Paycheck Protection Loan Forgiveness Issue: When Rehire Offer is Rejected

June 10, 2020

As states begin to lift stay-at-home orders, businesses are taking steps to return to a normal schedule and pattern of employment. While some employees welcome this opportunity, some employees will refuse to return to work, particularly if they are making more money through the coronavirus stimulus bill that currently provides an extra $600.00 per week paid by the federal government through July 31, plus expanded state unemployment benefits for up to 39 weeks.

This can create havoc for employers who received funds through the Paycheck Protection Program (“PPP”). The PPP requires employers to rehire employees and return to pre-COVID staffing levels or face a reduction in loan forgiveness.

What can be done to eliminate this reduction?

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