COVID-19 UPDATE from Bellas & Wachowski

Articles Posted in CoronaVirus – Business Concerns

Chicago Business Lawyer

The Dangers of Payroll Tax Deferment

As part of a series of executive actions rolled out in early August, President Trump ordered Treasury Secretary Steven Mnuchin to allow the deferral of the 6.2% payroll tax on employees from Sept. 1 through Dec. 31 for workers making less than about $104,000 on an annualized basis.  The plan was brought forth by the White House after it became clear that Congress did not plan to play ball with the President and pass an actual payroll tax cut.

After a hard look at the plan, it is obvious that small business owners should not be tempted by President Trump’s offer to defer paying some employee payroll taxes until next year.    Established through a non-binding Presidential Memorandum, this offer does *not* constitute a tax cut. 

Chicago Small Business Lawyer

The Key to Surviving as a Small Business

How can your business – and you – survive the COVID-19 pandemic?

It’s a tall order.   But small business owners have means of surviving.   The corollary shutdowns have impacted 20% of small businesses, according to the U.S. Chamber of Commerce, and restrictions have affected a far greater number. A study by the University of Illinois, University of Chicago and Harvard University and its business school estimates more than 100,000 small businesses are permanently shuttered. Not a surprise since many small firms don’t generally have more than a few months’ cash reserve.

cyber-security-1805246_1280-300x200

Cyber Security Insurance

UPDATED AUGUST 23, 2020 –  A federal judge in Kansas has ruled that three Missouri restaurants can proceed with their claims against Cincinnati Insurance Company alleging that the policies also covered “physical loss,” which the insurers failed to define in the policies.  The insurance company’s argument is that the policies provide coverage “only for income losses tied to physical damages to property, not to economic loss caused by governmental or other efforts to protect the public from disease.” In other words, they cover direct physical damages or losses from events like storms or fires.  This argument was rejected by the federal district court judge.

August 10, 2020 –  The sudden expansion of remote work arrangements in the wake of the COVID-19 crisis has created a buffet of opportunities for would-be cyber criminals. And the newly reconfigured, decentralized satellite workplaces in people’s homes look to be with us for some time.   In addition to protecting themselves from the network vulnerabilities created by these off-site offices, businesses need to undertake a thorough review of their cyber insurance policies to ensure that if a malicious actor causes them harm, they are protected on the fiscal front.

eviction1-300x251

Tenant Evictions

Updated August 24

Chicago landlords have extra hurdles in front of them if they want to evict tenants between now and September 25 as stipulated by the COVID-19 Eviction Protection Ordinance that passed City Council, and all Illinois landlords face a different terrain under Rules 120 and 139 promulgated by the Illinois Supreme Court, both of which occurred last month.

George Bellas Chicago Business Lawyer George Bellas answers questions for business owners.

Workman’s Comp for Essential Workers

An emergency rule promulgated in April by the Illinois Workers’ Compensation Commission gave certain classes of “essential” workers the ability to claim COVID-19 as an occupational disease vis-à-vis the ability to collect workers compensation.  This is a change that every Illinois business should be aware of.

The commission withdrew the rule after a court challenge, but last month Governor J.B. Pritzker signed legislation amending the Illinois Workers’ Occupational Diseases Act (820 ILCS 310, codified as Public Act 0633) to say that a “COVID-19 first responder or front-line worker” has the rebuttable presumption of having contracted the disease due to hazards and exposures in the workplace.

eviction-300x251

Evictions Due to Pandemic Issues

The moratorium is scheduled to end on July 31, 2020, it may very well be extended again. Once the moratorium period ends, Illinois landlords can file eviction suits due to the non-payment of rent.

NOTICE TO LANDLORDS:  Chicago residential tenants, who have lost income as a result of the COVID-19 pandemic, can respond to their landlords within five days of receiving an eviction notice under a Chicago Ordinance.  The notice must be in writing, whether in the form of a letter, email or text message. The notice can be as simple as, “I have been unable to pay rent because I have been financially affected by the COVID-19 pandemic.” For a more formal template, go to: www.chicago.gov/eviction

Chicago Business Lawyer George Bellas answers questions for business owners.
Updated August 9.

The Chicago area and Illinois business owners are facing a number of challenges and the CoronaVirus pandemic is threatening the continued viability of their business.   Here are some of the more frequently questions asked by business owners.

  • Paycheck Protection Program Forgiveness

05126AB9-5465-4D55-A58C-B15C206155C3-300x251

Small Businesses Reopening

As of today June 26, Illinois has reached Stage 4 of coronavirus reopening, which allows essentially all types of businesses to reopen provided they observe public health safety guidance and capacity limits, with no more than 50 people allowed in one place.

What does this mean for businesses, and how can they protect themselves—and their employees and customers—medically, financially and legally?

For the first time to our knowledge a judge has ordered rent relief for a Chicago restaurant.   The bankruptcy judge ruled that the “Act of God” clause in the lease gives the restaurant rent relief when it was forced to closed during the the COVID-19 mandatory closings.

George Bellas Chicago Business Lawyer George Bellas answers questions for business owners.

CoronaVirus FAQs

The force majeure clause in the lease of Italian restaurant Giglio’s State Street Tavern eliminated the restaurant’s obligation to pay full rent during the time when the City and State implemented the “stay-at-home order” to deal with the pandemic.   (For more info on the force majeure contact clause, see my other Blog on force majeure.)

Illinois Governor J.B. Pritzker issued an executive order on April 1 designed to protect health care providers from litigation arising out of COVID-19 cases. How does it do so, and how well would it work in practice if a lawsuit were filed?  The Emergency or Disaster Treatment Protection Act notes that statewide public health emergencies require “an enormous response” from different levels of governments working alongside private and public health care providers.

As such, the order attempts to “promote the public health, safety and welfare of all citizens by broadly protecting the health care facilities and health care professionals in this state from liability that may result from treatment of individuals with COVID-19 under conditions resulting from circumstances associated with the public health emergency.”

Pritzker’s order declares immunity from “any liability, civil or criminal, for any harm or damages alleged to have been sustained as a result of an act or omission in the course of arranging for or providing health care services,” so long as COVID-19 emergency rules and other applicable laws are followed; the act or omission related to the COVID-19 outbreak is in support of the state’s directives; and the services are provided in good faith.