June 24, 2020
 
Question:

Jennifer,

I did not pay my employees while we were closed until I received the PPP funds and then those who returned to work I put back on payroll.  One of the doctors I employed is refusing to come back and now threatening to sue me for not giving proper notice and paying salary during COVID-19 PAUSE.  Now what? 

Any advice is appreciated.  

Thank you, 
Dr. K

Answer: 

Without seeing the agreement between the practice and the employee, I cannot answer with any level of specificity.  Suffice it to say, you are not alone. The above fact pattern is the same for many of your colleagues.  Those who were closed did not pay until PPP came in.   What to do next?  We need to see the employment agreement and strategize on a plan.  Do you come to an agreement?  Can you come to a reasonable agreement?  If so, we have to properly document any settlement.  If there is no agreement and a stalemate persists, the court system will most certainly be tested and the Doctrine of Impossibility is most certainly going to be invoked in one of the first lawsuits to  proceed.  It will be interesting to see whether a judge will take the position that Governor Cuomo's PAUSE will also PAUSE payroll obligations...   

I'll be tracking and will absolutely keep you posted.  In the meantime, if you are posed with this issue and an employee seems likely too extort, do not wait to have the matter assessed.   You can email me directly with the basics and a copy of the employment agreement at issue, if applicable.  

 
 
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