Resources Available for Businesses and Workers Impacted by COVID-19
March 16, 2020
The coronavirus (COVID-19) outbreak, now a pandemic according to the World Health Organization, is having a significant impact on people and businesses around the globe, including those in the cannabis industry. Below, we’ve summarized the resources available from the State of California and the United States Government for workers and employers who are impacted by the coronavirus (COVID-19) pandemic.
CALIFORNIA
Relief for Workers
- If a worker can’t report to work because they are quarantined due to exposure to COVID-19, they can file a Disability Insurance claim for short-term benefit payments (which can range from $50 – $1300 per week). On March 12, Governor Newsom issued an executive order waiving the normal one-week waiting period so people can collect DI benefits during the first week.
- If a worker can’t report to work because they have to stay home to care for someone is quarantined due to illness from COVID-19, they can file a Paid Family Leave claim, which could get them up to 6 weeks of benefits, ranging from $50 – $1300 per week. If a worker can’t report to work because they have to watch their children due to school closures, you may be able to get unemployment insurance
- If a worker has reduced work hours or if their workplace is shut down as a result of COVID-19, they can file an Unemployment Insurance claim. This program provides partial wage replacement to workers who are unable to work at all or as much as they want to through no fault of their own. Benefits range from $40-$450 per week. On March 12, Governor Newsom issued an executive order waiving the normal one-week waiting period so people can collect UI benefits during the first week.
- Partial claims are also available to workers who are forced to work less than their normal amount of hours due to COVID-19, but whose employers do not want to terminate them.
- Self-employed workers and independent contractors should check to see if any insurance contributions were made in the past 5 to 18 months (possibly at a former job) and see whether they were misclassified as an independent contractor instead of an employee.
- The Labor Commissioner’s office has posted information about employee leave laws and COVID-19.
- The Department of Fair Employment and Housing has information about job protection and employment discrimination.
Relief for Employers and Businesses
- Employers who are forced to reduce their employees hours as a result of COVID-19 but who do not want to lay off employees should look into the UI Work Sharing Program.
- The Rapid Response Program may be able to help employers who are planning closures or major layoffs in response to COVID-19, by meeting with employers to discuss their options and to provide immediate assistance to workers facing job loss.
- Employers who are unable to pay taxes on time due to a hardship caused by COVID-19 can request a 60-day extension from the EDD to file and/or pay payroll returns and taxes without being penalized. A written request for an extension must be filed within 60 days of the delinquent payment or return.
- The California Department of Tax and Fee Administration is offering extensions for sales taxes and cannabis-specific taxes, as well.
- California iBank offers low-interest, state-backed loans to businesses impacted by regional disasters.
- The California Capital Access Program (CalCAP) provides coverage on losses for certain loan defaults; visit the CalCAP page for more information about this resource.
UNITED STATES
- The United States Small Business Administration is offering disaster assistance loans to people impacted by coronavirus. The SBA also has other capital access resources that may help in times like this.
ADDITIONAL RESOURCES
California Employment Development Department
California Labor and Workforce Development Agency
Governor’s Office of Business and Economic Development
Sonoma County Economic Development Board