Major Retailers Furlough Employees

Some of America’s most prominent publicly traded retailers announced that they would furlough bricks-and-mortar employees as the economy has frozen due to stay-at-home orders to stop the spread of the coronavirus.

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According to the United States Department of Labor report on weekly claims that was issued April 2, the advance figure for seasonally adjusted initial claims during the week ending March 28 was 6,648,000, which is an increase of 3,341,000 from the previous week’s level. In California, the state’s Employment Development Department reported 878,727 unemployment-insurance claims for the week ending March 28. Claims for the week ending March 21 were reported at 186,333. According to Dominica Anderson, partner and team lead for Fashion, Retail and Consumer Branded Products at law firm Duane Morris LLP, much uncertainty remains regarding the future of brands in the apparel industry.

“When you look at the financial impact, I’ve read that reports show some companies are self-reporting that they may take up to a 15 percent hit, others are speculating they will have an 85 percent reduction in profit. Those are pretty big swings,” she said. “In the near future, we’re going to see a larger number of the unemployment applicants from the fashion industry.”

To read the full article, visit the California Apparel News website.

Data Protection and Coronavirus: FAQs on the Approach of European Regulators During the COVID-19 Pandemic

By John Benjamin and Edward Pickard 

The spreading COVID-19 pandemic across Europe has meant that many of its data protection authorities have faced questions from organisations as to how they should meet their privacy obligations during this time.

The European Data Protection Board (EDPB) has now published its own guidance to ensure that a consistent approach is taken across Europe regarding privacy compliance during this period. However, this came after a number of national regulators published their own guidance that in some cases is slightly contradictory. Continue reading “Data Protection and Coronavirus: FAQs on the Approach of European Regulators During the COVID-19 Pandemic”

MOLISA’S Proposals for Handling Distressed Employment Arrangements – COVID-19 Guidance for Employers in Vietnam

Recent guidance from Vietnam’s labor authorities provide some welcome clarity about how employers can act in these unique times and simultaneously underline that normal labor laws still apply. Employers who act in breach of the law are at risk.

The Ministry of Labor, War Invalids and Social Affairs (“MOLISA”) has just released Official Letter No. 1064/LDTBXH-QHLDTL (“OL 1064”) dated 25 March 2020 to provide guidance on employment arrangements for enterprises affected by the impact of the Covid-19 pandemic.  As follow up, the Ho Chi Minh City Department of Labor, War Invalids and Social Affairs (“DOLISA”) issued Official Letter No. 9403/SLDTBXH-LD (“OL 9403”) dated 27 March 2020 to provided further guidance for enterprises located in Ho Chi Minh City.

To read the full text of this post by Duane Morris Vietnam partner Giles T. Cooper, please visit the Duane Morris Vietnam Blog.

Mexican Labor Laws and COVID-19

The crisis brought about by the COVID-19 pandemic has affected virtually every sector of the international economy including transnational companies with a large presence in Mexico.

Companies with employees in Mexico are subject to the Mexican Federal Labor Law (FLL), which provides in certain situations for the temporary suspension of employment relationships. This entails the possibility for the employee to refrain from providing their services, and consequently, the possibility of the employer to refrain from paying the respective salary.

To read the full text of this Alert, which contains a summary of important provisions of Mexican labor law that should be considered in light of the current situation caused by the COVID-19 pandemic, please visit the firm website.

The Unprecedented Employer Subsidies This Week To Avoid Layoffs

(This is the third in a series on the impacts of the coronavirus on employment and the workplace. Read the first and second part.)

The federal stimulus, approved last Friday, includes unprecedented financial incentives for employers to retain employees or bring back employees laid off after March 1, 2020. Whether they succeed or not remains to be seen. However, these incentives go well beyond the layoff aversion strategies of previous Stimulus efforts dating back to World War II.

To read the full text of this article by Duane Morris attorney Michael Bernick, with comments from  Nanette Heide and Meagan Garland, please visit the firm website.

CARES Act Offers Employers Aid with Some Strings Attached

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) is now law, having been enacted the same day Congress passed the bill. The Act is unprecedented in many ways, including the protections it affords various nonemployee segments of the workforce, such as gig-economy workers, sole proprietors, independent contractors and the self-employed, who have never had many of the protections afforded employees. Equally significant is the relief immediately available to employers to incentivize employee retention, but they must act quickly and decisively. For larger employers, the employee-retention incentives are welcomed relief, but they should be aware of the onerous obligations and stringent restrictions attached.

To read the full text of this Duane Morris Alert, please visit the firm website.

Historic CARES Act Puts $2 Trillion Toward COVID-19 Response Efforts

Enacted on March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) is the largest economic stimulus package in American history, providing $2 trillion in essential financial, medical and economic assistance to industries, businesses and individuals affected by this global health and financial crisis. Since the early stages, the Duane Morris COVID-19 Strategy Team has been closely monitoring developments and advising clients on the complex legal issues and far-reaching implications of the pandemic. Our attorneys have reviewed the key provisions of the CARES Act and have summarized the significant benefits, resources and opportunities that may be available to you.

To read the full text of this Duane Morris Alert, please visit the firm website.

CARES Act Changes to Retirement Plans and Executive Compensation

On March 27, 2020, the House of Representatives passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The Senate passed the Act on March 25, 2020, and the president is expected to sign the Act into law shortly. The Act is the largest stimulus bill in American history and contains a number of provisions that affect an employer’s retirement plans and executive compensation arrangements.

To read the full text of this Duane Morris Alert summarizing these provisions, please visit the firm website.

What Philly Employment Lawyers Are Telling Their ‘Terrified Clients’ About the Coronavirus

Three weeks ago, some of the most common questions employment lawyer Jonathan Segal’s clients asked about COVID-19 included whether they could allow employees to work from home or travel for business.

With the virus quickly spreading across the U.S., the Duane Morris partner said those same business executives are now asking what to do if an employee cannot work from home or how to handle cutting jobs, hours or salaries.

To read more of Mr. Segal’s remarks from an excerpt of this article, please visit the Duane Morris website.

High-Demand Workers See Benefits Boost Amid Pandemic

President Donald Trump signed a $2 trillion coronavirus relief bill Friday, but some employers stepped up and started enacting or strengthening policies meant to help protect and provide for their workers before the federal government got in gear.

Temporary pay increases and expanded paid leave policies are among some of the benefits employers started offering as the nation grapples with the spread of COVID-19, the disease caused by the novel coronavirus that emerged at the end of 2019. […]

W. Michael Gradisek, who chairs the employee benefits and executive compensation practice at Duane Morris LLP, said that he has been fielding a lot of questions about continuing benefits to furloughed employees.

Companies are trying to do the right thing for their workers, Gradisek said, but while that might seem simple, it can actually be quite complicated.

Some employers have been trying to convey that while they can’t pay employee salaries while shut down, they still value the workers and want them to return when things are up and running again, he said.

“There’s a lot of uncertainty, but I don’t think people are totally throwing in the towel yet,” Gradisek said.

To read the full article, visit the Law360 website (subscription required).

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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