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Started By
Message
An interesting return to work scenario
Posted on 4/19/20 at 9:59 am
Posted on 4/19/20 at 9:59 am
My wife's friend received an email from her boss stating that they plan on going back to work on April 27th. The email said they plan to spend the week power washing and painting, with the idea of reopening the 1st in Louisiana. It is not an essential business at all. (Dog grooming)
Her friend has been laid off from there with no pay since March 15th. Took her 4 weeks to get her first round of unemployment. The email stated that the owner took the PPP loan and is required to have everyone back or they lose part of the loan.
My questions are:
Isn't the point of the PPP loan to replenish your payroll if you've been continuously paying your employees? Can our friend still receive her unemployment payments if she refused to return to that employer, since technically the stay at home order hasn't been lifted? Should the employer pay back the employees for missed time since they took the loan?
Her friend has been laid off from there with no pay since March 15th. Took her 4 weeks to get her first round of unemployment. The email stated that the owner took the PPP loan and is required to have everyone back or they lose part of the loan.
My questions are:
Isn't the point of the PPP loan to replenish your payroll if you've been continuously paying your employees? Can our friend still receive her unemployment payments if she refused to return to that employer, since technically the stay at home order hasn't been lifted? Should the employer pay back the employees for missed time since they took the loan?
This post was edited on 4/19/20 at 10:01 am
11
Posted on 4/19/20 at 10:00 am to Donkus
quote:
Can our friend still receive her unemployment payments if she refused to return to that employer, since technically the stay at home order hasn't been lifted?
If your friend wants to be a deadbeat sure, stay home
Was 6 weeks off not enough?
This post was edited on 4/19/20 at 10:02 am
Posted on 4/19/20 at 10:01 am to Donkus
For a dog grooming service?
Ride that unemployment.
Ride that unemployment.
Posted on 4/19/20 at 10:04 am to Donkus
This is the predicament the libs hoped for.
Posted on 4/19/20 at 10:05 am to Cosmo
quote:
Was 6 weeks off not enough?
Well 5 of those were unpaid. I'm just trying to understand that if by taking the PPP loan, shouldn't that go towards covering those 5 weeks?
Posted on 4/19/20 at 10:08 am to Donkus
Here’s the dilemma, the business is obviously only bringing her back for selfish reasons. They didn’t mind sending her home with no pay before there was some money available for them. Personally, I’d go back to work because that’s the way I was raised. However, there is an argument for just riding the unemployment, especially with that job.
Posted on 4/19/20 at 10:13 am to Donkus
quote:
Well 5 of those were unpaid. I'm just trying to understand that if by taking the PPP loan, shouldn't that go towards covering those 5 weeks?
PPP will cover any 8 weeks through June 30th, so they could theoretically cover their expenses from May 1st through the end of June with it.
This post was edited on 4/19/20 at 10:15 am
Posted on 4/19/20 at 10:16 am to Donkus
quote:No, it only goes towards payroll from the time he took the loan (not previously).
Well 5 of those were unpaid. I'm just trying to understand that if by taking the PPP loan, shouldn't that go towards covering those 5 weeks?
Posted on 4/19/20 at 10:16 am to Donkus
I'm of the type that if my job wants me to go to work, I'll go to work.
I hate people looking for loopholes to be lazy.
I hate people looking for loopholes to be lazy.
Posted on 4/19/20 at 10:19 am to Donkus
I believe if they took the PPP AND pay the payroll; the loan is forgiven.
If they take the PPP AND do NOT pay the payroll; the debt must be paid back.
It’s up to the business receiving the PPP.
If they take the PPP AND do NOT pay the payroll; the debt must be paid back.
It’s up to the business receiving the PPP.
Posted on 4/19/20 at 10:18 am to LSUJay13
quote:
PPP will cover any 8 weeks through June 30th, so they could theoretically cover their expenses from May 1st through the end of June with it.
So in theory, if they do open May 1st, they will be paying the employees for 8 weeks from the loan and pocketing the money that would normally go towards payroll?
Posted on 4/19/20 at 10:20 am to High C
quote:
obviously only bringing her back for selfish reasons.
Or maybe they knew they had employees sitting at home without income, so they tried doing whatever necessary to get money so they can pay them
Posted on 4/19/20 at 10:21 am to Donkus
quote:
pocketing the money that would normally go towards payroll?
Without income, or with significantly lower income, there is no money to go towards payroll
Posted on 4/19/20 at 10:22 am to Donkus
quote:
So in theory, if they do open May 1st, they will be paying the employees for 8 weeks from the loan and pocketing the money that would normally go towards payroll?
That is the way it is laid out. It is to help the business get back on their feet and help solidify employment for the employees.
Posted on 4/19/20 at 10:28 am to Errerrerrwere
quote:
I believe if they took the PPP AND pay the payroll; the loan is forgiven.
If they take the PPP AND do NOT pay the payroll; the debt must be paid back.
Correct.
The problem is, if there are employees that refuse to return to work bc they are making more on unemployment. Then the FTEs are less than previously and the business is on the hook for that money (Although at a very low interest rate)
Posted on 4/19/20 at 10:29 am to Donkus
quote:
they will be paying the employees for 8 weeks from the loan and pocketing the money that would normally go towards payroll?
Well, if they did not have the PPP they would not be rehiring her, so no, they would not be pocketing the money that normally goes to payroll.
But the scenario you described is possible. Also the PPP does not all have to go to payroll or payroll related costs. Up to 25% can go to rent, utilities, and a few other things. Remember that the government uses VERY blunt tools. They spend two dollars for a dollar of value during the best of times.
Do you really think it takes half a trillion dollars to defend our country? Ever wonder why ten bazillion dollars into the “wars” against poverty and discrimination we still have those problems? We could have paid every foreigner and every minority $100,000 each to quit bitching, and we would have come off cheaper.
Posted on 4/19/20 at 10:30 am to Donkus
quote:
My wife's friend
Pics?
Posted on 4/19/20 at 10:31 am to Donkus
You are assuming that the business will be making pre shut down income instantly beginning May 1st. I would imagine that like most businesses, it will take at least a few months to return to normal levels. The owner, with the help of the PPP, will not have to worry about slashing hours as they ramp back up. If they are smart, they will use the PPP to ensure that they can function with a full staff over the next 3-4 months as business returns to normal.
Posted on 4/19/20 at 10:33 am to Donkus
quote:
So in theory, if they do open May 1st, they will be paying the employees for 8 weeks from the loan and pocketing the money that would normally go towards payroll?
realize that these businesses still have had rent, utilities and other expenses during this time. A hole has been created in invoicing and receivables that cannot be cured. The PPP program allows businesses to get back on their feet and manage all of their expenses without the added burden of making payroll.
But yeah, keep on thinking that we're just pocketing money.
This post was edited on 4/19/20 at 10:34 am
Posted on 4/19/20 at 10:36 am to Donkus
Actually, that is sounds like a great idea...that’s work you can do with minimal risk, since you need good ventilation. As for your friend, I don’t think its a good time to get pissy, because the easiest thing to do is fire her and that would mean no job and no unemployment.
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