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PPP Guidance for Employees Refusing to Return to Work

May 11, 2020

The Payroll Protection Program (PPP), part of the CARES Act and response to the COVID-19 pandemic, makes small business loans available to employers that can help cover up to 2.5 times the average monthly payroll. Using the funds this way makes the loan entirely forgivable. The catch is that businesses must rehire the same number of full-time employees that it used to calculate the PPP loan amount. The problem we’re hearing about now, is that some employees are making the decision to stay home and don’t want to return to work and not necessarily having to do with coronavirus concerns. Some are opting to stay home with unemployment benefits and don’t want to lose them by returning to work. This is guidance from the Small Business Administration (SBA) who recently issued new guidance regarding the PPP and those that are refusing to return to work after a business reopens.

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