This employment law update is directed at our hospitality clients that have resident managers. We have become aware that there are several California employee-side attorneys that are soliciting resident managers by direct mailing marketing materials to hospitality properties. Their purpose is recruiting new plaintiffs for lawsuits against hotel operators for violation of wage and hour…
Continue reading…PPP Forgiveness
Maintain your full-time employees Paycheck Protection Program (PPP) loan recipients need to ensure that proceeds are used for allowable purposes specified in the CARES Act and comply with guidelines that maximize the potential for loan forgiveness. See below for variables to consider when determining the amount of forgiveness. If the average number of full-time employees…
Continue reading…PPP Loan Forgiveness
Question: Will my PPP Loan Forgiveness amount be reduced if an Employee declines my offer to rehire them? No. Both the SBA and Treasury intends to issue an interim final rule stating that if you offer to rehire a laid-off employee (for the same salary and number of hours), but they reject your offer, their…
Continue reading…SBA PPP Loan Notes
The Promissory Note is directly from the SBA, there is no room for negotiation regarding their terms. If you need the funds, it is a “take it or leave it” option. However, there are 10 things you should keep in mind before accepting their terms: Interest begins accruing from the Disbursement Date. Payments are deferred…
Continue reading…COVID-19 EPIDEMIC, Frequently Asked Questions
Question: Does insurance cover my losses? Potentially. Many policies have a pathogenic or virus exclusion that prevents coverage of COVID-19 losses. Potentially. Many policies have a pathogenic or virus exclusion that prevents coverage of COVID-19 losses. Question: What if I can’t meet my outstanding obligations? Contact your creditor before payment is due. Many banks, lenders,…
Continue reading…New Guidance – FFCRA Exemption
The Dept. of Labor has provided new guidance for those planning to apply for the FFCRA exemption: To elect for this small business exemption, you should document why your business with fewer than 50 employees meets the criteria set forth by the Department. This will be addressed in more detail in forthcoming regulations. You should…
Continue reading…COVID-19 Epidemic – How It Impacts You (Part 1)
Question: Can I temporarily close my business? Yes. This pandemic has forced many of us to make tough decisions. Temporarily closing may be the best financial option for many of us. If you choose to do so, review your franchise agreement. It may restrict you from doing so. Even so, many hotel chains recognize the…
Continue reading…COVID-19 Epidemic – How It Impacts You (Part 2)
Question: If I cease operations, what happens to my employees You have two options: (1) Layoff your employees or (2) Furlough your employees Laying Off Employees Going this route, you are essentially terminating your employees with the possibility of later reinstating them. Make sure to pay your employees for all hours worked and any vacation/paid-time…
Continue reading…COVID-19 and Hotel Operations
FAQ – GUEST ISSUES Question: Am I allowed to continue Operations in California? Answer: Yes. But you must reduce to minimum basic operations. Make sure you are up to date on government orders, which are changing daily. Q: Can I refuse to accommodate a guest who has Covid–19? A: Yes. California courts have cited…
Continue reading…Franchise Negotiations
Which Terms should you Negotiate? Term of the Agreement & Exit Windows Area of Protection Fees: Royalty and Marketing Property Improvement Plan Ownership Transfer Liquidated Damages Default Provisions NOTICE: Attorney advertising; Attorney licensed to practice law in California only; Not intended as legal advice; No attorney-client relationship created hereby.
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