Posts tagged Coronavirus (COVID-19).
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On December 28, 2022, New York Governor Kathy Hochul signed into law Senate Bill 9450, which added new enforcement provisions to the New York Health And Essential Rights Act’s (NY HERO Act) workplace safety committee requirements. The new law went into effect immediately upon the Governor’s signature.

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As featured in #WorkforceWednesday:  This week, we’re recapping some of the most significant changes that impacted employers in 2022.

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In June 2022, the California Division of Occupational Health and Safety (“Cal/OSHA”) proposed initial non-emergency standards for COVID-19 prevention in the workplace that were intended to replace the current COVID Emergency Temporary Standards (“ETS”) set to expire on December 31, 2022.  Following oral and written comments received from the public, the Cal/OSHA Standards Board (the “Board”) made further updates to the proposed non-emergency standard as of December 2, 2022 (the “Anticipated New Regulation”).  It is expected that the Board will vote on the Anticipated New Regulation, with no further modifications, at its upcoming meeting on December 15, 2022.  The Anticipated New Regulation would then become effective from January 1, 2023 through December 31, 2024.

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For more than two and a half years, employers across the country have navigated a nuanced web of legal requirements and guidance to safely operate during the global COVID-19 pandemic.  Recent updates to the legal landscape at the federal, state, and local level, however, have left many employers asking: is the COVID-19 pandemic finally over? For now, the answer remains “no.” This post discusses three key reasons why employers should continue to operate with the pandemic in mind.

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As featured in #WorkforceWednesday:  This week, we look at updates ranging from discrimination issues and COVID-19 guidance to local pay transparency law compliance.

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On September 20, 2022, Mayor Eric Adams announced that New York City’s COVID-19 vaccine mandate for private employers is ending.  The City’s mandate for municipal employees, however, will remain in effect.

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After two and a half years of promoting protocols aimed at reducing transmission of coronavirus, on August 11, 2022, the CDC eliminated its recommendation that people quarantine after exposure to COVID-19 and updated other recommendations. In recognition of how vaccination, boosters, and improved treatments have the reduced risk of severe illness, hospitalization, and death, the CDC has “streamlined”  its guidance regarding what actions people should take to protect themselves and others if they are exposed to COVID-19, become sick, or test positive for the virus.  The CDC now recommends that instead of needing to quarantine, someone who has been exposed to COVID-19 only needs to wear a high-quality mask for 10 days.  During the 10-day masking period, individuals (regardless of vaccination status) should monitor their symptoms and get tested after five days, regardless of symptoms.

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Back in March 2021, when it wasn’t easy for many people to get an appointment for an inoculation against COVID-19, New York State created an incentive for employees to get vaccinated.  A new provision was added to the Labor Law, requiring employers to provide paid leave time to employees to obtain each dose. As we previously noted, this statute was intended to sunset on December 31, 2022. However, as this year’s busy legislative session wound down, a bill extending the provision was delivered to Governor Kathy Hochul, who signed off on a 12-month extension of the law’s effective date, through December 31, 2023. Thus, New York employers will be required to provide their employees up to four hours of paid time off for each COVID-19 shot through (at least) the end of next year.

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As featured in #WorkforceWednesdayThis week, we look at the business, legal, and tax implications of making decisions on a trend that’s here to stay: remote work.

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As featured in #WorkforceWednesday:  This week, we look at two significant court decisions for employers and bring you a practical update on new bereavement leave rules in Illinois.

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Prompted by the widespread adoption and use of video-conferencing software following the COVID-19 pandemic, many employers have shifted toward video interviews to evaluate potential hires. Even as employers have begun to require in-office attendance, the widespread use of video interviewing has continued, because it is a convenient and efficient way to evaluate applicants. Some of the video interviewing tools used by employers incorporate the use of artificial intelligence (AI) in an effort to maximize the effectiveness of the interview process. Often, employers contract with third-party vendors to provide these AI-powered interviewing tools, as well as other tech-enhanced selection procedures.

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As featured in #WorkforceWednesday:  This week, we look at updated regulations in California and New York City and at the U.S. Department of Labor (DOL).

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On March 14, 2022, the EEOC issued a technical assistance document, The COVID-19 Pandemic and Caregiver Discrimination Under Federal Employment Discrimination Laws, which provides guidance as to ways equal employment opportunity laws enforced by the EEOC (“EEO laws”) may apply to caregivers. In conjunction with this, the EEOC added a Section I (“Caregivers/Family Responsibilities”)  to “What You Should Know About COVID-19,” its primary COVID-19 related guidance document. Enforcement guidance issued by the EEOC in 2007, previously addressed circumstances in which discrimination against caregivers might constitute unlawful disparate treatment. The EEOC has issued this new guidance in response to how the COVID-19 pandemic has particularly affected employees with caregiver responsibilities.

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New York employers seeking further relaxation of COVID-19 mitigation protocols after the recent lifting of a statewide mask mandate will have to wait. The designation of the virus as a “highly contagious communicable disease that presents a serious risk of harm to public health” that had been extended through February 15, 2022 was extended yet again. An order by the New York State Commissioner of Health continues the designation, made pursuant to the New York HERO Act, through March 17, 2022. This means that New York employers must continue to implement their safety plans ...

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On February 9, 2022, New York Governor Kathy Hochul announced that she would let the New York mask mandate lapse on its Thursday, February 10, 2022 expiration date. The Governor’s lifting of the statewide rule, which required businesses to either require proof of vaccination or universal masking indoors, does not yet include an end to mandatory masking in schools, despite a slew of action to that effect in neighboring states, including New Jersey, Connecticut, and Massachusetts. California is also allowing statewide masking requirements for businesses and many other indoor public spaces to expire on February 15, 2022.

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In connection with the new Emergency Temporary Standards (ETS) that went into effect on January 14, 2022, the California Division of Occupational Health and Safety (Cal/OSHA) has released the following COVID-19-related resources for employers:

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As we have previously explained, pursuant to Section 1 of the NY HERO Act, employers were required to prepare an airborne infectious disease exposure plan, and implement such plans when the New York State Commissioner of Health has made a designation that a highly contagious communicable disease presents a serious risk of harm to public health. Currently, such a designation is in effect until February 15, 2022. The New York State Department of Labor (“NYSDOL”) prepared model plans based on their published Airborne Infectious Disease Exposure Prevention Standard (“Standard”). On August 25, 2021, the NYSDOL published a set of emergency regulations, identical to the Standard, in the New York State Register. Although they had not been formally adopted, most businesses have been following the Standard.

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The  New York State Acting Commissioner of Health has extended the designation of COVID-19 as a highly contagious communicable disease that presents a serious risk of harm to public health under the NY HERO Act until February 15, 2022. Accordingly, the airborne infectious disease exposure prevention plans required under Section 1 of the Act must be kept in place through that date, at which point the Commissioner will review whether the designation should be continued.

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As explained in greater detail by our colleague Stuart M. Gerson, the Supreme Court of the United States handed down two major, and quickly decided, rulings on January 13, 2022. After hearing oral arguments only six days earlier, the Court issued two unsigned decisions per curiam. A 5-4 decision in Biden v. Missouri dissolved a preliminary injunction against enforcement of an interim final rule (“Rule”) promulgated by the Centers for Medicare & Medicaid Services (CMS), requiring recipients of federal Medicare and Medicaid funding to ensure that their employees are vaccinated against COVID-19.

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Ready for the “new normal”? Starting January 15, 2022, Boston’s “B-Together” Vaccine Mandate (“the mandate”) will require certain indoor establishments to require proof of COVID-19 vaccination for entry from employees, contractors, and customers.

  1. The mandate applies only to indoor portions of certain commercial food services, gym and fitness settings, and entertainment/recreation facilities in Boston

“Indoor food services” means indoor portions of food service establishments offering food and drink including restaurants, bars, and nightclubs. Fully enclosed “outdoor” areas are considered “indoor” under the policy. The mandate does not apply to open-air, outdoor areas, food service establishments offering food and/or drink exclusively for off-premises or outdoor consumption, or to food service establishments providing charitable food services, such as soup kitchens.

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As we previously reported, in December New York Governor Kathy Hochul issued a mandate requiring that masks be worn in all indoor public places, unless the business or venue requires proof of vaccination for entry.  As part of the state’s “Winter Surge Plan 2.0”, the mandate, which was initially set to expire on January 15, has now been extended for an additional two weeks, through February 1, 2022.

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On December 22, 2021, the New York State Department of Labor (NY DOL) issued the long-awaited proposed rule (Proposed Rule) regarding the workplace safety committees that are required by the New York HERO Act (HERO Act). While there is no current effective date for the Proposed Rule (which is first subject to a public comment period and a February 9, 2022 hearing), employers should become familiar with, and consider taking actions to timely comply with the Proposed Rule should it be adopted as currently drafted.

The HERO Act

In May of 2021, New York responded to workplace safety and health issues presented by the COVID-19 pandemic by enacting the HERO Act.  Since that time, the State has amended the HERO Act to allow the NY DOL additional time to create model safety standards for infectious disease exposure plans (“safety plans”) mandated by the HERO Act and to allow employers additional time for compliance.

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On December 27, 2021, the Centers for Disease Control and Prevention (CDC) announced an update to its isolation and quarantine guidance. Although the CDC’s update shortens both the isolation and quarantine periods, as described more fully below, the changes largely affect only asymptomatic individuals. Moreover, because local guidance may differ from the CDC’s recommendations, employers should keep in mind all applicable state and local requirements when deciding whether to amend their own rules.

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On the evening of Wednesday, December 22, 2021, the Supreme Court of the United States announced that it will hold a special session on January 7, 2022, to hear oral argument in cases concerning whether two Biden administration vaccine mandates should be stayed. One is an interim final rule promulgated by the Centers for Medicare and Medicaid Services (“CMS”); the other is an Emergency Temporary Standard (“ETS”) issued by the U.S. Department of Labor’s Occupational Safety and Health Administration (“OSHA”).  The CMS interim final rule, presently stayed in 24 states, would require COVID-19 vaccination for staff employed at Medicare and Medicaid certified providers and suppliers. The OSHA ETS, which requires businesses with 100 or more employees to ensure that workers are vaccinated against the coronavirus or otherwise to undergo weekly COVID-19 testing, was allowed to take effect when a divided panel of the United States Court of Appeals for the Sixth Circuit, to which the consolidated challenges had been assigned by the Judicial Panel on Multidistrict Litigation, issued a ruling on December 17, 2021, lifting a stay that had been previously entered by the Fifth Circuit. Multiple private sector litigants and states immediately challenged the decision.

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New York City’s private employer vaccine mandate became effective Monday. December 27, 2021 and, the City has updated its FAQs document and the Accommodations Guidance document (“Guidance”).

Guidance Updates: The Guidance was amended to reflect that the New York City Human Rights Law provides for accommodations for pregnancy and for victims of domestic violence, sex offenses, or stalking in addition to medical and religious reasons. The Guidance also clarifies that the examples for medical exemptions for vaccination were those that had been found worthy by the CDC and New York City Department of Health and Mental Hygiene. Further, the Guidance modifies some language on the religious accommodation checklist around the types of information needed to support religious accommodation requests. As we previously shared, the checklist the City recommends that employers maintain and complete in connection with each religious accommodation request does not alleviate an employer’s need to analyze such requests on a case-by-case basis.

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On Monday, December 20, District of Columbia Mayor Muriel Bowser announced a “situational update,” declaring a state of emergency due to the “Winter 2022 Surge” in COVID-19 cases driven by the Delta and Omicron variants. The District will combat the current rise in COVID-19 cases with a six-pronged approach outlined in an action plan (the “Plan”) published by the Mayor’s Office and implemented under Mayor’s Order 2021-147 (the “Order”).  The Plan includes expanding free testing programs, a new indoor mask mandate, and a vaccine mandate for city employees and contractors.

Expanded Testing

The District has been operating a program called “Test Yourself DC,” which provides free PCR testing kits for use at home. On December 20, 2021, nine new pick-up/drop-off sites were added to the program, making a total of 36 locations available. The Test Yourself locations are in addition to the eight public testing sites staffed by health professionals administering free PCR COVID-19 tests. Further, the program will be expanded to include “Test Yourself Express,” which will offer free at-home rapid antigen COVID-19 testing kits at eight DC public libraries. District residents who provide proof of residency will be permitted to get two free rapid tests per day and must report their results via an online portal.

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On December 13, 2021, the California Department of Public Health (“CDPH”) announced new Guidance for the Use of Face Coverings (“CDPH Guidance”), implementing a mandatory mask mandate for individuals (employees and patrons) in all indoor public settings, irrespective of vaccination status, beginning on December 15, 2021 through at least January 15, 2022.  The CDPH Guidance requires that masks be worn by all individuals over the age of two, unless exempt for disability-related or medical condition-based reasons, and recommends the use of surgical masks or higher-level respirators.

FAQs issued by the CDPH specify that the CDPH Guidance applies to workplaces, and clarify that local public health regulations remain in effect for localities that have previously adopted face covering measures prior to issuance of the CDPH Guidance that apply regardless of vaccination status. That is, the CDPH Guidance only applies to local health jurisdictions that do not have existing indoor masking requirements.  Notably, the San Francisco Department of Public Health (“SFDPH”) has taken the position, in its updated Order and FAQs, that its own masking rules remain in place—including exemptions for “stable cohorts” with 100% vaccination rates, among other criteria.  Marin County and Contra Costa County have taken similar positions regarding the applicability of local health order mask exceptions.  It remains unclear whether local mask exceptions apply given the CDPH Guidance masking rules.

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On December 14, 2021, the U.S. Equal Employment Opportunity Commission (EEOC) updated its guidance entitled “What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws,” Technical Assistance Questions & Answers (the “Guidance”). The most significant change is the addition of a long-awaited discussion of “long COVID,” which other federal agencies had identified as a disability in joint guidance issued back in July.

The Guidance now contains a new Section N, which addresses when COVID-19 can be considered a disability under each of the three standards of the Americans with Disabilities Act (ADA), i.e., “actual disability,” “record of disability,” or “regarded as an individual with a disability.”  Regardless of which definition may apply, the Guidance stresses the usual ADA rubric—that employers must conduct a fact intensive, case-by-case analysis to determine if an applicant or employee with COVID-19 or “long COVID” has a covered disability under the ADA.

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The Commissioner of the New York Department of Health has extended the designation of COVID-19 as a highly contagious communicable disease that presents a serious risk of harm to public health under the NY HERO Act until January 15, 2022, at which point the designation will be reviewed. Accordingly, the airborne infectious disease exposure prevention plans required under Section 1 of the Act must be kept in place through that date.

Although the New York State Department of Labor has published guidance stating that it would provide additional guidance by November 1, 2021 on Section 2 of ...

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Important guidance regarding COVID-19 testing in the workplace was recently issued by the Centers for Medicare & Medicaid Services (“CMS”) in the form of Frequently Asked Questions regarding Over the Counter (“OTC”) Home Testing and CLIA Applicability.

CMS regulates clinical laboratory testing pursuant to the federal Clinical Laboratory Improvement Act (“CLIA”). Generally, a laboratory or clinical setting (such as a physician’s office) must obtain CLIA certification to perform laboratory testing. Some OTC tests, however, are approved by the Food and Drug Administration (“FDA”) for home use and the new FAQs address the use of OTC home tests in the workplace.

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Governor Ron DeSantis recently signed HB 1-B, Ch. 2021-272, Laws of Fla. (the “Vaccination Exemption Law”), which prohibits every private employer from issuing COVID-19 vaccination mandates for its Florida employees without allowing employees to opt out for five specific exemptions: (i) medical reasons, including pregnancy or expectation of pregnancy, as determined by a physician, advanced practice registered nurse, or physician assistant; (ii) religious reasons, based on a sincerely held belief; (iii) COVID-19 immunity, based on prior COVID-19 infection, as documented by a lab test; (iv) periodic testing, agreed to by the employee and at no cost to the employee; or (v) based on compliant use of employer-provided personal protective equipment (“PPE”), agreed to by the employee.  Employers that receive a “completed exemption statement” must allow the requesting employee to “opt out” of the employer’s vaccination requirements.[1]  Employers will be found to have violated the Vaccination Exemption Law by failing to provide for exemptions in their COVID-19 vaccination mandate and terminating the employee—which includes “the functional equivalent of termination,” as defined below.

On December 2, 2021, the Florida Department of Legal Affairs issued a Notice of Emergency Rule (the “Rule”), further defining key provisions of the Vaccination Exemption Law.  Moreover, this Department (headed by the Attorney General) has issued guidance in the form of FAQs (the “Guidance”), outlining the employee complaint procedure for potential employer violations of the Vaccination Exemption Law.

The Rule

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As we previously reported, the Centers for Medicare and Medicaid Services’ (CMS) interim final rule (“the Rule”) requiring full COVID-19 vaccination for staff and others at Medicare- and Medicaid-certified providers and suppliers (i.e., the “vaccine mandate”) has been challenged in the U.S. District Courts for the Eastern District of Missouri (“the Missouri Court”) and the Western District of Louisiana, Monroe Division (“the Louisiana Court”).  As of the date of this writing, both Courts have granted preliminary injunctions placing the Rule on hold.

On November 29, 2021, the Missouri Court granted a preliminary injunction of the Rule, which applies to the coalition of ten states [1] that filed the challenge there. The following day, the Louisiana Court entered a similar injunction, which applies to the remaining forty states.

The Decisions

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As we previously reported, effective November 5, 2021, the Occupational Safety & Health Administration (OSHA) issued an Emergency Temporary Standard (ETS) requiring employers with 100 or more employees to ensure that covered employees are fully vaccinated or provide a negative COVID-19 test at least weekly.

On November 6, 2021, just one day after the OSHA ETS became effective, the U.S. Court of Appeals for the Fifth Circuit temporarily stayed the regulation in a case captioned BST Holdings, LLC v. OSHA. Inasmuch as the OSHA rule’s first milestones are December 5, when most ...

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*UPDATE, Nov. 11, 2021: Deadline for Compliance Extended to January 18, 2022, and Federal Guidance Updated. Stay tuned!

In response to the Path Out of the Pandemic: COVID-19 Action Plan announced by President Biden on September 9, and Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors (the “Order”), signed by the President the same day, the Safer Federal Workforce Task Force (“Task Force”) issued “COVID-19 Workplace Safety: Guidance for Federal Contractors and Subcontractors” (“Guidance”) on September 24, 2021 ...

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On Monday, October 11, 2021, Texas Governor Greg Abbott issued Executive Order GA-40 (the “Order”) prohibiting vaccine mandates by any entity. The Order, which was effective upon issuance, states: “No entity in Texas can compel receipt of a COVID-19 vaccine by any individual, including an employee or a consumer, who objects to such vaccination for any reason of personal conscience, based on a religious belief, or for medical reasons, including prior recovery from COVID-19.” It provides for a maximum fine of up to $1,000 per violation for any failure to comply with the order ...

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On July 13, 2021, Connecticut Governor Ned Lamont signed into law Public Act 21-189, An Act Requiring Employers to Recall Certain Laid-Off Workers in Order of Seniority (the “Act”), which requires hotels, lodging houses, food service contractors, and building service enterprises with at least 15 employees to notify qualified laid off employees, whose lay-offs were due to lack of business, or a reduction or furlough of the employer’s workforce, due to the COVID-19 pandemic, about available positions. This obligation applies to those laid off employees (i) who were employed ...

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On September 24, 2021, in response to the Path Out of the Pandemic: COVID-19 Action Plan announced by President Biden on September 9, and Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors (the “Order”), signed by the President the same day, the Safer Federal Workforce Task Force (“Task Force”) issued “COVID-19 Workplace Safety: Guidance for Federal Contractors and Subcontractors” (“Guidance”). The Guidance, which the Director of the Office of Management and Budget approved, is intended to ensure that COVID-19 ...

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On September 17, 2021, Los Angeles County Department of Public Health (LACDPH) announced a public health order (“the Order”) requiring proof of COVID-19 vaccination for all on-site employees and visitors at indoor bars, breweries, wineries, distilleries, nightclubs, and lounges throughout the county. Effective Thursday, October 7, 2021 at 11:59 P.M., proof of vaccination will be required to enter these establishments, and will be strongly recommended, although not required, for restaurants with indoor dining. Patrons who do not provide proof of vaccination may still be ...

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On September 23, 2021, the New York State Department of Labor (“NYSDOL”) released an update to its general model airborne infectious disease exposure prevention plan (“model plan”) for employers’ use in complying with the NY HERO Act. Specifically, the model plan’s language regarding face coverings and physical distancing was modified by:

  • distinguishing between workplaces where all individuals on the premises, including, but not limited to, employees, are fully vaccinated and those workplaces where not all individuals are vaccinated in terms of whether face ...
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Supreme Judicial Court Clarifies Breadth of COVID-19 Tolling Order

During the early days of the COVID-19 pandemic, the Supreme Judicial Court of Massachusetts (“SJC”) entered an order tolling the statutes of limitations applicable to civil claims. Although some practitioners interpreted the order as tolling only those statutes of limitations set to expire while the order was in effect, in Shaw’s Supermarkets, Inc. v. Melendez, SJC-13054 (Sept. 3, 2021), the SJC rejected such a narrow interpretation and held that its order tolled all statutes of limitations, regardless ...

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On September 9, 2021, President Biden announced that his Administration is implementing a six-pronged, comprehensive national strategy to ensure that all available tools are being used to combat COVID-19.  The plan addresses: (1) vaccinating the unvaccinated; (2) further protecting the vaccinated; (3) keeping schools safely open; (4) increasing testing and requiring masking; (5) protecting the economic recovery; and (6) improving care for those with COVID-19.  The first strategy is germane to employers.

Vaccinating the Unvaccinated – To accomplish this, the U.S ...

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On August 6, 2021, New Jersey Governor Philip Murphy signed Executive Order 252 (“Order 252”) requiring health care and high-risk congregate settings to maintain a policy requiring workers to either provide adequate proof of vaccination or submit to weekly COVID-19 testing. Although Governor Murphy declared an end to the state’s Public Health Emergency in June, he retained the authority to issue orders related to vaccine distribution, administration, and management as well as COVID-19 testing and data collection. Following the CDC’s vaccine guidance, Order 252 ...

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Counties across California are making a detour on the road to easing COVID-19 restrictions.

Los Angeles County  

On July 16, 2021, Los Angeles County issued an Order of the Health Officer (“the Order”) that requires all persons to wear face masks while in all indoor public settings, venues, gatherings, and businesses (i.e., office workplaces, retail, restaurants, theaters, meetings), with limited exceptions.  In indoor settings where there is close contact with unvaccinated individuals, the Order recommends that people consider wearing a higher level of protection, such as ...

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On June 15, 2021, New York State celebrated reaching 70 percent of its adult population having received at least one vaccination dose. As a result, the State lifted most of its New York Forward industry-specific COVID-19 guidelines—including social gathering limits, capacity restrictions, cleaning and disinfection, health screening, and gathering contact information for tracing—making them optional for most employers. The State has archived its industry-specific reopening guidance, which employers may, but are not required to, continue to follow[1].

What ...

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On June 11, 2021, Illinois and the City of Chicago entered Phase 5 of its five-stage reopening plans. As part of the transition, Illinois released Executive Order 2021-12 (the “Phase 5 Reopening Order”) and new Phase 5 Guidance. Chicago also issued Phase 5 Recommendations and provided a helpful graphic that provides additional recommendations, which apply to all businesses. For Illinois and Chicago businesses, Phase 5 means a lifting of many COVID-19 restrictions across industries. Although businesses can start operating closer to normal, Phase 5 is a new normal that ...

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It has been an active week in California with the release of new statewide face covering guidance, the alignment of Los Angeles County and San Francisco with this guidance, and the withdrawal of the revised Cal/OSHA Prevention Emergency Temporary Standards by the California Division of Occupational Safety and Health Standards Board (the “Board”).

Of most importance, covered employers and workplaces must continue to comply with the more restrictive original Cal/OSHA COVID-19 Prevention Emergency Temporary Standards (ETS) that have been in place since November 2020, not

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On May 21, 2021, consistent with Governor Newsom's intention to fully reopen California by June 15, the California Department of Public Health (“CDPH”) released “Beyond the Blueprint for Industry and Business Sectors” (“Beyond the Blueprint”), outlining the state’s latest reopening guidelines and restrictions.  Importantly, as reflected in the CDPH’s announcement, most employers (as discussed below) must still follow the more restrictive Cal/OSHA COVID-19 Prevention Emergency Temporary Standards (ETS) (“ETS Standards”) (which we wrote about ...

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In the wake of last week’s updated guidance from the Centers for Disease Control and Prevention (CDC) easing social distancing and mask requirements for fully vaccinated people, on May 19, 2021, New York State issued its own guidance that, effective immediately, mostly adopts those new recommendations. As of May 19, most New York employers may allow individuals who have been fully vaccinated to stop wearing a mask and social distancing in their workplace.

Importantly, every business also has the discretion to continue requiring consistent rules regarding social distancing and ...

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During a May 10, 2021 press conference, Governor Andrew Cuomo announced his intention to propose legislation aimed at stopping discrimination against those who choose to get vaccinated against the COVID-19 virus. Unlike many states that are introducing legislation to prevent discrimination against those who are unvaccinated, this bill would protect those who are vaccinated.  The Governor referenced a report that certain summer camps are not allowing campers to attend or staff members to work at the camp if they have received the vaccine. Audio of his remarks is available here.

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The City of Chicago recently enacted the Chicago COVID-19 Vaccine Anti-Retaliation Ordinance.

The Vaccine Anti-Retaliation Ordinance allows workers in Chicago – including independent contractors -- to get vaccinated during a scheduled “shift,” requires pay for hours taken to get vaccinated (if an employer mandates the vaccine), and prohibits retaliation for getting vaccinated during a scheduled shift.

Specifically, the Chicago Vaccine Anti-Retaliation Ordinance provides as follows:

  1. An employer may not require that a worker only be vaccinated during ...
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On May 3, 2021, New York Governor Andrew Cuomo and New Jersey Governor Phil Murphy announced a significant easing of COVID-19-related capacity restrictions on businesses in their respective states. Governor Ned Lamont of Connecticut, who joined the other two governors in the announcement, had previously ordered a comparable lifting of capacity restrictions in his state.

Specifically, effective May 19, New Jersey and New York will remove most capacity limitations on businesses, which are currently based on a percentage of maximum capacity, and replace them with limitations ...

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Our colleagues Denise Dadika and Vidaur Durazo of Epstein Becker Green have a new post on the Health Employment and Labor blog that will be of interest to our readers: "Changing Floors: Minimum Wage Increases for Health Leaders to Consider".

The following is an excerpt:

2021 is set to be a landmark year for the number of jurisdictions raising wage floors across the country. According to a National Employment Law Project report, as of January 1, 2021, 20 states and 32 municipalities raised their minimum wage. By the end of 2021, the report tracks that as many as 24 states and 50 ...

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As we recently reported, as of March 12, 2021, all private employers in New York must provide their employees with up to four hours of paid leave to get each COVID-19 vaccination shot. The State has now released guidance on the new law (“Law”) in the form of Frequently Asked Questions (“FAQs”). Most importantly, the FAQs clarify that the Law does not create any retroactive benefit rights to paid vaccination leave. Accordingly, while an employer is free to apply the law retroactively if it wishes, the Law mandates that “only employees receiving vaccinations on or after March ...

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President Biden’s January 21, 2021 Executive Order (EO) on COVID-19 tasked the Occupational Safety and Health Administration (OSHA) to: launch a national enforcement program, review and correct any shortcomings in their prior enforcement strategies and to determine whether any Emergency Temporary Standards (ETS) were necessary and, if so, to issue an ETS by March 15, 2021.  The prior Administration had not issued an ETS, and was severely criticized by the Congress and labor unions.

On March 12, 2021, OSHA fulfilled some of the EO directives by publishing two COVID-19 ...

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The Illinois Department of Labor (IDOL) has issued March 2021 guidance for employers on “Compensation, Paid Leave and the COVID-19 Vaccine,” advising employers on providing employees with time off and flexibility in order to get the first (and as necessary, the second dose) of the COVID-19 vaccine.

Mandatory Vaccination Programs

The IDOL guidance states that pursuant to the Illinois Minimum Wage Law and the federal Fair Labor Standards Act, if an employer requires employees to get vaccinated, then the time the employee spends getting the vaccine “is likely compensable,” ...

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The New York City Council is planning to evaluate how effectively both the City, as an employer, and private employers disseminated and implemented COVID-19 workplace guidance over the past year with the goal of strengthening how the public and private sectors manage future public health emergencies. On February 28, 2021, the Council enacted Int. 2161-2020 (the “Law”), which establishes a board to review the workplace health and safety guidance that agencies and private employers issued to their respective employees during the COVID-19 pandemic. The newly formed board will ...

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Our colleagues Susan Gross Sholinsky and Jenna Russell of Epstein Becker Green have a new post on the Health Employment and Labor blog that will be of interest to our readers: "Make Sure It’s a Good Fit: The CDC Issues Revised COVID-19 Mask Guidance."

The following is an excerpt:

On February 10, 2021, the Centers for Disease Control and Prevention (“CDC”) issued updated guidance and a report emphasizing the importance of a wearing a mask that fits tightly over the face to slow the spread of COVID-19.  The report, which provides the basis for the CDC’s updated guidance, is ...

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The COVID-19 pandemic has changed dining habits across the world, as governments have shut down and restricted indoor and outdoor dining.  Even where restrictions have eased, many avoid sit-down dining out of concern for COVID-19 exposure and rely on take-away for their restaurant meals.  Clearly, the COVID-19 pandemic has limited dining options.

France, however, has decided to provide workers with a new, previously forbidden, dining option, although it remains to be seen how palatable it will be to French employees.  The Labor Ministry has decreed that to contain the spread of ...

Blogs
Clock 3 minute read

On January 29, 2021, the Occupational Safety and Health Administration (OSHA) published revised COVID-19 guidance to help employers identify risks and determine appropriate control measures to protect workers from COVID-19 exposure. The guidance entitled, "Protecting Workers: Guidance on Mitigating and Preventing the Spread of COVID-19 in the Workplace"  “(the “Guidance”) is not mandatory, but it is likely a precursor to enforcement standards that are also under review by OSHA.

On his first full day in office, President Biden directed OSHA to issue this revised ...

Blogs
Clock 6 minute read

On January 14, 2021, President-elect Joe Biden released his $1.9 trillion emergency stimulus plan, designed primarily to guide the country through the next medical and economic stages of the COVID-19 pandemic.  The American Rescue Plan (“ARP”) also includes non-COVID-19 related proposals, such as a mandatory $15 per hour minimum wage and funding to improve cybersecurity.

The following is a non-comprehensive overview of the ARP, which will require Congressional legislative passage.

Blogs
Clock 2 minute read

On December 27, 2020, President Donald Trump signed into law a $900 billion pandemic relief bill that provides extended relief for qualified student loan borrowers. Known as the “Heroes Act,” the stimulus package is a win for borrowers seeking student loan repayment from their employers.

The initial $2.2 trillion stimulus package that Congress passed in March 2020 – the “Cares Act” –temporarily expanded Section 127 of the Internal Revenue Code (the “IRC”) to permit employers to make tax-free payments of up to $5,250 during calendar year 2020 towards employees’ ...

Blogs
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As of December 29, 2020, Michigan employers are no longer required to permit employees to self-quarantine for up to 14 days due to alleged close contact with an individual displaying COVID-19 symptoms. Recent amendments to Michigan’s Anti-Retaliation COVID-19 law reflect updated CDC guidance reducing the recommended length of quarantine for individuals who suspect exposure to COVID-19. Previous CDC guidance recommended that individuals quarantine for up to 14 days following close contact with an individual displaying COVID-19 symptoms. Now, the CDC recommends a 10-day ...

Blogs
Clock 4 minute read

As many employers approach their one-year anniversary of working from home, it is obvious that the COVID-19 pandemic has permanently changed both how and where we work. By 2025, an estimated 36.2 million Americans will be working remotely—a staggering 87% increase from pre-pandemic levels.  Moreover, surveys reveal that company leaders plan to permit employees to work from home at least part of the time upon reopening their offices. However, a remote workforce poses a challenge for employers that must display certain notices and posters in their workplaces to advise employees of ...

Blogs
Clock less than a minute

As we have noted previously, many countries have introduced creative new approaches to address the economic realities of the COVID-19 pandemic.  Because employees continue to work from home and employers reconsider whether employees must return to the workplace at all, jurisdictions have implemented – and now are extending – measures to accommodate the needs and interests of both employers and employees in this ever-changing and evolving employment environment.

As we have highlighted, Luxembourg is an example of a country that has sought to develop solutions with its ...

Blogs
Clock 9 minute read

The first COVID-19 vaccines have started being shipped across the U.S. with the expectation that millions of doses will be administered over the next few weeks, with many times more over the coming months.  This is unequivocally good news and reason for optimism.  Meanwhile, however, the pandemic continues to spread nationwide and the numbers are rising rapidly.

The unabated second wave spike of COVID-19 infections arriving with the holiday season and our traditional time for gatherings has led governors, mayors and health departments across the country to tighten restrictions on ...

Blogs
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In advance of the December holiday season, the CDC has issued a revised guidance on recommended quarantine periods.

The revised guidance provides shortened quarantine periods for individuals who have been in close contact with someone who has COVID-19. While the CDC maintains that the 14-day quarantine period provides greater protection for reducing transmission of the coronavirus, the agency has now provided two shorter options, which it says are designed to help alleviate the personal economic hardship associated with the extended quarantine period.

Pursuant to the ...

Blogs
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With New Jersey experiencing a second wave spike of COVID-19 infections and with holiday season gatherings upon us, on November 30, 2020 Governor Phil Murphy issued Executive Order 204 (“EO 204” or the “Order”) tightening restrictions on outdoor gatherings and pausing indoor practices and competitions for youth and adult sports.

Indoor Youth and Adult Sports

With limited exception, EO 204 prohibits youth and adult indoor sports practices, competitions, and other organized sporting activities from December 5, 2020 until January 2, 2012. The prohibition will not affect ...

Blogs
Clock 7 minute read

The rising number of COVID-19 cases in New Jersey has prompted Governor Phil Murphy to issue two new Executive Orders aimed at tightening restrictions on businesses and activities, with a goal of slowing the spread of the virus: (1) Executive Order 194 (“EO 194”) sets limits on indoor operations for bars/restaurants, prohibits indoor interstate youth sports competitions, and clarifies occupancy limits for personal care services; and (2) Executive Order 196  (“EO 196”) tightens prior restrictions on indoor and outdoor gatherings.

EO 194

Indoor/Outdoor Dining

EO 194 ...

Blogs
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Just one week after ordering new business restrictions to combat the recent surge of COVID-19, Governor Larry Hogan announced further mitigation measures in Maryland that will dial back business operations.

On November 17, 2020, Governor Hogan issued Executive Order 20-11-17-01, which amends and restates Executive Order 20-11-10-01 (which we previously summarized here).  The amended order goes into effect at 5:00 p.m. on Friday, November 20, 2020.

The amended order, titled “Regulating Certain Businesses and Facilities and Generally Requiring Use of Face Coverings,” has ...

Blogs
Clock 3 minute read

The final installment of a 10-part series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

Did COVID-19 end sexual harassment?

Did a global pandemic that sent humanity indoors, forcing many of us to work remotely (if at all) and to be socially distant while avoiding handshakes and touching obviate the need for such an obvious rule?  Well, not exactly.  I have been advising clients on this rule and the ripe environment for harassment claims since the pandemic began, and in candor, my position has been met with varying degrees of skepticism (yes, you can still see ...

Blogs
Clock 4 minute read

Michigan recently announced two COVID-19 developments that will impact employers and their workplaces.  Most recently, the Michigan Department of Health and Human Services (MDHHS) issued new restrictions for business operations in the state that are set to take effect on November 18 and last through December 8, 2020 (the “Three Week Pause Order”).  The Three Week Pause Order followed an announcement late last week by the Michigan Occupational Safety and Health Administration (MIOSHA) of a State Emphasis Program (SEP) focused on in-door activities and venues, including ...

Blogs
Clock 6 minute read

As COVID-19 cases continue to rise across the nation, the District of Columbia, Maryland, and Virginia all recently have implemented additional mitigation measures that impact business operations.  Below is a summary of the key restrictions of which businesses within the DMV should be aware.

District of Columbia

The District of Columbia maintains a compilation of Phase Two Guidance to assist all businesses in reopening (or staying open) responsibly.  Recently, on November 6, 2020, Mayor Muriel Bowser issued Mayor’s Order 2020-110, which modifies previous quarantine ...

Blogs
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As featured in #WorkforceWednesday:  This week, workplace safety and liability issues are top of mind while employers also look ahead to the tax issues telecommuting will cause this tax season.

Video: YouTubeVimeoMP4Instagram.

Blogs
Clock 4 minute read

As the COVID-19 pandemic continues to affect workplaces throughout the world, employers are considering new ways to ensure a safe workplace when employees return to the office. Outside the US, employers must balance their duty of care to protect the health and safety of all their employees with safeguarding employees’ privacy and complying with data protection regulations. Many employers already have analyzed whether they may require or request employees to (i) submit to COVID-19 testing at the workplace, (ii) certify certain health information regarding exposure to ...

Blogs
Clock 8 minute read

As COVID-19 cases once again surge across the country, Washington, D.C. employers must remember to provide both paid and unpaid leave under the new District of Columbia Coronavirus Support Temporary Amendment Act of 2020 (D.C. Law 23-130) (the “Act”).  Although passed in July 2020, the Act formally became effective on October 9, 2020 and will remain in effect through the end of the declared COVID-19 public health emergency—currently December 31, 2021.  The law repeals the emergency laws that we previously blogged about, but carries over the additional obligations to provide ...

Blogs
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As featured in #WorkforceWednesday: The Centers for Disease Control and Prevention broadened its definition of “close contact.” Now, spending a total of 15 minutes within six feet of an infected individual over a 24-hour period counts as close contact. Previously, it was an exposure period of 15 consecutive minutes.  Attorney Denise Dadika explains what this change means for employers.

Video: YouTubeVimeoMP4Instagram.

Blogs
Clock 3 minute read

As the pandemic continues into 2021, many employers are contending with their workers’ significantly increased caregiving responsibilities.  Parents – many without viable day care or other childcare options – must try to balance work with the challenges of caring for their children and overseeing their education (and entertainment). Other employees find themselves at the forefront of caregiving for sick family members and for family members at high risk for serious illness, if they become infected by COVID-19.

Recent data has revealed the disproportionate impact that ...

Blogs
Clock 4 minute read

October has brought a weekly flurry of changes to Michigan’s COVID-19 legal landscape. [1] On Thursday October 22, 2020, Governor Whitmer added to this recent activity by signing three bills into law that provide employers with significant liability protection and employees with job protections related to COVID-19.

Employer Protections: Liability Shield

Titled the “COVID-19 Response and Reopening Liability Assurance Act,” HB 6030 provides employers with immunity from liability for a “COVID-19 claim” as long as the employer acted in compliance with all federal ...

Blogs
Clock 7 minute read

Part 9 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

If the Rules of the Road: Return to Work in the Time of COVID-19 series has given you any takeaways, it should be that it pays to be prepared, to be safe, and to anticipate workplace issues before they arise. This means taking stock of what has happened in the past year and what challenges lie ahead. There is almost nothing the pandemic has not affected in our lives, or in business and the workplace and the challenges have been daunting. Challenges have included, coping with illness, the stressors of ...

Blogs
Clock 6 minute read

At the onset of the COVID-19 pandemic, Governor Ned Lamont declared a public health and civil preparedness emergency in Connecticut.  In connection with this declaration, Governor Lamont has issued numerous Executive Orders throughout the pandemic.  The Executive Orders were set to expire on September 9, 2020, if they were not terminated earlier.

On September 1, 2020, Governor Lamont extended the existing public health and civil preparedness emergency until February 9, 2021. In addition, on September 8, 2020, Governor Lamont issued Executive Order 9A, which reissues and extends ...

Blogs
Clock 6 minute read

Part 8 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

If there has been one, singular guiding principle or mantra that has sustained us, challenged us, and in some cases, inspired us over these last few months, this is it: “Don’t Waste the Crisis.” It is also the mantra that will propel us forward.

Flashback to the eve of Governor Cuomo’s Executive Order in March, shutting down New York State and New York City as the nation and the world watched. In the countdown leading up to its effective date, there was a palpable feeling of existential ...

Blogs
Clock 6 minute read

The U.S. Department of Labor’s Occupational Safety and Health Administration (“OSHA”) recently updated its COVID-19 Frequently Asked Questions (“FAQ”) regarding employers’ reporting obligations during the COVID-19 pandemic.

As previously reported, effective as of May 26, 2020, OSHA has declared COVID-19 a recordable illness for all employers.  Thus, employers are responsible for recording workplace cases of COVID-19 on a OSHA 300 Log if the case:  (1) is confirmed COVID-19, as defined by Centers for Disease Control and Prevention (“CDC”); (2) is ...

Blogs
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In this installment of Epstein Becker Green’s “Class Action Avoidance” webinar series, attorneys Lauri F. Rasnick and Frank C. Morris, Jr. address potential discrimination class actions related to office reopenings, the changing way in which we work, and the impact that the pandemic has had on individuals in protected classes.

As many employers think about reopening their offices and other workspaces, they should consider how they do so very carefully in order to avoid decisions that may adversely impact certain protected groups or lead to disparate decision making.

Blogs
Clock 5 minute read

Part 7 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

What can jazz teach us about COVID-19? What lessons can we learn from the great masters like Miles Davis, John Coltrane, and Duke Ellington at this very moment?

As it turns out—a lot.

In a unique way, jazz, a truly American, musical art form, perhaps perfectly embodies this moment. Jazz is about democracy – about different people, from different backgrounds, experiences, ethnicities, coming together – inclusively – to make music and make things happen – to swing. Jazz is about ...

Blogs
Clock 3 minute read

Outside of the United States, terminating employees can be difficult even in “normal” times.  The concept of “at-will” employment is uniquely American, and generally, employers in non-US jurisdictions only may terminate employment for “cause” or for other statutorily permitted reasons.  Moreover, terminated employees in many countries are entitled to statutory notice, severance and other benefits, which is far more the exception than the rule for US employees.

Because of the COVID-19 pandemic, many countries have increased employee job protections even ...

Blogs
Clock 5 minute read

On September 9, 2020, California Governor Gavin Newsom signed Assembly Bill 1867 (“AB 1867”), mandating supplemental paid sick leave for employees of companies with 500 or more employees. AB 1867 fills gaps left open by the federal Families First Coronavirus Response Act (“FFCRA”) (previously discussed here) and the Executive Order signed by Newson on April 22, 2020, which only applied to essential food workers (previously discussed here).

The sick leave portions of the law are effective immediately and covered employers must make the leave available no later than ...

Blogs
Clock 7 minute read

Part 6 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

Simple in theory. Challenging in practice.

While we all intuitively know that we should stay home when we are feeling unwell, a fall 2019 survey suggests just the opposite—that approximately 90% of workers generally “push through” and come to work anyway. The reality is that employees come to work when they are sick for a myriad of reasons: to stay atop long to-do lists, meet production goals, because they think the business would crumble without them, or that somehow taking a sick day and ...

Blogs
Clock 17 minute read

On September 8, 2020, the Equal Employment Opportunity Commission (“EEOC”) released updates to its What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws Technical Assistance Questions and Answers (“FAQs”), addressing questions largely focused on return-to-work questions and concerns such as permissible and impermissible inquiries, reasonable accommodation and confidentiality of employee health information.

Notable additions to the FAQs include clarification regarding the types of questions employers may ask as employees ...

Blogs
Clock 11 minute read

Part 5 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

By now, those who have been following this series know the basics. You’ve formulated (or are in the process of formulating) a “return to work” plan, which includes, among other things, implementing policies and guidelines consistent with CDC recommendations (wear masks), as well as other best practices that most of us learned, or should have learned, by the time we were potty-trained (wash your hands), if not by the time we were in elementary school (no touching).

But once businesses ...

Blogs
Clock 8 minute read

As has been true for so many issues arising from the COVID-19 pandemic, growing concerns about safely voting in the 2020 elections are beginning to permeate the workplace, prompting employers nationwide to create or revise policies to address employee apprehensions about voting amidst a pandemic. Time to Vote, a self-described “business-led, nonpartisan coalition that aims to increase voter participation in the U.S. elections,” founded by numerous major companies, reports that, as of August 27, 2020, more than 700 companies, representing about two million workers, have ...

Blogs
Clock 3 minute read

Following up on our recent post about a business interruption insurance decision by a Washington D.C. court, a federal judge in Missouri ruled last month, in Studio 417, Inc., et al. v. The Cincinnati Ins. Comp., No. 20-cv-03127-SRB, that businesses can sue their insurance carrier for business interruption losses caused by COVID-19.

Plaintiffs, owners of a hair salon and various restaurants (the “Insureds”) purchased an all risks policy from Cincinnati Insurance Company (the “Insurer”). As a result of losses sustained due to COVID-19, the Insureds sought business ...

Blogs
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As featured in #WorkforceWednesday:  Employers are reevaluating plans after Centers for Disease Control and Prevention (CDC) reversals, and the U.S. Department of Labor (DOL) offers clarification on wage and hour issues related to the pandemic.

Video: YouTubeVimeoMP4Instagram.

Blogs
Clock 3 minute read

Part 4 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

We have said this before, but we will say it again: in the workplace, there should be no touching – ever. The COVID-19 pandemic just provides another reason to follow the advice we give in the anti-harassment context, that employees should maintain distance and not touch others.

No Touching, Ever – Not Even For Handshakes

In almost a long forgotten time, pre-COVID-19, it was a natural tendency for employees to use handshakes, handshakes-plus, and hugs as a way to build rapport and ...

Blogs
Clock 4 minute read

Part 3 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19.

Whether physically in the office or not, regularly washing your hands should already be a routine practice. However, this innate rule is especially important, and recommended by the Center for Disease Control (“CDC”), to help prevent the spread of COVID-19 and to maintain safe, healthy and respectful workplaces.

Wash Your Hands…All the Time

Everyone should already be washing his or her hands – all the time. This is a cardinal hygiene rule that everyone learns in elementary school ...

Blogs
Clock 2 minute read

Prompted by the many new telework or remote work arrangements that have arisen in response to COVID-19, on August 24, 2020, the Wage and Hour Division of the U.S. Department of Labor (“DOL”) issued Field Assistance Bulletin No. 2020-5 (“Bulletin”) to provide guidance regarding employers’ obligation “to exercise reasonable diligence in tracking teleworking employees’ hours of work.” The guidance, which includes citations to the Fair Labor Standards Act (“FLSA”), the DOL’s interpretive regulations, and federal case law, does not break new ground; ...

Blogs
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Featured in #WorkforceWednesday:  As employers plan for workers to return to work, utilizing COVID-19 liability waivers is one idea that businesses are thoroughly considering. Attorney Jimmy Oh discusses the risks and effectiveness of these waivers.

Video: YouTubeVimeoMP4Instagram.

 

Blogs
Clock 3 minute read

The beginning of the school year has added to a mire of uncertainty of how to manage work and family in our current COVID-19 world. Some schools have reopened to full-time in-person classes, while others have adopted full-time remote learning; still others have opted a hybrid model that mixes the two, and some give parent the choice of whether to send their children to school or have them login. Added to this, decisions once made are subject to reversal, if new COVID-19 cases enter the picture.  So now, on top of everything else that the COVID-19 crisis has affected, working parents must try ...

Blogs
Clock 10 minute read

Part 2 of a series featuring our video Rules of the Road: Return to Work in the Time of COVID-19. 

Who would have believed that months into this global pandemic, after the innumerable and unspeakable loss to human life, to global economies, and to our own sense of selves and normalcy – that the relatively straightforward issue of whether to wear a mask to curb the spread of this virus would remain such a hot button topic.  And yet, here we are.

The overwhelming science – yes, science – reported and confirmed by scientists, physicians, and leading health experts across the globe – is ...

Blogs
Clock 5 minute read

On August 6, 2020, in Rose’s 1 LLC, et al. v. Erie Insurance Exchange, a District of Columbia trial court granted an insurer’s cross motion for summary judgment on the issue of whether COVID-19 closure orders constitute a “direct physical loss” under a commercial property policy. Plaintiff insureds (“Insureds”) own several restaurants in Washington D.C. that were forced to close and suffered serious revenue losses stemming from the Mayor’s orders to close non-essential businesses and ordering people to stay home. As a result, the Insureds made claims to Defendant Erie Insurance Exchange (the “Insurer”) under their policies that included coverage for “loss of ‘income’ and/or ‘rental income’” sustained “due to partial or total ‘interruption of business’ resulting directly from ‘loss’ or damage” to the property insured. The policy also stated that it “insures against direct physical ‘loss.’”

Dictionary Definitions Open to Interpretation

As the Court framed the issue, “[a]t the most basic level, the parties dispute whether the closure of the restaurants due to Mayor Bowser’s orders constituted a ‘direct physical loss’ under the policy.” To support their argument, the Insureds relied on dictionary definitions of “direct” as “[w]ithout intervening persons, conditions, or agencies; immediate;” and “physical” as pertaining to things “[o]f or pertaining to matter, or the world as perceived by the senses; material as [opposed] to mental or spiritual.” The policy defined “loss,” as “direct and accidental loss of or damage to covered property.”

The Insureds relied on these definitions to make three arguments. First, they argued that the loss of use of their restaurant properties was “direct” because the closures were the direct result of the Mayor’s orders without intervening action. The Court rejected that argument because those orders commanded individuals and businesses to take certain actions and “[s[tanding alone and absent intervening actions by individuals and businesses, the orders did not affect any direct changes to the properties.”

Second, the Insureds argued that their losses were “physical” because the COVID-19 virus is “material” and “tangible,” and because the harm they experienced was caused by the Mayor’s orders rather than diners being afraid to eat out. The Court also rejected that argument because the Insureds offered no evidence that COVID-19 was actually present on their properties at the time they were forced to close and the mayor’s orders did not impact the tangible structure of the properties.

Third, the Insureds argued that the policy’s definition of “loss” as encompassing either “loss” or “damage,” required the insurer to “treat the term ‘loss’ as distinct from ‘damage,’ which connotes physical damage to the property,” and thus “loss” incorporates “loss of use.” The Court rejected that argument and held that the words “direct” and “physical” modify the word “loss” and therefore any “loss of use” must be “caused, without the intervention of other persons or conditions, by something pertaining to matter—in other words, a direct physical intrusion [onto] the insured property.” The Court held that the Mayor’s orders did not constitute such a direct physical intrusion.

Blogs
Clock 3 minute read

On July 24, 2020, Connecticut Governor Lamont issued Executive Order JJJ (“E.O. JJJ”), which creates a presumption that employees who contracted COVID-19 in the early days of the pandemic contracted it at work and are eligible for workers’ compensation benefits.

Pursuant to E.O. JJJ, there shall be a “rebuttable presumption” that an employee, who makes a claim for benefits under the Workers’ Compensation Act, and who missed one or more days of work between March 10, 2020 and May 20, 2020, inclusive, due to a diagnosis of COVID-19 or symptoms that were diagnosed as ...

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