COVID-19
Federal Relief Package – The U.S. Congress approved the second COVID-19 relief package, which includes a paid leave mandate (more details are included in the Paid Leave section below). Lawmakers are already working on a third relief package. Details are being negotiated but the bill is likely to include direct payments to Americans earning under $100,000, a delay in tax reporting for the year, government-backed loans and other relief for some impacted industries and employers. More details.
Business / Public Space Closures – In the course of just a week, social spacing recommendations from the CDC evolved into restaurant / retail closures as public health officials and policymakers took action in an attempt to break the chain of COVID-19 transmission. Nearly 30 states have now limited restaurant operations to takeout, delivery or drive-thru and / or are requiring reduced occupancy limits in restaurants. More states and localities are likely to follow. More details.
Shelter-In-Place Orders – A number of cities, notably in California, Colorado, New York and Washington, have begun ordering citizens to shelter-in-place. California is the first state to enact such an order state-wide. New York has enacted a similar requirement, although it’s not being characterized as shelter-in-place. In both cases, citizens may only move within the community for designated purposes. Restaurants and grocers have qualified as essential and picking up food or groceries is qualified as a designated purpose. Delivery also has been allowed. Some restaurant operators have been providing their workers letters detailing that they work for an “essential” business. Expect more state and localities to enact shelter-in-place mandates in the coming weeks. It’s worth noting that New Rochelle, NY, the epicenter of an early outbreak, has had some of the strictest restrictions in the country and restaurants and grocery stores have continued to operate within the National Guard’s containment zone. More details.
Paid Leave Considerations – Employers need to be mindful that a restaurant closure due to a public health emergency may, in some jurisdictions, trigger a paid leave requirement. In fact, Seattle is currently debating amending its law to explicitly require that obligation of employers (more details are included in the Paid Leave section below) and we’ve seen other jurisdictions take similar steps. More details.
Furloughs / Layoffs – A large number of hotels and restaurants began temporary furloughing or permanently laying off workers this week. In a number of states, a record number of applicants filed for unemployment insurance over the past week. More hospitality industry layoffs are expected due to forced closures. Large employers need to be mindful of the federal WARN Act that places requirements on employers related to mass layoffs. Many states have state-level “mini-WARN Acts.” Some states and localities also have notice requirements.
Industry Efforts for Relief – The economic impact to the hospitality industry has been devastating. The American Hotel and Lodging Association released a report documenting the impact and the National Restaurant Association outlined needed relief in a letter to the White House. Both organizations, along with the National Retail Federation and the International Franchise Association, have been lobbying federal, state and local lawmakers for relief. President Trump spoke with hospitality leaders this week on the impact. Expect relief to come in a variety of forms from deferred tax obligations to loans. More details.
Wages
Universal Basic Income – Andrew Yang made the once-fringe concept a centerpiece of his insurgent presidential campaign. And, the U.S. Congress seems poised to take the unprecedented step of making direct payments to nearly all Americans in response to COVID-19. While those payments are likely to cease once the threat of the virus dissipates, there will be a lasting impact on policy making conversations.
Paid Leave
Federal – The second COVID-19 relief package, as expected, included a paid sick leave and paid family leave mandate. The requirement is effective no later than April 2 and running through Jan. 1. The Labor Department is currently drafting the regulations which will be released prior to the effective date.To Access Align's Analysis: Log In or Subscribe
New York – The governor signed legislation requiring employers at companies with more than 100 employees to grant up to 14 days of paid leave and guaranteed job protection to employees who have coronavirus symptoms.To Access Align's Analysis: Log In or Subscribe
Seattle, WA – The city council passed a new law that will allow people to take paid sick and safe leave from work if a family member’s school or place of care is closed.To Access Align's Analysis: Log In or Subscribe
Activism
One Fair Wage Campaign – The campaign, led by Restaurant Opportunities Center founder Saru Jayaraman which is focused on eliminating tips throughout the industry, launched what it’s describing as a “massive online fundraising effort” for an emergency cash assistance fund to support tipped and service workers nationwide facing economic hardship amid coronavirus-driven closures of restaurants and other businesses where they work.To Access Align's Analysis: Log In or Subscribe
Delivery
Texas – The governor loosened delivery laws in that state to allow restaurants to deliver alcohol.To Access Align's Analysis: Log In or Subscribe
Packaging
Single-Use Packaging – A number of press outlets this week have noted that single-use packaging, which until recently has been demonized in many jurisdictions, is now playing a critical role, ensuring the food and groceries can be picked up or delivered with limited human interaction.To Access Align's Analysis: Log In or Subscribe
Taxes
Seattle, WA – Two city council members are advocating that the city immediately pass an “Amazon tax” on large employers and use the revenue to fund coronavirus relief efforts.To Access Align's Analysis: Log In or Subscribe