The U.S. Department of Labor (“DOL”) and the Internal Revenue Service (“IRS”) have issued a Joint Rule to extend certain time frames for group health plans and other welfare and pension plans. Pursuant to the Rule, plans must disregard the period from March 1, 2020 until 60 days after the announced end of the National Emergency related to the COVID-19 outbreak (which is, at this time, an undetermined date). In the Rule, this period is referred to as the “Outbreak Period.”
Section 7(i) of the Fair Labor Standards Act (“FLSA” or “Act”) provides an exemption from the Act’s overtime requirement for certain commissioned employees employed by a retail or service establishment. To satisfy the FLSA’s “employed by a retail or service establishment” requirement, the employee must be employed by an establishment where 75% of the sales are to the ultimate customer. The U.S. Department of Labor (“DOL” or “Department”) has interpreted “retail or service establishment” as requiring the establishment to have a “retail concept.” Such an establishment typically “sells goods or services to the general public,” “serves the everyday needs of the community,” “is at the very end of the stream of distribution,” disposes its products and skills “in small quantities,” and “does not take part in the manufacturing process.”
The Small Business Administration (“SBA”) has released the Payment Protection Program (“PPP”) loan forgiveness application, which can be found HERE. The application and instructions confirm that if a borrower used at least 75% of the loan proceeds on eligible payroll costs, no more than 25% on eligible non-payroll costs, and maintained staffing and salary levels, the PPP loan may be forgiven in full. The application further confirms the forgiveness amount will be reduced correspondingly by a failure to follow these requirements.
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