Despite the joint statement by the Treasury Department, the Federal Reserve and the FDIC, many of our clients continue to ask about state law restrictions related to postponing payroll for employees. Below is a discussion of some of the most frequently asked questions that Orrick attorneys have received about payroll and employment matters. The guidance below is not intended to be a substitute for obtaining legal advice based on individual circumstances. Employers should consult with employment counsel regarding their individual circumstances before determining a course of action.
The guidance provided here is updated as of the time of this distribution. Given the dynamic nature of the situation, we encourage you to reach out to your Orrick client team. We will provide refreshed guidance as more information becomes available.
If payroll is delayed, you should notify employees of the delay, let them know it is related to the closure of Silicon Valley Bank, and inform them that the company is working on getting the payments processed. The notice will need to be tailored based on business circumstances, including when payment can be expected and if any other changes to the designated pay date are being made. The timing and frequency of when wages must be paid is governed by the law of the state in which the employee works. Most companies have designated pay dates...
The Dangote Group has become aware of a publication titled “Aliko Dangote Speaks Out on Why He Distanced Himself from Tony Elumelu,” which is false, malicious, and baseless. At no time did the Pre...