Businesses whose operations have been shut down due to the coronavirus crisis rightly look to their business interruption or business income policies for relief. As a general matter, in order to trigger coverage those policies require (1) direct physical loss or damage; (2) to covered property: (3) arising from a covered peril; and (4) resulting in the suspension of the business’ operations.

In cases where coverage is triggered, an insured business may be entitled to recover the net income it would have received but for the interruption and its operating expenses during the time ...

The below message has been posted with permission from the Beverly Hills Chamber of Commerce. 

Tomorrow, Friday, March 27^th, the Los Angeles City Council is having an emergency remote meeting to consider a new policy to require businesses to lay-off and rehire employees businesses based on seniority.  Under this proposal, businesses need to have “just cause” to terminate an employee, businesses must lay off employees based on seniority and if businesses recall employees it must be done based on seniority.

Click here to see Item No. 2 on the LA City Council ...

The Department of Labor released the required notice for the Families First Coronavirus Response Act today.  All employers covered by the FFCRA must post the notice in a conspicuous place to advise all current employees of their rights under the Act.  The FFCRA, which was passed by Congress and signed by President Trump last week, expands employee leave laws in response to the COVID-19 crisis.  (For more information on the FFCRA, see earlier “What Employers Need To Know About The Families-First Coronavirus Response Act” article on this blog.) 

Since many workforces are currently ...

To assist California employers in understanding the possible application of benefits available to workers in response to the COVID-19 crisis under both state and federal law, we provide the following handy chart:

Click Here to view a print-friendly version of the chart. 

During this unprecedented time of uncertainty, landlords, financial institutions, vendors, suppliers, and other creditors will undoubtedly be affected. Due to the closure of most businesses which are considered non-essential, it is inevitable that ordinary business obligations such as rent, payments for equipment or inventory financing, employees, and creditors will not be made. It is just a matter of time before business owners default, and creditors will be faced with a problem that unless immediately addressed will only become larger. Some of the obvious signs that a ...

There is a fair amount of confusion among California businesses regarding Governor Newsom’s “stay home” order and which facilities should remain open.  Unfortunately, Executive Order N-33-20 does not provide much guidance. It does, however, refer to the list of federal government's critical infrastructure sectors posted by the Department of Homeland Security and except those individuals “needed to maintain the continuity of operations” of those sectors. In addition, the state’s website clarifies that critical government services, schools, childcare, and ...

The coronavirus pandemic has presented challenges for employers trying to remain responsive to the crisis but also struggling to absorb the burden it has imposed on their businesses. With much anxiety, employers have also been anticipating a new law, H.R. 6201, to go into effect that would expand family and medical leave requirements to cover COVID-19. As of yesterday, Congress passed and President Trump signed the final version of H.R. 6201, titled the Families First Coronavirus Response Act.

The Act will take effect on April 1, 2020 and will remain effective until December 31 ...

As employers struggle to cope with the impact of coronavirus 2019 (COVID-19), we have encountered a surprising number of employers who have been led to believe that a “furlough” is an employer option that can be implemented without regard for various laws that might otherwise apply. It is not. To be blunt, while the term “furlough” seems to be a more employee-friendly word for what many employers are doing, there is no magic to it. Indeed, until the California Legislature or Congress pass more comprehensive COVID-19 relief legislation, employers must still comply with all ...

In an effort to address some of the issues presented by California’s WARN Act in connection with the COVID-19 crisis, Governor Newsom has issued Executive Order N-31-20 partially suspending certain provisions of Cal-WARN.  As we reported here, the wording of California’s WARN Act exposes employers temporarily closing or engaging in layoffs due to COVID-19 to liability for back pay, the value of benefits, penalties of $500 per day and attorneys’ fees.  Unlike the federal WARN Act, California’s version has no exception for unforeseen business circumstances and requires ...

Given the level of concern regarding the coronavirus, providing employees with reliable information and establishing both a prevention plan and a plan to follow if illness occurs is a good way to avoid panic and help ensure a healthy workplace. 

The Centers for Disease Control (CDC) recently held a press conference to provide an update on the current status of the coronavirus (COVID-19). The CDC published a fact sheet as well as steps to follow if you are sick with the coronavirus. Both publications can be distributed to employees along with a memo outlining steps for prevention and ...