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Re-Opening Risks and Liabilities for Businesses in the Era of COVID-19

Emily J. Meister

As businesses throughout North Carolina begin to plan for and undertake re-opening, concern for the safety of customers and employees is a central focus for many. Prudent businesses should also pause to consider and understand their potential liability to those customers and employees they serve and utilize. A business’ risk, however, isn’t straightforward or simple, and assessing it requires analyzing both federal and state laws and legal causes of action. It is further impacted by who the business is dealing with – a customer or an employee. For example, businesses should be cognizant of the following potential avenues of liability:

Occupational Safety and Health Administration (“OSHA”)

o Generally speaking, OSHA regulations require employers to provide their employees with reasonably safe working conditions free from known dangers. In light of the pandemic, OSHA has periodically released guidance to employers on steps that can and should be taken to promote a safe work environment and to minimize risk of exposure to COVID-19 in the workplace. OSHA, in conjunction with the CDC (Centers for Disease Control and Prevention), has further provided guidance on what to do if you (i.e., the employer) has a known occurrence of COVID-19 in the work environment. These guidelines and recommendations continue to be updated as the pandemic evolves and more is learned, and can be found at https://www.osha.gov/SLTC/covid-19/ and https://www.cdc.gov/coronavirus/2019-ncov/community/reopen-guidance.html.

o While OSHA regulations do not provide a private cause of action that can be brought by impacted or wrongfully endangered employees, it does allow such individuals to file a complaint, which may trigger costly investigations and penalties. Moreover, adverse findings resulting or coming from any OSHA investigation can often be used in other legal proceedings brought by employees or customers (for instance, in workers compensation or negligence proceedings).

Families First Coronavirus Response Act (“FFCRA”)

o As more people venture out of their homes, experts warn that new cases of infection will occur and may actually increase, potentially sickening the employees upon which businesses rely to function. The FFCRA continues to run through December 30, 2020, and provides employees of covered employers with paid sick and other leave related to COVID-19. While tax credits are available to most employers, employers should be prepared to address or cover the costs of such potential leave.

Negligence and Workers Compensation

o Common law imposes upon most businesses a duty of reasonable care not to unnecessarily expose their customers, suppliers or other persons visiting their establishment to dangerous situations and to warn of any hidden dangers. Those who breach such duty or are otherwise negligent would, in most instances, normally be liable to customers and visitors for the resulting damages suffered. Or, if the injured party was an employee, the employee may be able to pursue and recover his or her damages through workers compensation proceedings.

o To help alleviate the potential liability of essential businesses, the North Carolina General Assembly recently took action. Pursuant to N.C. Gen. Stat. § 66-460, essential businesses providing services shall be immune from civil liability to consumers, customers, users and employees for injury or death caused by COVID-19 contracted through such essential business unless such injury or death was the result of gross negligence, reckless misconduct or intentional infliction. This statute does not, however, prevent or prohibit employees from asserting claims under workers compensation policies in effect and would not negate or do away with any potential liability to employees, customers or visitors under applicable federal laws.

As your business continue to navigate the phases of re-opening and manage the impacts of COVID-19 has had on their business, Black, Slaughter and Black’s attorneys remain on the job and ready to you stay on top of developments, minimize risks and maximize opportunities for the success of your business.

*Please be aware that federal, state and local responses to COVID-19 are changing quickly. The advice set forth herein is based upon the facts, guidance and laws available today. Future developments may render this article and advice outdated.

Author: Emily J. Meister
Articles have been Reprinted with permission from Black, Slaughter, Black.

* These articles and related content on this website are provided without warranty of any kind and in no way constitute or provide legal advice. You are advised to contact an attorney specializing in Association Management for legal advice related to your specific issue and community. Some articles are provided by thrid parties and online services. Display of these articles does in no way endorse the products or services of Community Association Management by the author(s).

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