Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (S.3548) Small Business Support The bill includes a $350 billion package, which would expand the existing SBA Section 7(a) loan program to provide loans of up to $10 million for qualifying small businesses, along with an opportunity for future loan forgiveness. Eligibility for these small business interruption (“SBI”) loans will expire on December 31, 2020, and is limited to businesses with less than 500 employees. The maximum loan amount will be four times the business's average monthly expenses (payroll, mortgage, rent, payments on debt obligations) for the preceding year, or $10 million, whichever is less. Loans would be backed by a 100% federal guarantee through December 31, 2020, at which time the guarantee percentage would revert to the standard Section 7(a) loan guarantee. A borrower who receives an SBI loan to pay employee salaries, payroll support, mortgage payments, and other debt obligations may not also receive an SBA economic injury disaster loan (EIDL) for the same purpose. Loan proceeds may be used for: Debt obligations incurred before March 1, 2020; Payroll support; Employee salaries; Mortgage payment; Rent; and Utilities. The bill also would seek to streamline processing by delegating authority to make and approve loans to qualified lenders (thus eliminating the need to go through SBA), waiving both fees for both borrowers and lenders, and limiting consideration only to whether the borrower was in operation on March 1, 2020, and had employees for whom the borrower paid salaries and payroll taxes. The bill provides that loans will be eligible for a complete payment deferment for up to one year, as well as forgiveness for the total amount borrowers spent on payroll costs between March 1 and June 30, 2020, and payments made between March 1 and June 30, 2020, on debt obligations incurred prior to March 1, 2020. However, the total amount of potential loan forgiveness will be reduced proportionately to any reduction in the borrower's number of employees, and a reduction would also apply if employees' salaries are reduced by more than 25%. Status The vote failed 49-46 today and they require 60 affirmative votes for it to pass. There are aspects of the bill which are more controversial (e.g. corporate bail outs, federal student loan forgiveness, healthcare support), however some of the sticking points related to small businesses include the expansion of the SBI loan provision to include businesses with more than 500 employees and a fear that the $350 billion would not be sufficient to meet demand for small businesses.

SBA Loans for Small Businesses Impacted by Coronavirus (COVID-19) Economic Injury Disaster Loans The Small Business Administration (“SBA”) provides low interest Economic Injury Disaster Loans up to $2 million to help small businesses recover from declared disasters, including coronavirus (COVID-19). Many states have received an Economic Injury Disaster Loan declaration including New York, New Jersey, Connecticut, and Pennsylvania. Small businesses in these states are eligible for SBA disaster loans. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. These loans are offered with long-term repayments up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. How to Qualify: Economic Injury: Businesses will need to show they have suffered an economic injury as a result of the coronavirus (COVID-19) or related events. Supporting documentation: Business owners will need to supply required supporting documentation that could include the business’s most recent tax returns, a personal financial statement and a schedule of liabilities that lists all of the company’s current debts. Credit History: Applicants must have a credit history acceptable to SBA. Repayment: Applicants must show the ability to repay all loans. Collateral: Collateral is required for all Economic Injury Disaster Loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires businesses to pledge what is available. Access to Capital Programs Standard 7(a) Program Offers loan amounts up to $5,000,000. The uses of proceeds include: working capital; expansion/renovation; new construction; purchase of land or buildings; purchase of equipment, fixtures; lease-hold improvements; refinancing debt for compelling reasons; seasonal line of credit; inventory; or starting a business. This program will continue to be available through banks and no changes are expected for their underwriting once the pending CARES Act is enacted. Express Loan Program The express loan program provides smaller loans up to $350,000 for no more than 7 years with an option to revolve. There is a turnaround time of 36 hours for approval or denial of a completed application. The uses of proceeds are the same as the standard 7(a) loan. How to Qualify: Qualification is based on the lender’s unique eligibility requirements. Generally, eligibility is based on what a business does to receive its income, its ownership, and where the business operates. Normally, businesses must meet size standards (which varies based on industry/business type), be able to repay, and have a sound business purpose. Owners with at least 20 percent ownership must offer a personal guarantee. Exporting Assistance Export Assistance The SBA provides export loans to help small businesses achieve sales through exports and can help these businesses respond to challenges associated with trade, such as coronavirus (COVID-19). The loans are available to small businesses that export directly overseas, or those that export indirectly by selling to a customer that then exports their products. Export Express This program allows express access to capital for businesses that need financing up to $500,000. Businesses can apply for a line of credit or term note prior to finalizing an export sale or while pursuing opportunities overseas, such as identifying a new overseas customer should an export sale be lost due to coronavirus (COVID-19). Export Working Capital This program enables small businesses to fulfill export orders and finance international sales by providing revolving lines of credit or transaction-based financing of up to $5 million. Businesses could use a loan to obtain or retain overseas customers by offering attractive payment terms. How to Qualify: Applicants must have been in business for at least one year, must be entering or expanding in an existing foreign market and must not be financing offshore operations. Applicants must provide a detailed export business plan predicting first-year export sales and describing how the loan proceeds will be used. The one-year-in-business requirement can be waived if the business’s key personnel have demonstrated export expertise and previous successful business experience.

NJEDA just announced a modest loan and grant program for NJ small businesses and investors impacted by COVID-19. Among other programs, qualifying small businesses with revenue under $5mm could receive $100K low-interest loans (actually interest free for first 5 years) depending on the nature of detrimental impacts from the pandemic. The programs also provide guarantees to certain investors and modest grants to small businesses per full-time equivalent employee ($1,000-$5,000 grants). Who should care? If you are a small business with $5 million or less in revenue and you have been impacted by the pandemic, please take a minute to read the FAQs below. If you are an investor that made an investment on or after March 9, 2020, please also take a minute to read the FAQs below. FAQs: https://faq.business.nj.gov/en/collections/2198378-covid-19-novel-coronavirus-information-for-new-jersey-businesses OlenderFeldman We are monitoring the evolution of these programs and establishing communications with authorities to understand the actual mechanics of the process. If you have any questions or need assistance, please feel free to give one of us a call.

Background On March 27, 2020, President Trump signed the "Coronavirus Aid, Relief, and Economic Security Act" (CARES ACT). The law includes a lending program for small business and targeted relief for hard-hit industries impacted by the COVID-19 national emergency. A summary of the legislation follows. Summary The law includes a $350 billion package that would expand the existing business loan program under Section 7(a) of the Small Business Act (“SBA”) to provide loans of up to $10 million to qualifying small businesses that submit applications during the period February 15, 2020 through June 30, 2020 (the “Covered Period”). In short, the law took the existing infrastructure under the current business loan program and repurposed it to get money into the hands of small business owners expeditiously to cover payroll and certain other overhead costs. Eligibility is limited to the following: Businesses, including 501(c)(3) organizations, 501(c)(19) veterans organizations, and tribal business concerns, that were in operation as of February 15, 2020 and that have less than 500 employees (consisting of both full-time and part-time employees, and those employed on other bases), or, if applicable, meet the size standard established by the SBA for the industry in which the entity operates. Sole proprietorships and owner-operated businesses, independent contractors, and self-employed individuals, subject to such individuals producing additional documentation. Business that have already laid off or furloughed employees remain eligible so long as they rehire all of such employees and use the loan for fixed debt as set forth below. The maximum loan amount is the lesser of: 5 times the average monthly “payroll costs” for the one-year period prior to the loan origination date; or $10 million. The “payroll costs”, as provided above, include: Compensation to employees, such as salary, wage, commissions, cash, etc.; Paid leave; Severance payments; Payment for group health benefits, including insurance premiums; Retirement benefits; State and local taxes assessed on the compensation of employees; and Compensation to sole proprietors or independent contractors (including commission-based compensation). The payroll costs do not include: Any portion of an individual salary that exceeds $100,000 on an annual basis, Payroll taxes, Compensation to employees whose principal place of residence is outside of the U.S., or Qualified sick leave or family medical leave for which a credit is allowed under the Coronavirus Relief Act of March 18, 2020. The standard fees and any personal guarantee requirement normally imposed on borrowers under Section 7 of the SBA are waived. Nonetheless, the law requires a processing fee payable to lender within 5 days of loan disbursement, based on the loan’s size. For loans under $350,000, the fee will be 5%, between $350,000 and $2,000,000, the fee will be 3%, and greater than $2,000,000, the fee will be 1%. These loans have a maximum maturity of 10 years and an interest rate that will not exceed 4%. Business owners who want to see if they qualify for this loan should begin the process by contacting their bank. The law delegates loan issuance authority to lenders authorized to make loans under the SBA’s current business loan program (each a “Preferred Lender”). The Treasury Secretary retains the power to extend such Preferred Lender authority to other private sector lenders. The law allocates $17 billion of the loan package to cover six months of payments for payroll and interest for existing SBA 7(a) borrowers, providing relief on existing obligations. The federal government will provide a 100% guarantee on these loans through December 31, 2020, at which time it defaults to the standard Section 7(a) SBA guarantee of 75% for loans exceeding $150,000 and 85% for loans equal to or less than $150,000. Businesses may use the loan proceeds for: Payroll support (including paid sick or medical leave); Employee salaries; Mortgage, rent and utility payments; Insurance premiums; and Other debt obligations incurred prior to the Covered Period. Borrowers of such loans may seek a payment deferment of 6 months up to a full year. Borrowers are eligible for loan forgiveness (not to exceed the principal of the loan) equal to the amount the borrower spends during the 8-week period, plus interest, following the loan origination date on: Payroll costs (as defined above) for workers making less than $100,000; Interest paid on mortgages; Rent; and Utility payments. To seek forgiveness, a borrower must submit to the lender an application that includes documentation verifying the number of employees on payroll, applicable pay rates, and cancelled checks showing any mortgage, rent, or utility payments. However, the amount that qualifies for forgiveness will be reduced in proportion to: Any reduction in the borrower’s workforce during the Covered Period by comparison to the prior year, and/or Any reduction in the salary or wages during the Covered Period that is excess of 25% of the salary or wages in the most recent full quarter for an employee who did not receive any single payment during 2019 that would be annualized out at $100,000. The borrower may avoid this reduction by rehiring the aforementioned employees and/or increasing employees’ compensation within an allotted time period. The limit for SBA 7(a) Express Loans is raised from $350,000 to $1 million through December 31, 2020. The existing Interim Final Rule titled: Express Loans, Affiliation Standards is rescinded on date of enactment. This rule detrimentally impacted rural, agricultural focused members as well as members that relied on agents. The law authorizes $265 million for SBA’s Entrepreneurial Development Programs. The law authorizes $10 billion for additional Emergency Injury Disaster Loans (EIDLs) under SBA 7(b) to be disbursed directly by SBA to those businesses that do not currently qualify for EIDLs. If a borrower applies for EIDL, they cannot apply for this loan due to concerns about double-dipping. These new EIDLs also include an option for a $10,000 cash advance within three days of application that does not have to be paid back even if the borrower’s application is subsequently rejected. SBA Loan 7(a) and 7(b) – Qualifying Criteria Note that it is possible to apply for both 7(a) and 7(b) loans, provided that there is no overlap in in use of funds. SBA 7(a) Loans Status: In effect – Signed by President Trump March 27, 2020 Originating institution: FDIC Insured financial institution (e.g. your bank) Lending criteria: Paycheck protection loans based on criteria above. Other 7(a) loans are based on financial wherewithal and typical qualifying criteria. Application process: Completion of loan application through your bank Funding once approved: Expedited - may be as short as 24 hours SBA 7(b) Loans - EIDL Status: In effect – Funding Expanded by CARES ACT Originating institution: Small Business Administration (e.g. not your bank) Lending criteria: Direct economic injury from Covid-19. Detailed hardship information and financials required to be submitted. Application process: Online https://disasterloan.sba.gov/ela/ or via paper forms. Funding once approved: Approval process is not expedited. Timing unknown.

As a result of the COVID-19 pandemic, commercial landlords and tenants are now faced with difficult decisions regarding their ongoing relationship. Landlords and tenants alike must revisit their leases and scrutinize each clause to determine their respective obligations. Ultimately, landlords and tenants should work together to find common ground regarding relaxation of lease provisions addressing rental default and timing of payment obligations. Dialogue now will ultimately prove more useful than the termination of tenancies and resulting litigation. Both New Jersey and New York courts have effectively halted any landlord eviction actions against tenants in the short term. Although New Jersey has instituted a moratorium on only residential evictions and foreclosures, on March 27, 2020, Chief Justice Rabner suspended all landlord/tenant calendars through April 26, 2020. The suspension of the landlord/tenant calendars makes it impossible for any commercial landlord to evict a tenant currently in default. Further, in light of the Federal Government’s edict yesterday to extend the “social distancing” guidelines through April 30, 2020, it is safe to assume that the suspension of the landlord/tenant calendars will be extended in New Jersey. New York has expressly halted both commercial and residential eviction proceedings until further notice. In addition, Governor Cuomo has instituted a moratorium on both residential and commercial tenancy evictions. NYS Exec. Order No. 2028 (March 22, 2020) states that “There shall be no enforcement of either an eviction of any tenant residential or commercial, or a foreclosure of any residential or commercial property for a period of ninety days.” Despite a warning from the New York City government expressly stating that tenants are not excused from paying rent, landlords will be left with no enforcement mechanism because landlords will not be able to file an action until June 22, 2020 at the earliest. Once again, it is safe to assume that this timeline will be extended. The unavailability of judicial remedies should incent the parties to a commercial lease to find another solution. It goes without saying that both commercial landlords and tenants would prefer to avoid costly eviction proceedings. Most landlords have had experience with struggling tenants and have found ways to maintain the relationship by modifying lease terms. Some potential modifications include (a) reduction of the monthly rental obligation; (b) drawing against the security deposit which the tenant can replenish at a later date; or (c) forbearance of payments to be satisfied in later months through increased rent or a single balloon payment at the lease’s termination. A commercial lease should be modified to achieve the primary objective of preserving the tenancy, especially in the face of these unprecedented times. If you are seeking to modify your lease terms, it is important to determine the impact that any modification may have on other provisions of the agreement, including monthly expenses over and above the base rent. Please contact either Rich Angowski (rangowski@olenderfeldman.com) or Jason Hawrylak (jhawrylak@olenderfeldman.com) to discuss your immediate needs.

The following guidance is being provided by OlenderFeldman LLP based upon the Small Business Exemption to the Families First Coronavirus Response Act (“FFCRA”), with official updated guidance provided by the U.S. Department of Labor (“DOL”). See https://www.dol.gov/agencies/whd/pandemic/ffcra-questions. This information is subject to change based upon revised guidance that may follow from the DOL and all clients should refer to the aforementioned website for updated information. On March 28, 2020, the DOL provided much-needed guidance to small businesses under 50 employees to exempt themselves (rather than needing apply to the DOL for relief) from the most financially burdensome provisions of the FFCRA allowing for extended paid leave of up to 12 weeks: (a) paid sick leave due to school or place of care closures or child care provider unavailability for COVID-19 related reasons or (b) expanded family and medical leave due to school or place of care closures or child care provider unavailability for COVID-19 related reasons when doing so would jeopardize the viability of the small business as a going concern. In order to exempt the business from compliance with these specific provisions, an authorized officer must determine that one of the conditions appearing below will exist if the business is forced to provide the leave and would jeopardize the viability of the small business as a going concern: The provision of paid sick leave or expanded family and medical leave would result in the small business’s expenses and financial obligations exceeding available business revenues and cause it to cease operating at a minimal capacity; OR The absence of the employee or employees requesting paid sick leave or expanded family and medical leave would entail a substantial risk to the financial health or operational capabilities of the small business because of their specialized skills, knowledge of the business, or responsibilities; OR There are not sufficient workers who are able, willing, and qualified, and who will be available at the time and place needed, to perform the labor or services provided by the employee or employees requesting paid sick leave or expanded family and medical leave, and these labor or services are needed for the small business to operate at a minimal capacity. Additionally, the above guidance suggests that the DOL does not currently intend to second guess the good faith business judgment of a small business as it weighs the financial impact of FFCRA compliance.

The Paycheck Protection Program offered by the SBA - to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis is now available. Click here for more information: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

Just like the Spanish Flu of 1918, the COVID-19 outbreak will come to an end. Governments across the globe have offered different timelines for a “return to normal,” but rest assured, it will happen. When it does, those landlords and tenants who collectively found a way to work together through the acute times of this crisis will be a step ahead of their respective competitors. Barring a complete paradigm shift, tenant “employers” will need office space for their employees and landlords will need those tenants to satisfy their debt obligations. Both landlords and tenants should look to a loan from the Small Business Administration (“SBA”) as a first step in maintaining their relationship. The CARES Act allocates nearly $350 billion to the Paycheck Protection Program (“PPP”). The PPP is designed to get cash into the hands of a suffering small business quickly, with less red tape and fewer guardrails than the SBA’s existing loan programs. The PPP specifically designates “rent” and “covered mortgage obligations” as allowable expenses under the program. The business that maintains its work force, and rental space, will be poised to take advantage of the opportunities that lie on the other side of “social distancing.” For a landlord, an SBA loan will allow it to satisfy its covered mortgage obligations and the necessary breathing room to amicably modify or relax a tenant’s rental obligations. Eligible landlords and tenants should take immediate steps to apply for a PPP loan. Unless a business is flush with limitless capital reserves, an easy to obtain loan with a maximum 4% interest rate and potential forgiveness is a “no brainer.” In fact, the CARES Act even modifies the SBA’s ordinary course requirements by eliminating pledges of collateral, prepayment penalties, personal guarantees, and borrower and lender fees. Perhaps most favorably, the requirement that a borrower certify that it could not secure credit elsewhere is also waived. In most instances, a tenant will avoid the need to relocate its business at all costs and a landlord cannot afford needless vacancies. PPP loans are the first step in maintaining the relationship. If you would like to apply for a PPP Loan, or need assistance with a commercial landlord/tenant relationship, please contact either Rich Angowski (rangowski@olenderfeldman.com) or Jason Hawrylak (jhawrylak@olenderfeldman.com).

Just like the Spanish Flu of 1918, the COVID-19 outbreak will come to an end. Governments across the globe have offered different timelines for a “return to normal,” but rest assured, it will happen. When it does, those landlords and tenants who collectively found a way to work together through the acute times of this crisis will be a step ahead of their respective competitors. Barring a complete paradigm shift, tenant “employers” will need office space for their employees and landlords will need those tenants to satisfy their debt obligations. Both landlords and tenants should look to a loan from the Small Business Administration (“SBA”) as a first step in maintaining their relationship. The CARES Act allocates nearly $350 billion to the Paycheck Protection Program (“PPP”). The PPP is designed to get cash into the hands of a suffering small business quickly, with less red tape and fewer guardrails than the SBA’s existing loan programs. The PPP specifically designates “rent” and “covered mortgage obligations” as allowable expenses under the program. The business that maintains its work force, and rental space, will be poised to take advantage of the opportunities that lie on the other side of “social distancing.” For a landlord, an SBA loan will allow it to satisfy its covered mortgage obligations and the necessary breathing room to amicably modify or relax a tenant’s rental obligations. Eligible landlords and tenants should take immediate steps to apply for a PPP loan. Unless a business is flush with limitless capital reserves, an easy to obtain loan with a maximum 4% interest rate and potential forgiveness is a “no brainer.” In fact, the CARES Act even modifies the SBA’s ordinary course requirements by eliminating pledges of collateral, prepayment penalties, personal guarantees, and borrower and lender fees. Perhaps most favorably, the requirement that a borrower certify that it could not secure credit elsewhere is also waived. In most instances, a tenant will avoid the need to relocate its business at all costs and a landlord cannot afford needless vacancies. PPP loans are the first step in maintaining the relationship. If you would like to apply for a PPP Loan, or need assistance with a commercial landlord/tenant relationship, please contact either Rich Angowski (rangowski@olenderfeldman.com) or Jason Hawrylak (jhawrylak@olenderfeldman.com).

With approximately 80% of the nation on some sort of lockdown or work restriction, working from home has become the new normal for many. As noted from my last posting, one result of this shift has been more data breaches, including increases of over 100% in many industries. There are numerous actions which all businesses should be taking (and should have been taking prior to the Coronavirus outbreak) to maintain appropriate data privacy and security policies and procedures – all of which would have made the rest of this post moot. However, for those companies which have not previously taken such action, or for those which just want a refresher, there are also some simple steps that all companies can and should take to minimize harm from data breaches apart from implementing comprehensive policies, procedures and training, including the following: Make sure all remote workers have your company’s security software loaded on all devices being used for remote work, and importantly, make sure all such security software is kept up to date. In that regard, you may need to require that your remote workers manually update all such software on a regular basis. Employ proper password protocol. If you are not using a professional password manager, you should assure that all passwords are at least 12 characters long and include a mix of numbers, symbols, capital and lowercase letters. However, while previous protocol suggested a random garbling of phrases that constantly changed, current best practices suggests not frequently changing passwords, but use passwords that are much longer (more than 12 characters) and encompasses a phrase that only has significance to the user (think “MySon’s1stHomeRunWasLastWeek!” or “MS’s1stHrWLW!” instead of “Mike123$”). Of course, passwords should never be shared except as appropriate with the company’s assigned administrator. Require that all home routers have encryption turned on. See https://www.consumer.ftc.gov/articles/0013-securing-your-wireless-network for more information. Provide all employees with trusted VPN access. Encourage use of approved and secure cloud services and avoid having work documents saved to the employee’s hard drive. Similarly, assure that all documents are constantly saved in the event there is a power outage, breach or computer/system crash – even if merely due to the temporary overload of Internet traffic. Make sure that once documents are saved to the cloud, proper back-up procedure is in place. Avoid the use of USB memory sticks. The US Department of Homeland Security has deemed use of memory sticks as risky due to the number of viruses and malware that have been transferred on such devices. With home computers/systems even more vulnerable than most office systems, the risk of using memory sticks is compounded. Require employees to physically protect their devices from small children who may accidentally hit the wrong buttons, or even spill a glass of milk on a laptop which cannot easily be replaced these days. To the extent possible, separate work and personal devices. Provide a quick lesson/refresher to all employees on the risks of phishing and business email compromise and what to look out for. Work on contingency plans in the event Internet services are interrupted for some or all of your workers. Plan, plan, plan. For more information or assistance, please visit www.olenderfeldman.com or contact Michael J. Feldman, Esq., at mfeldman@olenderfeldman.com or 908-964-2486. Please also visit https://www.olenderfeldman.com/blog/ for constantly updated and useful critical information on government action, legal changes, funding (loans, grants, etc.) opportunities a

The following guidance is being provided by OlenderFeldman LLP with respect to notice requirements under the Families First Coronavirus Response Act (“FFCRA”) and FFCRA application to furloughed employees, with official updated guidance provided by the U.S. Department of Labor (“DOL”). See https://www.dol.gov/agencies/whd/pandemic/ffcra-questions. This information is subject to change based upon revised guidance that may follow from the DOL and all clients should refer to the DOL’s website for updated information. Notice Requirements for All Covered Employers under FFCRA Today, April 1, 2020, is the deadline for all covered employers to post the DOL notice of FFCRA requirements in a “conspicuous place on its premises.” Those employers with employees teleworking can satisfy the notice requirement by e-mailing or direct mailing the notices to employees or publishing the notices on the company website. The required notice poster pursuant to the FFCRA is attached for your use and publication. Furloughed Employees Are NOT Entitled to FFCRA Leave Many of our clients are currently weighing the important issue of how to handle their workforce staffing levels at the moment, which involve a variety of considerations ranging from across-the-board salary reductions to furloughs and layoffs. Unlike layoffs, which involve termination of employment, furloughs are a company-initiated short-term leave of absence, where the affected individuals remain employees of the company. Depending upon the health care provider, furloughed workers may receive health care benefits while on their unpaid leave of absence. They can also receive unemployment insurance benefits while on furlough. While carrying healthcare costs for workers who are not performing work for the company may seem like an unnecessary cost for businesses struggling to stay afloat, the practical purpose behind furlough is to provide a level of comfort to employees that they will be brought back to work once the COVID-19 pandemic subsides while having health care support. Furloughs have the added advantage that when business improves, employers will not need to recruit, train and onboard new employees because the furloughed workers can pick up where they left off with little ramp up time. Many clients have been concerned (and factored into their decision making) that furloughed employees would still be entitled to paid leave under the FFCRA, whether caring for themselves, family members or children whose day care centers or schools closed as a result of the COVID-19 pandemic. The DOL has provided reliable guidance that furloughed workers will not be entitled to paid leave if an employer closes a worksite or furloughs employees due to a lack of work or government closure directives, regardless of whether that happens on or after April 1, 2020. Additionally, the DOL clarified that employees of businesses that close on or after April 1, 2020 are not entitled to paid sick leave or extended family medical leave, even if the employee requested leave prior to business closure. If you require additional assistance on staffing issues during the novel conditions created by COVID-19, please contact the firm’s Employment Practices Group via email or through the firm website.

Our local court systems have been unprecedently affected by COVID-19 just like other resident businesses. New Jersey Supreme Court Chief Justice Stuart Justice Rabner entered an order on March 27, 2020 that provides procedural and logistical guidance on the suspension of certain court proceedings in the New Jersey State courts. As of March 22, 2020, New York State courts temporarily suspended filings (both paper and electronic) in non-essential matters which includes the majority of business-related disputes. While the guidance provided is instructive for lawyers, from the perspective of businesses and their owners, the recent suspensions and closures of certain courts in New Jersey and New York pose yet another hurdle to timely resolution of all types of disputes. The court situation is so murky that clients and advisors have reached out simply to confirm if courts are open for business. While frustrating, the restrictions on court access, proceedings and trials may actually present an opportunity for businesses to consider alternative methods to dispute resolution. In fact, with guidance from counsel, business-to-business resolution of disputes should be the first consideration as business practicalities should dictate approach more than ever. Generally, experienced counsel can use the less formal platform to frame the core issues while ideally minimizing fees and without the restrictions of procedural rules and deadlines. Of course, regardless of forum or approach, evidence of claims should still be properly documented. If B-to-B efforts are not initially successful, you should consider the possibility of ADR (e.g., mediation or arbitration). While the court systems will have limited schedules and will undoubtedly experience growing pains while transitioning to virtual proceedings, ADR providers have more familiarity with remote facilitation and matters are not publicly available. That said, there are other considerations with ADR such as cost. The impacts of the COVID-19 will continue to reverberate through the economy and our businesses – whether it be in slow receivable payments, contract breaches, management disputes, or employment unrest. If you would like guidance on how to approach commercial disputes in light of COVID-19 or to review forum/dispute resolution clauses in governing contracts, please contact either Christian Jensen (cjensen@olenderfeldman.com) or Rich Angowski (rangowski@olenderfeldman.com).