dental Association (May 2020) Question: Can you provide a summary of the tax law changes made in March that will help me offset the financial losses that I have mounting due to the COVID-19 crisis?

On June 1, 2020, Governor Whitmer issued Executive Order 2020-110 (“Order”). The Order is effective immediately with certain provisions effective on June 4 and June 8. The Order rescinds Executive Order 2020-92, the latest version of the stay safe, stay at home order.

On Thursday May 28, 2020, the House passed H.R. 7010 which would provide more flexibility to borrowers under the Paycheck Protection Loan Program. On Wednesday June 3, 2020, the bill also passed in the Senate and is now making its way to President Trump’s desk for signature. 

In case you missed it, here is another chance to watch a recent webinar on Employee Benefits Amid COVID-19, by Liam Healy hosted by Corp! Magazine.

Kerr Russell immigration attorney, Kate McCarroll recently published an article with the Michigan State Medical Society. She discussed the bipartisan group Senate bill (Healthcare Workforce Resilience Act), which is intended to strengthen the U.S. healthcare workforce and improve healthcare access during the COVID-19 crisis. 

On Friday, May 15, 2020, the SBA released the Paycheck Protection Program (PPP) Loan Forgiveness Application (the “Application”) and related instructions providing much needed guidance on several open issues. 

Kerr Russell attorneys hosted a webinar for the Southeastern Michigan Chapter of the National Electricians Association (NECA).  

Since the inception of the PPP loan program, all applicants have been required to certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Kerr Russell associate, Cody Attisha, participated in a panel discussion sponsored by the State Bar of Michigan Taxation Section. The webinar was on COVID-19 & How Associates Can Make the Most of Working from Home. 

On Thursday April 30, 2020, the IRS released Notice 2020-32, clarifying that no tax deduction is allowed for the payment of expenses resulting in loan forgiveness under the SBA Paycheck Protection Loan Program.

On Friday, May 1, 2020, Governor Whitmer signed Executive Order 2020-70 (“EO 2020-70”). This EO allows additional industries, including those in the construction industry, to resume work on May 7, 2020.

Kerr Russell attorney Olivia V. Hankinson will be presenting with Hylant and HAND Enterprise Solutions in this webinar hosted by the Detroit Chinese Business Association (DCBA). The webinar is scheduled for Thursday, May 7, 2020 at 1:30 PM EDT. Register HERE.

On March 27, 2020, President Trump signed into law, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

Over the last few weeks, Google alone has blocked an average of 18 million COVID-19-related malware and phishing emails every day. Ransomware attacks are on the rise.

On April 24, 2020, the president signed into law the fourth in a series of bills to address the public health and economic crisis caused by COVID-19. The Paycheck Protection Program and Health Care Enhancement Act (PPPHCE Act) provides additional funding for the recently exhausted CARES Act Paycheck Protection Program.

On April 24, 2020, Governor Whitmer issued Executive Order 2020-59 (“Order”). The Order is effective immediately with certain limited provisions effective on April 26. The Order continues through May 15, 2020 at 11:59 pm, unless modified. Executive Order 2020-60 was also issued and adds temporary safety measures for food-selling establishments and pharmacies

On Thursday April 23, 2020, the House passed H.R. 266, a $484 billion relief package that would replenish funds for the SBA Paycheck Protection Program.

OESA recently launched a new podcast, Automotive Insiders, and Kerr Russell attorney Jim DeLine was their second guest. Listen as Jim shares top lessons that can help today’s suppliers manage their resumption of production during and after this pandemic.

On Monday night, April 20, President Trump tweeted that he planned to sign an Executive Order temporarily suspending immigration into the United States. 

Last week, the SBA’s Paycheck Protection Program (“PPP”) reached its funding limit and stopped processing applications. While Congress is in the process of passing a new coronavirus aid package to help small businesses, there is a great deal of uncertainty over how many small businesses will be able to share in the additional funding.

Coronavirus disease (COVID-19) has created a public health emergency resulting in the enactment of several laws, Executive Orders, notices and guidance at the federal, state and local levels.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) offered $349 billion in funds to small businesses affected by COVID-19 and the economic slowdown through its Paycheck Protection Program (“PPP”).

On April 9, 2020, Governor Whitmer issued Executive Order 2020-42 (“Order”). The Order takes effect on that date at 11:59 pm and continues through April 30, 2020 at 11:59 pm, unless modified.

Title II, Section A of the CARES Act modifies and expands unemployment benefits available in 2020 to provide relief to individuals who are affected by the COVID-19 epidemic.

In an effort to provide updates reflective of the common questions we are answering, we have compiled additional FAQs and responses.

Kerr Russell attorney Olivia V. Hankinson will be presenting with Hylant in this webinar hosted by the Detroit Chinese Business Association (DCBA). The webinar is scheduled for Tuesday, April 7, 2020 at 1:30 PM EDT. Register HERE.

The US Department of Labor recently clarified that employees laid off or furloughed due to lack of work and “stay at home” orders are not entitled to receive paid leave benefits under the new Emergency Paid Leave Act or the Emergency Family Medical Leave Act Expansion.

On March 27, 2020, President Trump signed into law, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) expanding the SBA 7(a) loan program (the “Paycheck Protection Program”) by allowing eligible businesses to receive forgivable loans of up to $10,000,000 for a maximum term of 2 years.

On March 27, 2020, President Trump signed into law, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).  A summary of key business tax provisions follows.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The CARES Act provides critically needed stimulus and relief to businesses and individuals in the wake of the COVID-19 outbreak.

On March 27, 2020, Governor Whitmer issued Executive Order 2020-26 extending the filing and payment deadline for 2019 State of Michigan income taxes. The order contains additional relief.

As the COVID-19 pandemic forces businesses to close and causes economic distress, Congress is working to address the economic effects of COVID-19. Congress’ most recent response measure is a stimulus Bill known as the Coronavirus Aid, Recovery, and Economic Security (CARES) Act, which seeks to address the economic impacts of COVID-19. The Senate and the House passed a final version of the Bill, and on Friday, March 27, President Trump signed the bill into law.

Oakland, Washtenaw and Wayne Counties follow Governor Whitmer in issuing Emergency Orders requiring COVID-19 screenings. They also implement social distancing plans for essential business workers.

We have been receiving many immigration-related inquires in light of the COVID-19 pandemic and resulting impact to companies that employ foreign workers. Here, we have compiled the most common questions posed with our responses.

Kerr Russell attorneys and Qualified Staffing hosted a webinar discussing the impact of COVID-19 0n employers. The webinar, which can be heard HERE, focused on employment law policies directly relating to COVID-19.

The worsening, economic fallout from the COVID-19 crisis will only serve to exacerbate the plight of small businesses, many of which have been forced to suspend or curtail operations. Kerr Russell will provide periodic updates regarding programs and avenues to help small businesses and small business owners navigate the financial crisis.

On March 23, 2020, Governor Whitmer issued Executive Order 2020-21 (“Order”). The Order took effect March 24, at 12:01 am and continues through April 13, 2020 at 11:59 pm. It requires residents to stay in their homes other than for exempted activities. These exemptions include work under very limited circumstances.

Join us for an exclusive discussion regarding the impact of COVID-19 on employers. The webinar is Thursday, March 26, 2020 at 2:00 pm EDT.

The COVID-19 pandemic has significantly impacted the international movement of personnel, visa applications, and how immigration benefits are processed in the United States.

On March 18, 2020, Governor Gretchen Whitmer issued an Executive Order extending the deadline for Michigan residents to redeem real property forfeited to the county treasurer for unpaid real property taxes.

In an effort to offer COVID-19 relief, the IRS is providing an extension to the tax filing deadline. The new deadline is July 15, 2020. This is in addition to the extension to file and pay 2019 and estimated taxes.

As previously discussed, the federal Family and Medical Leave Act (FMLA) provides up to twelve weeks unpaid leave in a twelve-month period and the guarantee of continued employment following leave. However, FMLA does not provide paid leave and Michigan currently has no paid leave statute.

First tangible benefit issued to employees in Michigan. Michigan's Governor expands entitlement of employees to collect unemployment benefits by suspending the Voluntary Leave disqualification provisions of the Unemployment Act and extending the period of benefit coverage.

Kerr Russell is committed to its community, clients and people. As the world navigates through the impact of COVID-19 (coronavirus), we want to assure you that Kerr Russell is committed to supporting our community, clients and people as effectively as we have through every other crisis our Nation has encountered over our firm’s nearly 150-year history. Our firm is fully operational: We have made sure that our lawyers and staff are able to safely and effectively serve our clients’ needs and continue operations on an uninterrupted basis. Most of our people

As of March 17, 2020, Michigan has announced 54 presumptive positive cases of COVID-19. There are more than 30 test results pending, and almost 400 individuals are being monitored for assessment purposes.

There are a myriad of articles hitting news feeds this month dealing with privacy issues related to COVID-19.  Attorneys at Kerr Russell have addressed many of those questions – their articles are available here. 

The global impact of the COVID-19 pandemic has spread to the international movement of personnel, visa applications, and how immigration benefits are processed in the United States.  Below is a summary of some of these implications.

Affected Employers may qualify for certain benefits. On the morning of Saturday, March 14, 2020, the United States House of Representatives passed H.R. 6201: Families First Coronavirus Response Act, an emergency rescue package designed to respond to the economic impact of the coronavirus epidemic.

The U.S. Department of Labor on Friday, March 12, 2020 issued a guideline outlining the potential ways that states can administer their unemployment insurance programs to provide the greatest assistance to those Americans who have been affected by the COVID-19 outbreak.

The IRS is taking steps to respond to the COVID 19 virus. Additional steps and guidance are expected.

On March 13, 2020, Governor Gretchen Whitmer executed Executive Order 2020-5. The Executive Order prohibits all assemblages within the state of Michigan of more than 250 people in a single shared space beginning on Friday, March 13 at 5:00pm and ending on Sunday, April 5 at 5:00pm. A “single shared space” includes but is not limited to a “room, hall, cafeteria, auditorium, theater, or gallery.” A willful violation of the Executive Order constitutes a misdemeanor under Michigan law.

On March 10, 2020 the Michigan Department of Health and Human Services announced the first positive tests for coronavirus disease 2019 (COVID-19) in the State of Michigan. Unfortunately, due to the contagious nature of COVID-19, it is likely that the virus will spread to others within the State and begin to affect Michigan workplaces.

Can Coronavirus be a Force Majeure Event?