On March 20th, Governor Phil Murphy signed a package of bills into law aimed at alleviating the economic impact that the coronavirus may have on New Jersey businesses and residents. Those bills were summarized in our prior client alert yesterday. Below is a summary of a few of the bills that pertain to small businesses and New Jersey residents:
- A-3845/S-2284: Expands EDA Small Business Loan Program to Include Small Businesses Negatively Affected by Certain Epidemics. Authorizes the New Jersey Economic Development Authority ("EDA") to provide grants during periods of emergency declared by the Governor, for the duration of economic disruptions due to the emergency. Extends the uses for funds in the Economic Recovery Fund and provides that EDA may extend NJ Grow Projects, if project delay is a result of economic hardship as a result of the state of emergency. Allows the EDA to grant certain business documentation submission deadline extensions.
- A-3848/S-2301: Concerns Time Off from Work in Connection with Infectious Diseases. Prohibits an employer, during the Public Health Emergency and State of Emergency declared by the Governor in Executive Order 103 of 2020, from terminating or refusing to reinstate an employee if the employee requests or takes time off from work based on a recommendation from a licensed medical professional to do so as a result of COVID-19. This appears to apply to all employers, including municipal employers. There is a $2,500 penalty for an employer that violates the provisions of this bill.
- A-3861/S-2290: Remote Shareholders' Meetings during a State of Emergency. Permits corporations to hold shareholders' meetings in part or solely by means of remote communication. During a State of Emergency declared by the Governor, a meeting of shareholders may be held by means of remote communication to the extent the board authorizes and adopts guidelines and procedures governing such a meeting. Shareholders participating in a meeting of shareholders by means of remote communication are deemed to be present in person and are entitled to vote at the meeting, regardless of whether the meeting is held at a designated place or solely by means of remote communication.
The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion. You should consult a lawyer concerning your specific situation and any specific legal question you may have.