AM I NEXT? WHY ARE YOU APPLAUDING THE CORONAVIRUS STIMULUS?

I am seeing numerous employers and employees cheering the proposed coronavirus stimulus legislation that appears to pay furloughed employees their entire salaries for a period of up to four months, and with a maximum proposed limit of $1,100 per week. Other provisions apply to the unemployed and those independent contractors engaged in the “gig” economy.

The idea is to help businesses to survive closures and the loss of revenue — and the continuing personnel costs. Unfortunately, many things in life have unintended consequences.

Think about it. Employers are being incentivized to furlough employees with all of the employment costs borne by the taxpayer. It sounds like a win-win for both employers and employees. Especially the larger corporations with large cash reserves.

What happened to the contract between the employer and the state in paying for state unemployment and disability premiums?

The problem is that many of those employees furloughed are not guaranteed a job when they return in four months or if the returning employee will receive the same position, salary, and benefits.

Bottom line…

Be careful what you wish! However, it might be a great opportunity to explore employment alternatives to create multiple independent revenue streams from a part-time business that can be run from your home.

THIS BILL IS NOT AGREED TO BY BOTH THE HOUSE AND SENATE AND SIGNED BY THE PRESIDENT.

AM I NEXT? EMPLOYEES BEWARE - SUSPENSION OF WARN ACT NOTICES

There should be little or no doubt that some California employers will take advantage of the current Chinese coronavirus pandemic to execute reductions in force that were previously contemplated or scheduled and seek to avoid any reputational damage by attributing such permanent layoffs to unforeseen circumstances. Many of those employees that will be laid off will not be rehired.

Therefore, you might wish to take this time to update your resume, declutter your life, or investigate ways in which you can use your abilities to create multiple independent revenue streams rather than engage in less productive activities.

The California governor has essentially waived the requirements for California’s implementation of the federal WARN (Worker Adjustment and Retraining Notification) Act by Executive Order so there might not be any forewarning of a mass layoff. The relevant section of the Executive Order is included here.

Be vigilant, be safe, and be well.

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EXECUTIVE ORDER N-31-20 (Excerpted)

WHEREAS on March 4, 2020, I proclaimed a State of Emergency to exist in California as a result of the threat of COVID-19; and

WHEREAS despite sustained efforts, COVID-19 continues to spread and is impacting nearly all sectors of California; and

WHEREAS rapidly progressing responses to the threat of COVID-19 cause business needs and circumstances to change in ways that were not reasonably foreseeable as recently as just weeks and days ago, necessitating rapid changes in workforce needs; and

WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this order would prevent, hinder, or delay appropriate actions to prevent and mitigate the effects of the COVID-19 pandemic.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes of the State of California, and in particular, Government Code sections 8567 and 8571, do hereby issue the following Order to become effective immediately:

IT IS HEREBY ORDERED THAT:

(2) Because of the need to prevent or mitigate the spread of COVID-19, employers have had to close rapidly without providing their employees the advance notice required under California law. Thus, for the period that began March 4, 2020, through the end of this emergency, Labor Code sections 1401 (a), 1402, and 1403 are hereby suspended for an employer that orders a mass layoff, relocation, or termination at a covered establishment on the condition that the employer:

(i) Gives the written notices specified in Labor Code section 1401 (a)-(b);

(ii) Consistent with United States Code, Title 29, section 2102(b) (3), gives as much notice as is practicable and, at the time notice is given, provides a brief statement of the basis for reducing the notification period;

(iii) Consistent with United States Code, Title 29, section 2102(b) (2) (A) and Code of Federal Regulations, Title 20, section 639.9(b), orders such a mass layoff, relocation, or termination that is caused by COVID-19-related "business circumstances that were not reasonably foreseeable as of the time that notice would have been required;" and

(iv) For written notice given after the date of this Executive Order, in addition to the other elements detailed in Labor Code section 1401 (b), such written notice must contain the following statement: "If you have lost your job or been laid off temporarily, you may be eligible for Unemployment Insurance (UI). More information on UI and other resources available for workers is available at labor.ca.gov /coronavirus2019 ." Unless otherwise specified, Labor Code section 1400 provides definitions for the terms used in this suspension.

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AM I NEXT? CORONAVIRUS (COVID-19)

There is no doubt that life has changed in America and elsewhere around the world with the personal, corporate, and government response to the global pandemic known as the Wuhan virus or coronavirus. Many organizations are in survival mode and laying off employees to conserve cash. Whether these employees will have a job when the pandemic crisis is over is unknown. This is what is known as a black swan event -- where nobody predicted the event or the extent of the damage it is doing. It appears that the disease, Covid-19 is highly infectious and primarily targets individuals over 60 or those with underlying diseases that compromise the heart, lungs, kidneys, liver, etc. Since no vaccine currently exists, the contagion is primarily contained by quarantine -- social distancing, staying home when sick, the avoidance of individuals, gatherings, and avoiding high traffic areas -- and hygiene, washing one's hands frequently, not touching the face, not touching "public surfaces" if possible.

But the primary lessons are:

(1) Do not panic. Panic causes additional problems and magnifies the situation at hand.

(2) Have an emergency fund available to carry you through the crisis and its aftermath.

(3) Have additional food, water, and other critical supplies to allow you to stay at home for at least two weeks, preferably one month. This can include freeze-dried emergency food and bottled water. An emergency kit is a necessity along with additional supplies of critical medicines. Any good "preppers" survival guide will be useful in helping you prepare.

(4) Have multiple independent streams of income, one or two of which can be managed electronically from home using your internet connection. (5) Be aware of all assistance plans from the government and your organization. We will be addressing each of these areas soon.

Best of luck. Be safe. This too shall pass.