COVID has numerous implications on businesses and economic activities. Enterprises can defend their work and investments by ensuring that they are complying with the law when letting go of employees, providing a safe workplace, and reducing liability due to the virus.
Over 99% of all businesses are small enterprises, and they employ half of the workforce in America. With the pandemic taking over every aspect of life and economic activities, businesses must protect their interests and investments. COVID-19 affects legal regulations, and will influence the way companies operate and do their transactions. By adapting to new polices and laws, businesses can keep trading and operating.
Labor Law and Layoffs
The pandemic has put everyone into an upheaval. Businesses do their best to survive and weather the storm by redefining their strategies, adapting to the current situation, and even diversifying. Unfortunately, these actions are not enough for some enterprises, resulting in layoffs. Although the law states that large employers must provide advance notice of mass dismissal, there are exceptional situations like the coronavirus that prevent companies from giving warnings of closures or furlough. Under the Worker Adjustment and Retraining Notification (WARN) Act, employers with 100 or more full time employees must give notice to workers at least 60 days before a plant closing or mass layoff that will last at least six months, or pay hefty fines.
There are, however, exceptions to the rule, such as natural disasters, circumstances including dramatic and unexpected economic slump, or government-ordered closings that were not foreseeable 60 days before the layoff. In the case of COVID-19, following emergency orders to close nonessential businesses, it was not possible to provide the advance notice requirement. However, even when exceptions apply, employers must still give adequate notifications as far as possible.
Providing a Safe Environment
In other cases, layoffs and redundancies can be avoided. However, your enterprise might need to scale down activities. Once things pick up, staff presence might be increased. However, due to the health crisis, it is essential that your workplace provides a safe environment, reducing the risks for workers to get ill or contract the virus. At present, the Occupational Safety and Health Administration (OSHA) does not have specific standards for dealing with COVID-19. However, it requires employers to define whether an infection was contracted at the workplace.
Alas, it is difficult to determine the source of the virus because many factors should be considered. For example, a worker may have continuous contact with another employee who tested positive, or the job entails dealing with the public, increasing the risks and suggesting that the sickness was work-related. Hence, the best defense of the business owners will be to reduce exposure to the virus. There are steps taken by various states to release employers from liability to prevent abusive litigation. The proposed Safeguarding America’s Frontline Employees To Offer Work Opportunities Required to Kickstart the Economy Act, or the SAFE TO WORK Act, is one such initiative that will make it harder for plaintiffs to sue for injuries due to a COVID-19 infection. Plaintiffs must prove with convincing evidence that the defendant caused the injuries. They must also demonstrate gross negligence.
In the meantime, before the bill can pass Congress, or in the absence of federal or state laws to limit liability, lawyers can help businesses draft liability waivers for patrons of their organization. The waiver must be clear, demonstrating that the signee was informed of all known risks when entering their premises and were given proper warnings.
COVID has numerous implications on businesses and economic activities. Enterprises can defend their work and investments by ensuring that they are complying with the law when letting go of employees, providing a safe workplace, and reducing liability due to the virus.
Join the conversation!