By Amy E. Ebeling, Mary Ellen Schill and Benjamin E. Streckert
May 4, 2020
Over the weekend, the Department of Treasury issued an update to their PPP FAQs. Question #40 clarifies that an employer’s forgiveness amount under PPP will not be impacted if the employer attempts to rehire a previously laid off employee and the employee refuses the offer to be rehired. The offer from the employer must be made in good faith and should be made in writing for the same salary/wages and the same number of hours as the employee’s prior position. The employer should also document the employee’s rejection of the rehiring offer. Employees and employers should be aware that employees who reject rehiring offers may be forfeiting eligibility for unemployment compensation.
The updated FAQs also state that the SBA and Treasury intend to issue an updated interim final rule with additional clarification. We are hopeful that this updated interim final rule will have additional details on PPP forgiveness.
The content in the following blog posts is based upon the state of the law at the time of its original publication. As legal developments change quickly, the content in these blog posts may not remain accurate as laws change over time. None of the information contained in these publications is intended as legal advice or opinion relative to specific matters, facts, situations, or issues. You should not act upon the information in these blog posts without discussing your specific situation with legal counsel.
© 2021 Ruder Ware, L.L.S.C. Accurate reproduction with acknowledgment granted. All rights reserved.