Here is the most up-to-date information and resources we have as of March 19, 2020:

There remain two confirmed cases of Coronavirus in Pasadena. As testing becomes more available and results more quickly analyzed, that number could grow.

In the meantime, everyone who can is encouraged to work from home. Please practice social distancing as much as possible. Please be safe and be healthy.

The Pasadena Chamber of Commerce remains open with all but one employee working remotely. We are accepting no face-to-face meetings and will not allow for walk-in visitors until the emergency is lifted. While we will continue invoicing for membership, we are not going to drop any business for non-payment and will be very mindful of everyone's current economic situation. We are happy to defer payment, create payment plans and do whatever it takes to ease the burden on your business. Our interest in keeping our members as prosperous as possible and to get our economy stabilized. (Growth is probably too much to ask for right now.)

Please let us know what we can do to support you, your business and your employees. Email paul@pasadena-chamber.org with questions, comments, ideas or innovations you think could help your fellow businesses weather this crisis. And please, be safe and be healthy and take care of your loved ones.

As a reminder, many of our members remain open for business. Some have had to adjust how they delivery service or product. Many restaurants are offering delivery service as well as take-out and curbside pick-up. Some can provide wine, beer or alcohol with your food. (Simply ask... ) Cleaners and laundries are providing pick-up and drop off service, as Bryan's Cleaners and Laundry have done for years. Vroman's Bookstore continues to take online and phone-in orders and will deliver books and merchandise VIA US Mail for 99¢ and provide curb-side service to customers. many retailers are doing the same. Grocery stores remain open, though with adjusted hours, in some cases, and special shopping times for senior citizens. For up-to-date information on openings and adjustments, please visit the businesses' websites. You can find all current Pasadena Chamber members here: http://www.pasadena-chamber.org/directory/index-alpha

If we want to return to the Pasadena we know, we need to ensure that our fellow businesses remain in business. The best way to do that is by continuing to patronize them. If you can't shop now, go online and purchase a gift card. Income now may mean the difference between a business remaining open (or being able to open again once the crisis is abated).

ADVICE FROM COMMERCIAL REAL ESTATE PROFESSIONALS

Bill Ukropina of Coldwell Banker Commercial NRT has been in communication with landlords related to tenant requests for concessions. Here are some excerpts of his note:

  • "please remember that; your tenants are not your enemies, ever!  Many of you receiving this letter, are making hundreds of thousands or more, of Annual Net Income from Buildings I have sold you the past 35 years.  It is time to be empathetic to your Tenants.  You should listen carefully to your Tenants requests for rent reductions or other concessions.  Let your Tenants, not you, do the talking.  Pick up your phone when your Tenants call or return their call asap if you are not available.  Do not ignore their calls or emails, it is much better to respond promptly and listen to their concerns."
  • " For those Tenants that have been consistently paying rent on time if requested, we advise you to give them a reasonable rental concession. "
  • " Remember: any rent or other concession agreement you make with your Tenants, should be in writing.  Call or email my team and we will help you write the Lease Amendment, regarding a rent reduction or other concessions you may agree to give."

For tenants, we understand you are likely seeing significant drops in your income. Others may have closed temporarily to help control financial losses. As income disappears during this crisis, please contact your landlord to discuss relief.

Our advice:

  1. if you need concessions from your landlord (or anyone) to remain in business, please be honest, be forthright, talk openly and don't ask for more than you need.
  2.  
  3. Look closely at your expenses. Which can be deferred? The City of Pasadena has suspended late charges and interest charges on any city services or charges. The City has also pledged not to shut off any utilities for non-payment. That means, at least for the duration of the emergency order, your electricity and water will not be shut off and you will not see interest or penalty charges added to your bill. It may make sense for you to discuss similar accommodations from other service and utility providers.
  4. No one wants you to close, even in the short term. Not your vendors, not the City of Pasadena and certainly not the Chamber. If you are struggling, please ask any and all of us for help.
  5.  

You can make your ideas and concerns known to the City of Pasadena through email by clicking here. Please cc: paul@Pasadena-Chamber.org. Also, please email me with any ideas you would like to share on coping with this crisis. Also, let me know what you are doing to keep your business open.

SCAMMERS WILL TAKE ANY OPPORTUNITY

Monterey Park police report that they were alerted about people going door--to-door offering Coronavirus inspections for a fee. Amazing! Be alert to anything or anyone related to Coronavirus that asks for a payment.

RESOURCES AND INFORMATION

DISASTER LOAN ASSISTANCE
U.S. Small Business Administration – Federal Loans
Los Angeles City Small Business Emergency Microloan Program
 
ACCESS TO CAPITAL PROGRAMS
California IBank Small Business Finance Center
California Treasurer's CalCAP
 
WEBINARS
Statewide Updates for California Small Businesses Impacted by COVID-19
Funding updates for California small businesses impacted by COVID-19
9
WORLD HEALTH ORGANIZATION
 
CENTER FOR DISEASE CONTROL AND PREVENTION
Interim Guidance for Businesses & Employers
Environmental Cleaning & Disinfection Recommendations
Printable Resources
 
U.S. CHAMBER OF COMMERCE
Workplace Tips for Employees
Guidance for Employers
 
U.S. SMALL BUSINESS ADMINISTRATION
 
STATE OF CALIFORNIA
California Department of Public Health
Employment Development Department
Work Sharing Program
Guidance Documents for Employers
Business & Economic Development Department Resource Guide
Small Business Finance Center
Gov. Newsom’s Updated Policies on Gatherings
Gov. Newsom’s Executive Order Press Release
 
CAL CHAMBER
Top Resources for Employers
FAQs on Laws Enforced by Labor Commissioner
 
LOS ANGELES COUNTY
Public Health Department
Economic Development Corporation
Employer Guidance
Business & Economic Development Guide
Metro Updates
Staying Home If You Are Sick Poster
FAQ
 
LEGISLATiVE EFFORTS:

The Pasadena City Council, and in some cases City staff, have steps to alleviate economic and practical impacts of the current emergency declaration and virus epidemic.

  1. Most parking enforcement has been waived in commercial areas. Parking meters are all now set at a 20 minute default and you will be ticketed for exceeding that 20 minute limit. (The idea is to facilitate pick-up and delivery from local restaurants who cannot be open for in-store business.)
  2.  
  3. The City of Pasadena will waive late fees on any municipal service or charge. There is also a moratorium on utility shut offs for non-payment as a result of the emergency declaration and Coronavirus outbreak. Plainly said, if you have to forgo paying bills, there is no penalty, increased charge, interest or shut off as a result of not paying your City of Pasadena utility bill or any municipal fee.
  4.  
  5. The City Council directed the City Manager to create a $150,000 fund to assist senior citizens who may be unable to buy food during the crisis.
  6.  

On the Federal Level, Congress is considering several proposals, most notably focusing on unemployment and family leave during the crisis.

  1. President Trump is asking Congress for $500billion in aid to small businesses and another $500 billion in aid that would go directly to American families.
  2.  
  3. Employment Legislative Actions in the Works Following the COVID-19 Outbreak (in detail):
    1. As of March 19, 2020, the federal legislature has quickly sprung into action to address issues of job security, the need for paid and unpaid leave, and tax credits for employers to help pay for that leave. The Families First Coronavirus Response Act, or H.R. 6201, is a piece of bipartisan legislation, signed into law yesterday by President Trump. Businesses with fewer than 500 employees should take note as the leave provisions are specifically crafted for smaller to mid-size businesses. The following is a summary of the key points that will go into effect 15 days after the date of enactment (on or about April 2, 2020) and will expire on December 31, 2020.Emergency Family and Medical Leave Expansion Act

      1. The Act provides 12 weeks of job-protected paid Family and Medical Leave Act (FMLA) leave—of which the first 14 days may be unpaid—for employees of employers with fewer than 500 employees.•The revised thresholds for a covered employer or an eligible employee does not apply to other types of FMLA leave unrelated to COVID-19.
      2.  
      3. Who is a qualified employee?oUnlike other previously existing FMLA entitlements, this law has a short time frame for which employees have had to be working for their employer, specifically at least 30 calendar days.oBoth full-time and part-time employees are covered, and the amount of the benefit is tied to the number of hours that an employee would normally be expected to work, or based on a six-month average if the employee has varying or irregular hours.
      4.  
      5. The law does include an express exception for employees who are health care providers (as defined by the FMLA) or emergency responders.•Who is a covered employer? The threshold for coverage is any employer with fewer than 500 employees. The Department of Labor has the authority to exempt small businesses with fewer than 50 employees from the COVID-19 leave requirements when those requirements would jeopardize the viability of the business as a going concern. What expanded benefit is available for qualified employees of a covered employer?
      6.  
      7. Employees will have both unpaid and paid job protected leave for a “qualifying need related to a public health emergency,” which occurs where “the employee is unable to work (or telework) due to a need for leave to care for a son or daughter under 18 years of age of employee if the school or place of care has been closed, or the child care provider of such son or daughter is unavailable, due to a public health emergency.” The first 10 days can be unpaid, though an employer can encourage employees to useac crued personal or sick leave during the first 14 days (though employers may not requireemployees to do so). After the first 10 days (or two working weeks), employers must compensate employees for up to 10 weeks in an amount that is not less than two-thirds of the employee’s regular rate of pay with a cap of $200 per day per employee and $10,000 in the aggregate. While the Act provides that an employee who takes covered leave must be restored to his or her position, it contains an exception for employees of businesses with fewer than 25 employees, if the employee’s position no longer exists due to economic conditions or changes in the employer’s operations caused by the public health emergency. However, the employer must make reasonable efforts to restore the employee to a position equivalent to that which the employee held when leave commenced, with equivalent pay, benefits, and related terms and conditions of employment  
      8.  
      9. Emergency Paid Sick Leave Act
        1. The Act provides a first at the federal level – paid sick leave for both public-sector and private sector employees of businesses with fewer than 500 employees, in six identified instances “that the employee is unable to work (or telework).” •Unused sick leave will not carry over to subsequent years.
        2.  
        3. Who is a qualified employee?oDifferent than the Emergency FMLA law, the paid sick leave requirements do not have a minimum time period for which the employee has worked for the employer to be eligible to have paid sick leave.oThe law again includes an express exception for employees who are health care providers or emergency responders. Who is a covered employer?oThe threshold for coverage is any employer with fewer than 500 employees.
        4.  
        5. The Secretary of Labor may exempt small businesses with fewer than 50 employees from invoking the provisions with respect to caring for children whose school or day care provider has been closed or otherwise rendered unavailable due to COVID-19 precautions, if such requirements would jeopardize the viability of the business as a going concern.
        6.  
        7. When is an employee eligible for paid sick leave and how much do they receive?
          1. Employees are eligible for payment at their regular rate of pay, up to a maximum of $511 per day and $5,110 in the aggregate, where: The employee is subject to a federal, state, or local quarantine or isolation order related to COVID-19; The employee has been advised by a health care provider to self-quarantine due to COVID-19 concerns; or The employee is experiencing symptoms of COVID-19 and seeks a medical diagnosis.Employees can receive two-thirds of their regular rate of pay, subject to a daily maximum of $200 and an aggregate cap of $2,000, where:The employee is caring for an individual who: (1) is subject to a quarantine or isolation order, or (2) has been advised by a health care provider to self-quarantine due to COVID-19 concerns;•The employee is caring for a son or daughter of that employee whose school or care provider has been closed, or if the child care provider is unavailable due to COVID-19 concerns. The statute relies upon the FMLA’s existing definition of “son or daughter,” which includes stepchildren, adoptive children, and foster children; or •A catchall provision where the employee is “experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.” The parameters of this final subgroup have not been clearly delineated and will presumably require additional regulatory clarification.
      10.  
      11. What are the other noteworthy provisions?
        1. Employers cannot require employees to use other accrued sick leave before using the benefits provided under this law.
        2. Violations of the sick leave provisions are enforceable under Sections 16 and 17 of the Fair Labor Standards Act (29 U.S.C. §§ 216, 217), which authorize liquidated damages and attorneys’ fees.
        3.  
        4. Covered employers are required to post and keep posted, in conspicuous places on the premises of the employer where notices to employees are customarily posted, a notice outlining these requirements, to be prepared or approved by the Secretary of Labor.Emergency Unemployment Insurance Stabilization and Access Act of 2020In addition to the leave requirements, the Act provides $1 billion in emergency unemployment insurance (UI) relief to the states: $500 million for costs associated with increased administration of each state’s UI program and $500 million held in reserve to assist states with a 10 percent increase in unemployment. Besides the necessary increase in unemployment, in order to receive a portion of this grant money, states must temporarily relax certain UI eligibility requirements, such as waiting periods and work search requirements.
      12.  
      13. Tax Credits For Paid Sick And Paid Family And Medical Leave
        1. To assist employers with the financial burden with providing these new paid leave entitlements, the Act provides employers with a refundable tax credit. The law caps the amount of qualified sick leave wages taken into account for each employee at $511 per day. The credit would offset $200 per day of wages for employees who must care for a loved one or whose child is home because of a school or daycare closing. Self-employed workers will also qualify for the same level of refundable tax credit to offset wages paid during an illness, with a corresponding lower amount available if the absence from work is used to take care of a family member or provide for a school-aged child who must stay home. The Act also includes $15 million for the Internal Revenue Service to implement the tax credits for paid sick and paid family and medical leave. Large Employers Currently, there is no pending legislation intended to cover large employers with expanded FMLA or paid sick leave requirements. However, President Trump has suggested that the Senate may add a paid sick leave requirement for business with 500 or more employees.
        2.  
      This alert is published as a service to our clients and friends of Buchalter. The material contained here is provided for informational purposes only and is not intended to constitute advertising, solicitation or legal advice. The views expressed herein are solely those of the authors and do not necessarily reflect the views of Buchalter or its clients. For more information, visit www.buchalter.com