As state governments issue stay-at-home orders, employment lawyers across the country have been digesting new employment laws, assisting clients in managing layoffs, furloughs, and leaves of absence, and working to keep up with a changing employment landscape. Federal legislation has imposed dramatic, although temporary, changes to the way employers manage their employees during this trying time. The Families First Coronavirus Response Act (“Families First Act”) and its regulations impose, for the first time under federal law, paid leave obligations. The CARES Act changes the economics of layoffs, furloughs and reduced hours for employers.
On March 18, 2020, President Trump signed the Families First Act into law. The Act includes provisions to assist employers and employees during these extraordinary times. The Families First Act creates two forms of paid leave related to the Covid-19 crisis: two-week paid leave (“Emergency Leave”); and expansion of the Family and Medical Leave Act (“FMLA”) to provide twelve weeks of paid leave (“Expanded FMLA Leave”).
On April 23, 2020, Governor Wolf announced that all businesses in the construction industry in the Commonwealth are permitted to resume “in-person operations” beginning Friday, May 1, 2020. Construction industry businesses include those in new construction, renovation, and repair, as well as land subdivision and design-related field/project site activities.
The Wolf Administration has issued guidance (the “Guidance”) for all construction industry businesses and their employees in anticipation of resuming operations while at the same time mitigating the spread of COVID-19. The Guidance provides universal protocols for all construction activity, as well as specific additional guidance for residential, commercial, and public construction projects. If you own or manage a construction industry business, you should review these guidelines and ensure such safety protocols are in place before starting up again.
With individuals residing in Allegheny County, Bucks County, Chester County, Delaware County, Monroe County, Montgomery County, and Philadelphia County ordered to stay at home with only certain limited exceptions, and non-life sustaining businesses ordered to close, business owners struggle with what to do next. The full text of the Governor’s order and other related information can be found here. While there are many unanswered questions and additional guidance is continually being issued, business owners do have resources available to them.
Business interruption insurance covers a business’ losses resulting from a direct physical loss or damage to property. Accordingly, coverage under such a policy generally will not trigger unless there is a direct physical loss to the business’s property. In some circumstances, loss of income due to a disaster-related closing of a business’ physical location is covered.
The coronavirus pandemic has already caused massive financial impacts across nearly every industry in the Commonwealth of Pennsylvania. Unemployment claims have skyrocketed, essentially all physical business locations are closed, and industry is struggling to convert to remote operations. Unfortunately, it appears the financial crisis is just beginning.
Pennsylvania Business owners have probably heard that Governor Tom Wolf ordered that all "non-life-sustaining" businesses in Pennsylvania must close their physical locations to slow the spread of COVID-19. This order went into effect last evening. You may be wondering whether your business is “life-sustaining” and may stay open. There is little guidance from the Governor’s office, other than the chart published by the Governor.