As California businesses have slowly been allowed to reopen, many business owners are not sure if they can continue as they have. Whether it’s due to the new COVID-19 restrictions for their industry, or fears as to whether customers consumption appetite has changed, business owners are now taking time to analyze how the pandemic will continue to affect their business. If you are a business owner concerned with whether you can continue your existing business model under the “new normal”, we can help. Not only are we able to advise you on your business and the possible implications of reopening, but we have also compiled a list of points to consider if you want to change your business model.

1. Legal Entity Type

If you’ve already determined that your current business model will not be sustainable in the long run, and have already decided to change it, then there are legal issues to consider.  The first is whether you can continue to operate the business with its current legal entity type. An experienced business attorney can be of help in making this decision, for if your current legal entity type is unsuitable for your new business model, you will need to establish a new business entity.

If you do need to establish a new business entity, you’ll have to figure out what type of business entity is more suitable than your existing one (and why!) Finally, you’ll have to decide on the relationship between your existing business entity and the new one, for example, it could be a subsidiary, or “sister”, company.

2. Employment Law Compliance

Once you’ve outlined your new business model, the type of legal entity it requires, you’ll need to see whether there are additional labor laws associated with this new model.  If, for example, you’ll be hiring remote workers instead of in-office workers, you may need to consult state and federal employment laws regarding the physical location of your employees. Don’t make drastic changes without verifying your business is in compliance with existing laws.

Be sure to update your human resources department, or employee guides to reflect changes required by your new business model.

During the COVID-19 pandemic, you also want to keep up-to-date with current and upcoming changes to pandemic-related employment laws, such as the Family First Coronavirus Response Act.

3. Contracts

Before making a pivot, see that the change in business model and activities do not break any existing contracts you have that may limit competition (e.g. non-competition clauses in certain industries). Have a contract attorney check your existing contracts before making the final leap.

Finally, before executing new contracts, consider adding provisions that may help with the COVID-19 situation, such as termination clauses.

4. Permits

When planning your business pivot, verify that you have all the permits necessary for the new business model to operate.  Also, consider if there are any regulations that may now affect your business due to the change, such as online marketing restrictions (FTC regulations).

5. Data Privacy

If your business is going online for the first time, it might be important to familiarize with data privacy laws, especially regarding the safety of your website and regulations regarding personal identifiable information (PII).

6. Intellectual Property

Generally there are two types of intellectual property issues a new business model may trigger, the first is licensing for music or other property used in media (e.g. podcasts, videos), and the second is trademarks for your new logo, etc. Read on for why you need to protect your intellectual property. 

 

As we gradually transition from quarantine to the new post-coronavirus “normal”, we all have to consider new ways of doing things for our small businesses. If we, at Lum Law Group, can be of any assistance in helping your business survive the pandemic, please contact us and we would be happy to be of assistance.

During the novel COVID-19 pandemic, we are all trying our best to stay safe, stay home, and keep our distances.  However, with United States Citizenship and Immigration (USCIS) offices opening up starting June 4, 2020, some of us may need to make a visit.

A few reasons why you may need to visit USCIS include:

Generally, if your appointment was cancelled due to office closures, you do not need to do anything. You will receive a new appointment notice in the mail.  This also applies to biometrics appointments for finger printing.

If you need an appointment for some other purpose, e.g. an INFOPASS, then you can make one through the USCIS contact center if your local office is open. Not all offices will be open, so check the USCIS office closures page to see if your nearest office is on the list. If it is, it’s closed.

If you need assistance with an application or petition, scheduling an appointment, or cancelling a scheduled appointment, feel free to contact our office for support.

When visiting USCIS offices, be sure to be prepared in the following ways:

Remember to follow the general coronavirus guidelines in moving outdoors, which is to stay home if you’re feeling unwell.  If you are sick, have symptoms, or have been in contact with someone who is sick, please cancel your appointment immediately according to the instructions on your appointment notice.  Your appointment will be rescheduled without penalty.

 

On April 15, 2020, California Governor Newsom announced that undocumented adult immigrants will receive a $500 stimulus cash payment from the State. As previously discussed, many undocumented immigrants do not qualify for the federal CARES ACT stimulus check.  Undocumented immigrants also do not qualify for unemployment insurance benefits.  As a result, California will distribute $500 dollar stimulus checks, up to $1000 per household, to undocumented Californian immigrants.  This money will come from the state’s 75 million dollar disaster fund and supplemented by a 50 million dollar donation by philanthropists for a total of 125 million dollars.

The announcement states that the fund will begin accepting applications in May 2020, and approximately 150,000 undocumented immigrants will receive the cash payment.

It was not clear to us exactly how these 500 dollar cash payments will be distributed, but with some digging, we found a list of “relief funds” for undocumented immigrants. The list is in English, Spanish, and Chinese.  According to the list, there are national relief funds and local relief funds available to undocumented immigrants who meet the listed requirements. We are not sure at this time if these funds are one of the avenues for the California relief payments, but they may be worth checking out regardless.

If you have questions about California’s guidelines and regulations on shelter-in-place, essential work, staying safe, etc., you can refer to California’s Immigrant Guide.  The guide includes information on the public charge determination, which has been translated into several languages, including Chinese, Korean, and Tagalog.

Some key notes we identified from the California immigration guide include:

If you need COVID-19 testing but don’t have private health insurance…

“Even if you are undocumented and/or don’t have insurance, you can get necessary testing and treatment for COVID-19 through Medi-Cal emergency services, even at a local clinic.”

If you have Medi-Cal, but aren’t sure what’s covered…

“Emergency services are free for enrolled Medi-Cal beneficiaries which includes COVID-19 testing, evaluation and treatment services.”

If you don’t qualify for unemployment insurance benefits because you’re undocumented but you tested positive for COVID-19, are caring for a family member who is sick, and so forth…

“Undocumented immigrants may be eligible for State Disability Insurance (SDI) and Paid Family Leave.”

If you cannot afford to pay rent due to the COVID-19 pandemic…

“Under the Executive Order, you are still required to eventually make up rental payments you miss, but you will not be evicted for nonpayment of rent until at least June.

In order to qualify for the eviction protections, you must notify your landlord in writing within 7 days of your nonpayment that you cannot pay all or part of your rent due to COVID-19. For example, if your rent is due April 1st, then by April 8th.”

How has COVID-19 affected U.S. immigration? Are you a small business owner with questions on how to manage it during the pandemic? Do you have other questions regarding COVID-19 and how we can assist you? Contact us today. We’re here to help.