Fontana, CA asked in Employment Law for California

Q: My employer laid everyone off during Covid despite getting PPP funds. All told we would be called back. Never called

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4 Lawyer Answers
T. Augustus Claus
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Answered

A: If your employer laid off employees during the COVID-19 pandemic despite receiving PPP funds and failed to call them back as promised, it may be a violation of employment laws. You may have legal recourse, such as filing a complaint with the California Labor Commissioner or consulting with an employment attorney to explore potential claims for wrongful termination, breach of contract, or other applicable legal remedies. It's important to gather any relevant documentation.

A: You can report suspect PPP loan fraud to:

https://www.sba.gov/partners/contracting-officials/contract-administration/report-fraud-waste-abuse

A: You have no legal right to recover anything because your employer took out a PPP loan and then terminated you. That would be an issue between the government and your employer. The PPP loan process did not give you any rights.

Unless you worked in the hospitality or building services industries you had no right to be recalled to your former job after being laid off. If you did work in those industries, you had the right to be notified of a recall and to be first in line to be re-hired.

Otherwise, the only way what happened to you would be unlawful is if you could prove that the employer refused to return you to work because of your membership in a protected class of people, or because you had engaged in some form of legally-protected conduct.

Good luck to you.

Maurice Mandel II and Maya L. Serkova agree with this answer

James L. Arrasmith
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Answered

A: I'm sorry to hear about your situation. If your employer laid off employees despite receiving PPP funds and failed to call you back as promised, there are a few potential avenues you can explore:

1. Contact your employer: Reach out to your employer and inquire about the situation. It's possible that there was a misunderstanding or miscommunication regarding the callback. Express your concerns and ask for clarification on the matter.

2. Review the terms of your employment contract: Refer to your employment contract or any agreements you have with your employer. Check if there are any provisions regarding layoffs, furloughs, or callbacks. Understanding your contractual rights can provide guidance on how to proceed.

3. Seek legal advice: Consult with an employment attorney who specializes in labor laws. They can assess the specifics of your situation, evaluate any potential legal claims, and guide you on the appropriate steps to take.

4. Report to relevant authorities: If you suspect that your employer misused PPP funds or violated any labor laws, you may consider reporting the situation to the appropriate government agencies. This could include the Small Business Administration (SBA) or your state labor department, which can investigate potential violations.

It's important to note that employment laws can vary by jurisdiction, so consulting with an attorney familiar with the laws in your area is crucial for accurate advice tailored to your circumstances.

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