COVID-19
National Reopening – Shortly after the White House released its Opening Up America Again plan, states began to their own announce plans to reopen as well. The federal framework establishes three phases for states to gradually return to “normal” as certain milestones are achieved. In Phase I, a declining number of new cases is necessary for states to begin loosening restrictions and allowing businesses and public spaces to reopen. Social distancing should still be maintained in Phase I. Only a handful of states meet that criterion, including Alaska and Montana, which are likely to be the first states to reopen. Specific requirements under Phase I, II and III of the Opening Up American Again plan are available here. It’s important to note that employer obligations are also outlined in the plan.
Each state is expected to create its own localized plan within the federal framework. As noted above, Alaska and Montana are furthest along in the process. Georgia is also likely to be one of the first to reopen even though it has yet to pass the Phase I milestones outlined in the federal plan. Both Alaska and Montana have begun releasing parts of their state reopening plans that fit within the federal framework. Alaska’s is the most detailed to date and is available here. Both states have very specific requirements for retail locations. And, both allow for the reopening of dining areas with stipulations that include social distancing and enhanced sanitation practices. Employers need to be cognizant of federal, state and local requirements which may evolve on a weekly or even daily basis.
Many states are likely to allow flexibility for municipalities to manage the reopening process in their areas. Anchorage, for instance, is likely to operate on a different timetable compared to the rest of Alaska. The governor of Texas, similarly, has indicated that counties will have the authority to establish their own timelines and plans and Florida is expected to adopt a similar tact. By contrast, the governor of Georgia indicated that municipalities may not be granted that level of flexibility. Expect details to be released on a nearly daily basis as states grapple with balancing public health concerns against the desire to jumpstart economic activity. Most southeastern states are expected to begin reopening soon, many before or shortly after May 1. Georgia has released reopening guidance for restaurants. More details. A number of “flyover” midwestern states are on a similar timeline as the southeast. West coast states and northeastern states are likely to be the last to reopen. Illinois is on a similar, delayed track. The dates are a moving target and could change quickly and it’s likely that some states will loosen restrictions, experience an outbreak and have to tighten back down.
Business Liability – Employers need to be cognizant of federal, state and local requirements, which may evolve on a weekly or even daily basis. This week, White House Advisor Larry Kudlow argued that businesses shouldn’t be held liable if customers or employees are infected. The U.S. Chamber of Commerce is advocating for a clear and defined safe harbor for businesses. Meanwhile, employers need to ensure they are closely following requirements to protect workers and customers. Expect this issue to gain traction with the trial bar. More details.
Labor Activism – Over the past month or so, we’ve highlighted growing labor activism and just this week, Amazon warehouse workers went on strike. In the next few days, workers that have been on the sidelines (many receiving ~$15/hr in unemployment benefits until June 31) may be recalled to work as states reopen, which may make them ineligible for unemployment benefits regardless of whether or not they decide to return to work. For some workplaces, this could create a perfect storm for third-party labor organizations to organize workers, particularly if those groups are advocating for increased safety measures, hazard pay and more robust paid leave policies. More details.
SBA Loan Programs – The U.S. Congress appropriated more funds, an additional $484 billion, with $320 billion of that allocated for the Paycheck Protection Act and other existing Small Business Administration (SBA) loan programs. The legislation was immediately signed by President Trump. Meanwhile, the rules around the program continue to evolve. In response to public backlash, the Trump Administration released new guidance this week, in effect, preventing public companies from accessing funding through the SBA programs. Shake Shack, Ruth Chris and Potbelly’s among others became the public face of companies that were perceived to be taking advantage of the program. The episode is instructive in that the politics around accessing taxpayer funds will continue to evolve and brands need to ensure they are complying with the spirit of the law, not just the letter of the law. More details.
Restaurant Recovery Fund – The National Restaurant Association, among others, is advocating for the creation of a $240 Billion dedicated recovery fund. Restaurants operating prior to March 15, 2020 would be eligible to apply for the funds, not through existing loan programs, but through a special portal operated by the IRS. The money would be used for expenses such as payroll, rent, utilities, ongoing debt obligations, business insurance premiums and vendors. The association is also advocating for a “Healthy Restaurants” tax credit to help offset reopening expenses such as modifications made to dining rooms to accommodate social distancing and purchasing of personal protection equipment. More details.
Wages
Virginia – As expected, both the house and senate approved an amendment to delay the first scheduled increase in the minimum wage until May 2021.To Access Align's Analysis: Log In or Subscribe
Study – Researchers at the labor-allied Center for Wage and Employment Dynamics at Berkeley have, not surprisingly, determined that recent significant wage increases in six cities – Seattle, San Francisco, Oakland, San Jose, Chicago and Washington, DC – resulted in increases in pay but no widespread job losses.To Access Align's Analysis: Log In or Subscribe
Paid Leave
Labor Department – The department will begin enforcing the paid leave requirements created in the COVID II legislative package (the FFCRA) this week.To Access Align's Analysis: Log In or Subscribe
Labor Policy
Labor Department – Late last week, the Labor Department provided guidance for the new Pandemic Unemployment Assistance program to assist states with implementation of the program.To Access Align's Analysis: Log In or Subscribe
New York City – The city council is considering two measures for workers deemed essential, just cause firing legislation and a hazard or premium pay requirement.To Access Align's Analysis: Log In or Subscribe
Delivery
Chicago, IL – Legislation has been introduced in the city council to cap delivery commissions charged by third-party platforms at 5%.To Access Align's Analysis: Log In or Subscribe
Los Angeles, CA – The city council passed an emergency ordinance requiring employers of food delivery workers to provide protective gear like face masks, gloves and hand sanitizer to drivers.To Access Align's Analysis: Log In or Subscribe
Newton, MA – The town council is proposing a 15% cap on commissions charged by third-party delivery platforms.To Access Align's Analysis: Log In or Subscribe