Membership Directory – The brand new Power Inn Alliance Membership Directory is now available! Take a look at this interactive list of your Power Inn neighbors. 2021 Membership Directory
Check out our Restaurant & Entertainment Guide
Crime Prevention Guide – What to do when an issue arises
Who to Call, How to Report – Issues such as crime and illegal dumping
Resources and Financial Assistance
Business Guidance – Find a Business Mentor. Be a Business Mentor. MicroMentor.org
Sacramento County COVID-19 Resources, Opening Guides by Industry, and Help for those affected by Civil Unrest – More information
New Small Business Resource: California Rebuilding Fund – The California Rebuilding Fund is a loan program to support California’s small businesses-especially those located s economically disadvantaged and historically under-banked areas of the state. The loans are flexible, transparent and are designed to help businesses access the capital and advisory services they need to get through these challenging economic times. Click here to learn more about the program!
Legal Advice from Young, Cohen & Durrett LLP
AB 80 – New State Tax Breaks
On April 29, 2021, Governor Newsom signed Assembly Bill 80 (AB 80) into law. AB 80 allows expenses associated with certain federal loans related to the COVID-19 pandemic to be deducted from state taxes, conforming more with the federal deductions. The tax break applies to employers which are not publicly traded companies and which can prove they incurred at least a 25% loss during at least one three-month period in 2020.
For taxable years beginning on or after January 1, 2019, AB 80 excludes from gross income any advance grant amount pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Consolidated Appropriations Act, 2021, (CAA) as well as covered loan amounts forgiven pursuant to the CARES Act, the Paycheck Protection Program (PPP) and Health Care Enhancement Act, the PPP Flexibility Act, and the CAA.
Additionally, AB 80 conforms state law to federal law with respect to the provisions of the CAA which prohibit reduction in tax deductions, denial of basis adjustments, and reduction in tax attributes based on the exclusion of forgiven loan amounts from gross income for taxable years beginning on or after January 1, 2019. Further, AB 80 also conforms state law to federal law with respect to the tax treatment of forgiven PPP loans for taxable years beginning on or after January 1, 2019.
If you have any questions about employment law, please reach out to the experts at Young, Cohen & Durrett, LLP at (916) 569-1700. Please note that we are not tax experts and you should consult with your tax preparers regarding the exact requirements of this new law and how to best maximize these tax changes for your company.
New California Re-Hire Law
Last Friday, April 16, 2021, Governor Newsom signed into law Senate Bill 93 (SB 93). SB 93 requires certain employers to first offer any new positions to covered employees who were laid off for COVID-related reasons. Covered employers include those who own or operate hotels with 50 or more rooms, as well as employers in other related industries—private clubs, event centers, airport hospitality operations, airport service providers, or providers of building service (janitorial, building maintenance, or security services) to office, retail, or other commercial buildings. Covered employees are those who worked two hours or more per week for a covered employer, were employed by a covered employer for at least six months in 2019, and were “separat[ed] from active service” for COVID-19-related reasons.
Once there is an open position, covered employers will have five days to contact covered employees who are qualified for the position to notify them of the opening; this must be done in writing, either by hand or last known physical address, and by email and text where known. Covered employees are qualified if they held the same or similar position at the time of their most recent layoff by the employer. If more than one covered employee is interested in an offered position, the employer must offer the position to the employee with the most seniority, defined as the greatest length of service based on the employee’s date of hire with the company. After the employee receives the offer, they will have five business days to consider it. Additionally, if the employer chooses to fill the open position with someone other than an interested, covered former employee, the employer must send a follow-up notice to the covered employee including specified reasons for the decision to hire someone else over them; this must be done within 30 days of hiring the new employee.
For at least three years, measured from the date of the written notice regarding the employee’s layoff, covered employers must also maintain records of the following:
- The employee’s full legal name;
- The employee’s job classification at the time of separation from employment;
- The employee’s date of hire;
- The employee’s last known address of residence;
- The employee’s last known email address;
- The employee’s last known telephone number;
- And a copy of the written notices regarding the layoff provided to the employee and all records of communications between the employer and the employee concerning offers of employment made to the employee pursuant to this new law.
This program will remain in place until December 31, 2024, and it also applies to successor employers, so if a business transfers ownership, the new owner must continue to reach out to any of the previous owner’s former employees who qualify. Employers may not retaliate against employees who exercise their rights under SB 93 or those who mistakenly, but in good faith, allege that the employer is not complying with this law. Employees may file a complaint with the DLSE, which may award: hiring and reinstatement rights; front or back pay; value of the benefits the complainant “would have received under the employer’s benefit plan;” and interests on all amounts due and unpaid. The DLSE can also impose civil penalties of $100 for each employee whose rights are violated, as well as liquidated damages of $500 per employee “for each day the rights of an employee under this section are violated and continuing until such time as the violation is cured.”
Based on this information, it may be wise to consider developing a template letter to provide to qualifying employees that gives them the option to opt out of receiving more offers in the future as well. If you would like our assistance in drafting that letter, or if you have any questions about whether your business will be subject to this new law and what would be required of you as an employer, please call the experts at Young, Cohen & Durrett, LLP at (916) 569-1700.
New Legislation in 2021!
- Provide written notice to all employees, and the employers of subcontracted employees, who were on the premises at the same worksite as the “qualifying individual” within the infectious period that they may have been exposed to COVID-19.
- Provide written notice to the exclusive representative (union), if any, of the employees above.
- Provide all employees who may have been exposed and their exclusive representative, if any, with information regarding COVID-19-related benefits to which they may be entitled, including but not limited to worker’s compensation, COVID-19-related leave, and paid sick leave, as well as the employer’s anti-discrimination and anti-retaliation policies.
- Provide notice to all employees, the employers of subcontracted employees, and the exclusive representative, if any, of the disinfection and safety plan that the employer plans to implement and complete, per CDC guidelines.
- Uses substantially the same facilities or substantially the same workforce to offer substantially the same services as the predecessor employer. This factor does not apply to employers who maintain the same workforce pursuant to Chapter 4.5 (commencing with Section 1060) of Part 3.
- Has substantially the same owners or managers that control the labor relations as the predecessor employer.
- Employs as a managing agent any person who directly controlled the wages, hours or working conditions of the affected workforce of the predecessor employer (the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code).
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