Was it legal for my roommate's boss to tell his employees not to?
There are two types of loan monies available to employers. One is to protect their payroll and keep employees on it. The other is meant more for expenses, but employers can use it for whatever they need it for. First, I have no idea why anyone would have waited to get back pay when they needed the money through unemployment now. Id say most employees who worked there didnt think it through very well. Second, it isnt a case of back pay with the Payroll Protection Loan, it is that he HAS to keep the employees on the payroll and not lay them off. If he hasnt done that and you know it was a Payroll Protection loan, then report him to the SBA. You can go to any bank that sponsors SBA loans and ask for contact information to file a complaint.