Originally Posted by
beis77
I suspect this would be very easy for companies to get around. Burning $50M+ per day, management could easily show that they burned through the money, even with the leaves. At the end of the day, it would just come down to a financial shell game; and considering how smart our management is, I’m sure they could easily (and legitimately) show that the grant money was all used up, and be off the hook before Oct 1st.
Was the grant money not earmarked spicifically for payroll and benefits? They either did or didn't spend it on payroll; that's not so easy to shell game.
The National Law Review summarizes it like this:
"In accordance with the CARES Act, all aid recipients must use the payroll support payments exclusively to cover the cost of payroll and benefits."
All the unpaid leaves they keep touting do nothing to bolster any case that their burn rate somehow accelerated payroll and benefit expenditures.