COVID-19: PA Insurance Department Warns of Risks, Increased Liability and Lack of Insurance Coverage due to Non-Compliance of Business Closure Orders

Earlier today on May 11th, PA Insurance Commissioner Jessica Altman reminded businesses of the importance of complying with Governor Tom Wolf and Department of Health Secretary Rachel Levine’s orders – for counties in both the red and yellow phases.

In addition to the critical public health objectives, Commissioner Altman warned non-compliant businesses defying the governor and secretary’s business closure orders that many insurance policies contain provisions that exclude coverage for businesses or individuals engaging in illegal acts or conduct. These exclusions may apply to property coverage, liability coverage, advertising injury coverage, and a host of other essential coverages.

“Businesses and residents rely on insurance coverage to protect them from liability, pay for covered losses, and compensate those who may be injured or harmed,” said Altman. “It is the duty of every business and resident in Pennsylvania to ensure that they and the public at large are provided with the maximum level of protection afforded by insurance. Any actions that could potentially create coverage gaps are the antitheses of the civil duty required of all residents during these times of emergency.”

This reminder was offered to all Pennsylvania businesses and residents, regardless of in what county they reside.

Comments were also directed at restaurants and their liquor licenses – reminding PA restaurant owners that restaurants that reopen for dine-in service in counties that have not been authorized to reopen will be at risk of losing their liquor license.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Dominica Anderson, Eve Klein, Elizabeth Mincer or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

COVID-19: PA announces Emergency Assistance Program (“EAP”) for lower income families

Department of Human Services (DHS) Secretary Teresa Miller today announced on May 8, 2020, an Emergency Assistance Program (EAP) to help low-income families who lost wages experiencing financial challenges due to the COVID-19 pandemic. Families who qualify will be eligible for a one-time payment to assist them in meeting basic needs and help them secure more stable financial footing in the future.

The program will use existing Temporary Assistance for Needy Families (TANF) funds to provide support to low-income families who qualify. The program will be open to families with a child under the age of 18 or a woman who is currently pregnant.

In order to qualify, families must have at least one person in the household who was employed as of March 11, 2020 and experienced an hour or wage reduction of at least 50 percent for two weeks or more or lost employment entirely due to the public health crisis.

Families must meet income limits of 150 percent of the Federal Poverty Guidelines and have no more than $1,000 in a savings or checking account.

Household               Monthly Income                Annual Income Limit
1                                           $1,595                                            $19,140
2                                           $2,155                                            $25,860
3                                           $2,715                                            $32,580
4                                           $3,275                                            $39,300
5                                           $3,835                                            $46,020
6                                           $4,395                                            $52,740
7                                           $4,955                                            $59,460
8                                           $5,515                                            $66,180
9                                          $6,075                                             $72,900
10                                        $6,635                                             $79,620
Each + Person                    $560                                               $6,720

Qualifying families will be issued a one-time grant equal to two months of TANF benefits. The average monthly TANF grant for a family of three is $403, so a qualifying family of three would receive a one-time grant of $806 through the program. Information on monthly grants by household size and county is available online here. Funds will be issued through an electronic benefit transfer (EBT) card.

The emergency assistance application is available online at www.compass.state.pa.us. Families should be prepared to submit all necessary documentation with their application to expedite processing and avoid having to apply again. Applications will be accepted beginning Monday, May 11 through June 12 or until all funds are expended.

Secretary Miller also provided an update on the number of public assistance applications received by DHS. Applications are generally down from where they were before County Assistance Offices began to close in Pennsylvania. Applications did begin to increase to pre-closure levels towards the second half of April but are declining again.

Pennsylvanians can apply for Medicaid, the EAP, the Supplemental Nutrition Assistance Program (SNAP), the Children’s Health Insurance Program (CHIP), and other public assistance programs at any time through DHS’ online COMPASS application at www.compass.state.pa.us.

Those who prefer to submit paper applications can mail documents to their local County Assistance Office (CAO) or leave documents in a CAO’s secure drop box, if available. CAOs are still closed to the public, but mail and drop boxes are being monitored so applications can be processed.

Visit pa.gov for a “Responding to COVID-19” guide or the Pennsylvania Department of Health’s dedicated Coronavirus webpage for the most up-to-date information regarding COVID-19.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Sharon Caffrey, Eve Klein, Elizabeth Mincer or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

COVID-19: PA Plan now allows re-opening of Construction, Vehicle Dealerships and Real Estate Industry per recent Executive Orders

While Governor Wolf extended the “Stay at Home” order until June 4, 2020 by Amendment to his earlier order, he also updated guidance on opening businesses in PA.  As you are likely aware, PA is employing a regional and industry-specific approach to reopening “non-life-sustaining” businesses.

In counties that have been designated as in the Red Phase, businesses permitted to conduct in-person operations are:

1) those listed as life sustaining according to the Governor’s and Secretary’s Non-Life Sustaining Business Closure Orders (as amended),
2) those that received an exemption from those Orders from the Department of Community and Economic Development, or
3) those permitted to conduct in-person operations pursuant to a subsequent applicable Order or amendment to those Orders from the Governor and Secretary including:

a. Construction Industry;
b. Vehicle Dealerships; and
c. Real Estate Industry.

In counties that have been designated as in the Yellow Phase, all businesses, except those categories specifically excluded in the Governor’s Plan to Reopen Pennsylvania and the Governor’s and Secretary of Health’s orders, are permitted to conduct in-person operations, so long as they strictly adhere to the requirements of this guidance.

In counties that have been designated as in the Green Phase, all businesses (including those restricted or prohibited in the Yellow Phase) are authorized to conduct unrestricted in-person operations as long as the businesses follow CDC and Department of Health guidelines.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, David Augustin, Elizabeth Mincer or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

 

COVID-19: PA Extends Eviction and Moratorium Protections through July 10th for Residential Transactions

Governor Tom Wolf was joined by Attorney General Josh Shapiro to announce that he signed an executive order that protects Pennsylvanians from foreclosures or evictions through July 10. The action builds on a Pennsylvania Supreme Court order which closed court eviction proceedings until May 11 and ensures no renter or homeowner will be removed from their home for 60 more days.

“At a time when people need to stay home to protect their heath, they should not have to worry about losing their homes,” said Governor Wolf. “Ensuring that people can remain in their homes will help them to better protect their loved ones. It gives families the comfort of knowing they will have a place to live while all of us work together to fight COVID-19 and prepare to move Pennsylvania forward.”

In almost all circumstances, renters and homeowners are required to continue making monthly payments.

The Wolf Administration provided recommendations last week to stem foreclosures, evictions and help people experiencing homelessness. The Department of Human Services activated the Commonwealth’s Sheltering Taskforce and is working with local and state partners to coordinate resources for people without housing. The Department of Community and Economic Development is also accepting applications for Emergency Solutions Grants to assist with the rapid rehousing of people experiencing homelessness, street outreach, homelessness prevention, and emergency shelter activities.

PHFA is also taking action to help homeowners and renters. The agency has stopped foreclosures and evictions and is offering forbearances with late fee waivers to homeowners with a PHFA mortgage who are experiencing a financial hardship because of COVID-19. PHFA also developed a list of renters’ rights and responsibilities to clarify the situation for apartment residents and is working with landlords and property managers to distribute it to renters. PHFA is also encouraging Low-Income Housing Tax Credit building managers to be flexible on rent payments and to waive late fees for tenants whose employment has been affected by the crisis. 

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, David Augustin or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

COVID-19: PA Outlines Plans to Create a Commonwealth Civilian Coronavirus Corps (“CCCC”)

As Pennsylvania plans to safely reopen the economy and recover from COVID-19, Governor Tom Wolf announced the creation of the Commonwealth Civilian Coronavirus Corps (“CCCC”), a public service initiative that will support efforts this fall to increase testing and contact tracing and provide critical new job opportunities in the public health sector.

Per Governor Wolf, “the CCCC will serve as a public service program that will expand our ability to conduct contact tracing and testing and mobilize Pennsylvanians to contain COVID-19.”

The Wolf Administration’s continued efforts to reopen Pennsylvania will, in its own words, depend on its ability to expand the availability of COVID-19 testing and develop a robust infrastructure to conduct surveillance and contact tracing. This work will allow Pennsylvanians to effectively monitor and respond to new cases and quantify mitigation efforts.

As PA plans to ramp up these efforts in the coming months, the CCCC would help bring these efforts to fruition by:

• Partnering with local public health agencies, community organizations, and the nonprofit community to expand Pennsylvania’s existing testing and contract tracing initiatives;

• Leveraging additional resources to fund testing and contact tracing initiatives;

• Exploring creative ways to recruit experienced Pennsylvanians with health care and public health experience to support this initiative; and

• Coordinating existing resources deployed by the commonwealth, including community health nurses and county health departments who are currently conducting testing and contact tracing throughout the state.

The CCCC is also hoped to provide for a unique opportunity for PA to recruit and train COVID-19-impacted dislocated and unemployed workers into public service for contact tracing roles, which would address Pennsylvania’s health and economic needs.

To foster this new workforce, the CCCC would:

• Engage partners in the workforce development system, existing allied health training programs, and AmeriCorps programs to build and strengthen a public health workforce across the commonwealth;

• Leverage existing workforce development resources to recruit, train, and connect the public health workforce with employment opportunities; and

• Engage public health and health care employers to connect trained workers with long-term career opportunities.

According to Governor Wolf said. “Through this public service initiative, Pennsylvanians will have opportunities in the months ahead to join a collective effort to ensure that we emerge from this pandemic a stronger Commonwealth.”

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Eve Klein, Sharon Caffrey, Sandra Stoneman or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

COVID-19: PA – $324 Million Dollars awarded to 31 hospitals under the HELP Program

PA Governor Tom Wolf announced that nearly $324 Million in funding has been awarded to 31 hospitals across the Commonwealth through the “Hospital Emergency Loan Program” or HELP, which provides short-term financial relief as hospitals combat the surge of COVID-19 cases in their area.

“As Pennsylvania continues to practice social distancing, we have successfully flattened the curve, but we know that our fight against COVID-19 is far from over,” said Gov. Wolf. “This funding will allow our hospitals to hold steady in that fight with the peace of mind that they have access to the resources they need to provide critical care to their communities.”

The loan package was made available to the Commonwealth’s hospitals to provide immediate financial support for working capital to ensure that these facilities have sufficient personnel, equipment, and personal protective equipment.

The funding was dispersed by the Pennsylvania Infrastructure Investment Authority (PENNVEST) and is being administered by the Pennsylvania Department of Community and Economic Development (DCED) through the Pennsylvania First Program (PA First).

Pennsylvania health care facilities licensed as hospitals by the Pennsylvania Department of Health under the Health Care Facilities Act of 1979 that are eligible to receive federal grant funding through the CARES Act are eligible for HELP.

For the most up-to-date information on COVID-19, Pennsylvanians should visit on.pa.gov/coronavirus.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Delphine O’Rourke, Sharon Caffrey or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

 

COVID-19: PA Announces Methodology for Phased Re-Opening Approach (50 new cases per 100,000 of population for 14 days)

Governor Wolf elaborated on the PA Department of Health metrics for Re-Opening and included an example to aid in calculation.

A target goal for reopening has been set at having fewer than 50 new confirmed cases per 100,000 population reported to the department in the previous 14 days. So, for example, an area with a population of 800,000 people would need to have fewer than 400 new confirmed cases reported in the past 14 days to meet the target. An assessment will determine if the target goal has been met. The administration will work closely with county and local governments to enable the communities to reopen and transition back to work.

The target data goal is not the only metric to be met before reopening a region. Additionally, the Commonwealth is also focusing on ensuring that there is:

• Testing – Enough testing available for individuals with symptoms and target populations such as those at high risk, health care personnel and first responders.

• Case Investigation – Robust case investigation and contact tracing infrastructure in place to facilitate early identification of cluster outbreaks and to issue proper isolation and quarantine orders.

• Safeguards – Identification of an area’s high-risk settings including correctional institutions, personal care homes, skilled nursing facilities and other congregate care settings, and assurance that facilities have adequate safeguards in place such as staff training, employee screening, visitor procedures and screening and adequate supplies of PPE to support continued operations.

PA will be relying on a modeling dashboard under development and evaluation by Carnegie Mellon University to take a regional and sector-based approach to re-openings, the easing of restrictions and public health response.

The full PA plan is available here: https://www.governor.pa.gov/process-to-reopen-pennsylvania

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Eve Klein, Elizabeth Mincer, Matt LoBello or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

COVID-19: PA defers payment obligations and maturity dates by 3 months on loans from various Commonwealth Agencies (NOT a reduction in amount owed)!

Today, Department of Community and Economic Development (DCED) Secretary Dennis Davin announced that the Pennsylvania Industrial Development Authority (PIDA), Pennsylvania Minority Business Development Authority (PMBDA), and Commonwealth Financing Authority (CFA) are deferring loans and that the maturity dates and amortization schedules of all applicable loans are extended by three additional calendar months.

“As we look to the future for a phased reopening of Pennsylvania’s economy, it is imperative that we provide relief to businesses affected by the administration’s stay-at-home order,” said Sec. Davin. “Businesses statewide have been cooperative and made sacrifices for the health and safety of their communities, and we are committed to supporting them through the next steps ahead.”

PIDA borrowers with payments due in April, May, and June of 2020 are deferred. All other terms and conditions of all applicable loans remain unchanged.

PMBDA borrowers with payments due in April, May, and June of 2020, including principal, interest, and any associated feeds are deferred. Accrual of interest that would be included with deferred payments is suspended. All other terms and conditions of all applicable loans remain unchanged.

CFA borrowers except for PENNWORKS loans, with payments due in April, May, and June of 2020, including principal, interest, and any associated fees are deferred. Accrual of interest that would be included with deferred payments is suspended. All other terms of all applicable loans remain unchanged.
DCED continues to update its website with financial and other resources.

Businesses seeking further guidance and clarification from DCED can also contact its customer service resource account at ra-dcedcs@pa.gov.

For the most up-to-date information on COVID-19, Pennsylvanians should follow www.governor.pa.gov and www.doh.pa.gov.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Matt LoBello or the attorney in the firm with whom you are regularly in contact.

 

COVID-19: PA Extends Closure Order until May 8th but will relax Auto Sales, Liquor Sales and some Construction Activities Restrictions (May 1)

On April 20, Governor Tom Wolf extended Pennsylvania’s stay-at-home order until May 8, 2020.

The governor indicated he would be using a region-by-region approach that is data-driven and will include strict social-distancing measures as he considers reopening parts of Pennsylvania.

However, he announced three actions that offer some flexibility to businesses, including permitting curbside pickup of orders at state liquor stores, allowing auto sales online and opening what he said were various construction activities statewide on May 1st. More specific guidelines will be released at a later date.

To read the full text of this Duane Morris Alert, please visit the firm website.

COVID-19: Update to Various State Construction Closure Orders – Continued Shifting Sands as States Refine and Modify Closure Orders and Essential Business Definitions

This list is current as of April 14, 2020 (4:00 p.m. EST) and is and Update to an earlier Alert we posted on April 3rd. Please note that these closure orders are changing almost daily so please make sure you are checking the applicable state in question when considering a closure question:

California:

California ordered that all workers must stay home, except workers deemed “Essential Critical Infrastructure Workers.”

Generally, construction workers are “essential” to critical infrastructure. Therefore, construction companies may continue to operate and construction workers may go to work.

Specifically designated as essential are:

• Workers who support the operation, inspection and maintenance of essential public works facilities and operations, including bridges, water and sewer main breaks, fleet maintenance personnel, construction of critical or strategic infrastructure, construction material suppliers, traffic signal maintenance, emergency location services for buried utilities, maintenance of digital systems infrastructure supporting public works operations and other emergent issues;
• Engineers, technicians and associated personnel responsible for infrastructure construction and restoration, including contractors for construction and engineering of fiber optic cables;
• Construction workers who support the construction, operation, inspection and maintenance of construction sites and construction projects (including housing construction);
• Workers such as plumbers, electricians, exterminators and other service providers who provide services that are necessary to maintaining the safety, sanitation, construction material sources and essential operation of construction sites and construction projects (including those that support such projects to ensure the availability of needed facilities, transportation, energy and communications; and support to ensure the effective removal, storage and disposal of solid waste and hazardous waste).

Los Angeles, San Francisco and San Diego:

These cities in California have each taken separate positions. Some have a more limited view of which construction is essential (e.g., San Francisco) and as such permit construction to remain operational in narrow circumstances, which is at odds with the state’s position on construction. Care should be taken in these cities to evaluate the state executive order in the context of city orders, noting that in most cases the more restrictive interpretation is likely to rule the day.

Delaware:

Delaware ordered the closure of all nonessential businesses.

Construction, however has been deemed to be an “essential” category. Therefore, construction companies may continue to operate and construction workers may go to work.

Specifically designated as essential in the order are:

• Workers who support the operation, inspection and maintenance of essential public works facilities and operations, including bridges, water and sewer main breaks, fleet maintenance personnel, construction of critical or strategic infrastructure, traffic signal maintenance, emergency location services for buried utilities, maintenance of digital systems infrastructure supporting public works operations and other emergent issues;
• Engineers, technicians and associated personnel responsible for infrastructure construction and restoration, including contractors for construction and engineering of fiber optic cables.
• Workers who are engaged in the construction of residential and nonresidential structures or infrastructure, and any workers who provide critical maintenance to residential or nonresidential structures;
• Businesses that supply materials and hardware to those engaged in the construction of residential or nonresidential structures;
• Workers involved in activities related to the design and apportionment of residential and nonresidential structures.

Washington, D.C.:

Washington, D.C., ordered the closure of all nonessential businesses except for “Minimum Basic Operations.”

“Construction and Building Trades” are, however, classified as “Essential Businesses” per the order. Therefore, construction companies may continue to operate.

The order specifically includes the following as essential under that category: plumbers, pipefitters, steamfitters, electricians, boilermakers, exterminators, roofers, carpenters, bricklayers, welders, elevator mechanics, businesses that sell supplies and materials for maintenance of commercial and residential buildings and homes, including “big box” supply stores, plumbing distributors, electrical distributors, HVAC distributors and other businesses that provide services that are necessary to maintaining the safety, sanitation and operations of residences and essential businesses.

Florida:

Florida ordered the closure of all nonessential businesses. Florida has also ordered that all residents stay home unless leaving to perform an “essential services or conduct essential activities.”

Essential services includes the list detailed in the CISA Guidance, which was attached to the order, as well as businesses and activities designated essential by Miami-Dade County (see below). The state published a list of services deemed essential per the order.

The list includes:

• Workers who support construction in the petroleum, electricity, and energy industries;
• Workers who support the operation, inspection, and maintenance of essential public works facilities and operations, including bridges, water and sewer main breaks, fleet maintenance personnel, construction of critical or strategic infrastructure, traffic signal maintenance, emergency location services for buried utilities, maintenance of digital systems infrastructure supporting public works operations, and other emergent issues;
• Workers such as plumbers, electricians, exterminators, builders, contractors, HVAC Technicians, landscapers, pool care service providers, and other service providers who provide services that are necessary to maintaining the safety, sanitation, and essential operation of residences, businesses and buildings such as hospitals, senior living facilities, any temporary construction required to support COVID-19 response;
• Engineers, technicians and associated personnel responsible for infrastructure construction and restoration, including contractors for construction and engineering of fiber optic cables, buried conduit, small cells, other wireless facilities, and other communications sector-related infrastructure. This includes construction of new facilities and deployment of new technology as these are required to address congestion or customer usage due to unprecedented use of remote services;
• Suppliers, designers, transporters and other workers supporting the manufacture, distribution and provision and construction of essential global, national and local infrastructure for computing services (including cloud computing services and telework capabilities), business infrastructure, financial transactions/services, web-based services, and critical manufacturing;
• Workers supporting essential maintenance, manufacturing, design, operation, inspection, security, and construction for essential products, services, and supply chain and COVID 19 relief efforts;
• Workers performing housing construction related activities to ensure additional units can be made available to combat the nation’s existing housing supply shortage; and
• Workers supporting the construction of housing.
Generally, construction appears to be an essential business, but not all types of construction. Therefore, construction businesses should evaluate projects on a case-by-case basis.

Miami:

Miami has ordered that all nonessential retail and commercial establishments close.

The following, among other industries, have been deemed essential:

• Open construction sites, irrespective of the type of building;
• Architectural, engineering or land surveying services;
• Contractors and other tradesmen who provide services that are necessary to maintaining the safety, sanitation and essential operation of residences and other structures.

Generally, construction appears to be an essential business, but not all types of construction. Though open construction sites may remain open, the Miami-Dade order does not specifically include construction that has not yet commenced, except for specific purposes. Therefore, construction businesses should evaluate projects on a case-by-case basis.

Georgia:

Georgia ordered the closure of all businesses that are not “critical infrastructure” except for minimal basic operations. The state has also ordered that all residents stay home unless conducting or participating in “essential services.”

“Critical infrastructure” refers to businesses defined as “essential critical infrastructure workforce” per the CISA Guidance. As explained above, many construction activities have been deemed to be “essential” per CISA and in general, construction and construction supply companies may continue operations. However, construction businesses should evaluate projects on a case-by-case basis.

Atlanta:

Atlanta has ordered that all nonessential businesses close and that residents of Atlanta stay at home unless engaging in essential activities. One exception is for residents to leave to “work for essential businesses.”
Construction was deemed essential infrastructure per the Atlanta order, but the state’s order preempts the Atlanta order. Construction businesses should follow state guidance.

Illinois:

Illinois ordered the closure of all nonessential businesses. Illinois has also ordered that all residents stay home unless leaving to perform an “essential function.”

The order categorizes construction as essential infrastructure. Therefore, construction companies may continue to operate and construction workers may go to work.

It specifically includes, but is not limited to: construction required in response to this public health emergency, hospital construction, construction of long-term care facilities, public works construction and housing construction.

Chicago:

Chicago joined in the announcement of the statewide order, which is more expansive and preempts its local orders.

Maryland:

Maryland ordered the closure of all nonessential businesses that are not part of the critical infrastructure sectors identified by the CISA guidance.

The Maryland Office of Legal Counsel published interpretive guidance, which includes “commercial and residential construction companies” in the list of businesses that are not required to close under the category of commercial facilities. Therefore, construction companies may continue to operate.

Massachusetts:

Massachusetts ordered the closure of all nonessential businesses.

Generally, construction is “essential” to critical infrastructure and construction companies may continue to operate.

Specifically designated as essential are:

• Construction workers who support the construction, operation, inspection, and maintenance of construction sites and construction projects (including housing construction);
• Workers who support the operation, inspection, and maintenance of essential public works facilities and operations, including roads and bridges, water and sewer main breaks, fleet maintenance personnel, construction of critical or strategic infrastructure, traffic signal maintenance, emergency location services for buried utilities, maintenance of digital systems infrastructure supporting public works operations and other emergent issues;
• Workers―including contracted vendors―involved in the construction of critical or strategic infrastructure including public works construction, airport operations, water, sewer, gas, electrical, nuclear, oil refining and other critical energy services, roads and highways, public transportation, solid waste collection and removal, and interne, and telecommunications systems (including the provision of essential global, national, and local infrastructure for computing services);
• Workers such as plumbers, electricians, exterminators, inspectors and other service providers who provide services that are necessary to maintaining the safety, sanitation, and essential operation of residences, construction sites and projects, and needed facilities;
• Engineers, technicians and associated personnel responsible for infrastructure construction and restoration, including contractors for construction and engineering of fiber optic cables.

Boston:

Boston suspended all regular activity at construction sites.
Boston provided the following guidance:

• Employers should maintain the necessary crews to keep their sites safe and secure, keep any materials from blowing away, and prevent trespassing.
• After sites have been secured, skeleton crews will be permitted for the remainder of this suspension to ensure safety.
• The only work that will be permitted moving forward will be emergency work, which will need to be approved by the city’s Inspectional Services Department.

That essential work includes:

• Emergency utility, road or building work, such as gas leaks, water leaks and sinkholes;
• New utility connections to occupied buildings;
• Mandated building or utility work;
• Work at public health facilities, healthcare facilities, shelters, including temporary shelters and other facilities that support vulnerable populations;
• Work which ensures the reliability of the transportation network, and
• Other work necessary to render occupied residential buildings fully habitable.

Boston has a process to review requests for exceptions to the temporary construction moratorium. The Commissioner of Inspectional Services for building-related work or the Commissioner of Public Works for street-related work will grant exceptions if the construction will support increased public health and safety.

The Massachusetts order specifically supersedes any local order that interferes with the continued operations of COVID-19 Essential Services, and therefore likely preempts Boston’s suspension.

Nevada:

Nevada ordered the closure of “nonessential” businesses that either “promote recreational gatherings” or “promote extended periods of public interaction where risk of transmission is high.” The state also ordered all resident to stay home, subject to certain exceptions, which include performing work for Essential Infrastructure.

The order specifically permits the construction labor force to continue operating, with social distancing measures.

Las Vegas:

Las Vegas listed construction as an essential business, per the governor’s order.

New Jersey:

New Jersey ordered the closure of all nonessential construction.

“Essential construction projects” are defined as:

• Projects necessary for the delivery of health care services, including but not limited to hospitals, other health care facilities, and pharmaceutical manufacturing facilities;
• Transportation projects, including roads, bridges, and mass transit facilities or physical infrastructure, including work done at airports or seaports;
• Utility projects, including those necessary for energy and electricity production and transmission, and any decommissioning of facilities used for electricity generation;
• Residential projects that are exclusively designated as affordable housing;
• Projects involving pre-K-12 schools, including but not limited to projects in Schools Development Authority districts, and projects involving higher education facilities;
• Projects already underway involving individual single-family homes, or an individual apartment unit where an individual already resides, with a construction crew of 5 or fewer individuals. This includes additions to single-family homes such as solar panels;
• Projects already underway involving a residential unit for which a tenant or buyer has already entered into a legally binding agreement to occupy the unit by a certain date, and construction is necessary to ensure the unit’s availability by that date;
• Projects involving facilities at which any one or more of the following takes place: the manufacture, distribution, storage, or servicing of goods or products that are sold by online retail businesses or essential retail businesses, as defined by Executive Order No. 107 (2020) and subsequent Administrative Orders adopted pursuant to that Order;
• Projects involving data centers or facilities that are critical to a business’s ability to function;
• Projects necessary for the delivery of essential social services, including homeless shelters;
• Any project necessary to support law enforcement agencies or first responder units in their response to the COVID-19 emergency;
• Any project that is ordered or contracted for by Federal, State, county, or municipal government, or any project that must be completed to meet a deadline established by the Federal government;
• Any work on a non-essential construction project that is required to physically secure the site of the project, ensure the structural integrity of any buildings on the site, abate any hazards that would exist on the site if the construction were to remain in its current condition, remediate a site, or otherwise ensure that the site and any buildings therein are appropriately protected and safe during the suspension of the project; and
• Any emergency repairs necessary to ensure the health and safety of residents.

Though essential construction is broadly defined, not all types of construction are included. Therefore, construction businesses should evaluate projects on a case-by-case basis.

New York:

New York ordered the closure of all nonessential businesses. Initial guidance categorized construction as essential, but the state has since updated the guidance twice, narrowing the type of construction that is essential.

The most recent modification on April 9 and states that all non-essential construction must safely shut down, except emergency construction, (e.g. a project necessary to protect health and safety of the occupants, or to continue a project if it would be unsafe to allow to remain undone, but only to the point that it is safe to suspend work).

Essential construction may proceed, to the extent that:

• the construction is for, or your business supports, roads, bridges, transit facilities, utilities, hospitals or healthcare facilities, homeless shelters, or public or private schools;
• the construction is for affordable housing, as defined as construction work where either (i) a minimum of 20% of the residential units are or will be deemed affordable and are or will be subject to a regulatory agreement and/or a declaration from a local, state, or federal government agency or (ii) where the project is being undertaken by, or on behalf of, a public housing authority;
• the construction is necessary to protect the health and safety of occupants of a structure;
• the construction is necessary to continue a project if allowing the project to remain undone would be unsafe, provided that the construction must be shut down when it is safe to do so;
• the construction is for projects in the energy industry in accordance with Question No. 14 in the FAQ at: https://esd.ny.gov/sites/default/files/ESD_EssentialEmployerFAQ_033120.pdf;
• the construction is for existing (i.e. currently underway) projects of an essential business; or
• the construction work is being completed by a single worker who is the sole employee/worker on the job site.

At every site, it is required that the personnel working on the site maintain an appropriate social distance. Sites that cannot maintain appropriate social distancing, as well as cleaning/disinfecting protocols must close.

Enforcement will be conducted by state and local governments, including fines up to $10,000 per violation.
Construction may continue solely with respect to those employees that must be present at the business location/construction site in support of essential business activities. No other employees/personnel shall be permitted to work in-person at the business location/construction site. Any other business activities being completed that are not essential are still subject to the restrictions provided by Executive Order 202.

As noted above, local governments, including municipalities and school districts, are allowed to continue construction projects at this time as government entities are exempt from these essential business restrictions. However, to the greatest extent possible, local governments should postpone any non-essential projects and only proceed with essential projects when they can implement appropriate social distancing and cleaning/disinfecting protocols. Essential projects should be considered those that have a nexus to health and safety of the building occupants or to support the broader essential services that are required to fulfill the critical operations of government or the emergency response to the COVID-19 public health crisis.

New York City:

The city has adopted the governor’s order. The New York City Department of Buildings issued guidance to owners and contractors regarding enforcement of essential versus nonessential construction in accordance with the order. The guidance was issued prior to the April 9 state guidance update, but appears to still be in effect.

Per the guidance, only the following projects will be permitted by the New York City Department of Buildings until further notice:

Emergency construction:

1. Project necessary to protect the health and safety of the occupants:
a. Emergency work ordered by the New York City Department of Buildings;
b. Restoration of essential services – heat, hot water, cold water, gas, electricity or other utility services; or
c. Work necessary to address any condition requiring immediate corrective action that severely affects life, health, safety, property or significant number of persons.

2. Project required to continue to the extent it would be unsafe to allow work to remain undone. Such projects may continue only until it is safe to shut the site.

Essential construction:

1. Utilities;
2. Hospitals or healthcare facilities;
3. Transitional and/or homeless shelters;
4. Affordable housing: Construction work on public housing, or a private or multiple dwelling or real property that is a new building (NB) or that is 100 percent vacant; or is work on unoccupied public housing units for the designation as housing for specific populations (i.e., shelter set aside, domestic violence referrals), or work on the exterior to address emergency conditions requiring immediate corrective action, set forth in Section 1(a)(iii) or within public housing, correction of critical systems for seasonal preparedness for the 2020-2021 heating season of an existing public housing building. Construction work on a private or multiple dwelling or real property that is a new building or that is 100 percent vacant that is now used or will be converted to such use: (i) For the provision of affordable inclusionary housing or mandatory inclusionary housing pursuant to the New York City zoning resolution; or (ii) Where no less than 30 percent of the residential units are subject to a regulatory agreement, restrictive declaration, or similar instrument with a local, state or federal governmental entity or a local housing authority in a city with a population of one million or more.
5. Other essential construction as approved by the New York City Department of Buildings.
Solo work- Work that is limited to a single worker, who is the sole employee/worker on a job site.

Pennsylvania:

Pennsylvania has ordered the closure of all non-life-sustaining businesses. The state has also ordered all residents to stay home, unless supporting a life-sustaining business.

Construction, as a general category, is not “life-sustaining” per Pennsylvania’s published list of industry types. The state is permitting construction, but only for emergency repairs and for building healthcare facilities. Therefore, construction companies may not operate unless they fall under an exception or obtain a waiver from the state.

Philadelphia:

The state’s order preempts all prior Philadelphia orders, and therefore construction companies may not operate unless they fall under an exception or obtain a waiver from the state.

Texas:

Texas has closed only bars, dining establishments and gyms. Therefore, construction companies may continue to operate.

Various localities in Texas have enacted expansive business restrictions. As with all states, it is important to analyze local law to determine if there are restrictions for business operations.

Virginia:

Virginia has only ordered the closure of specific types of retail, recreational and entertainment businesses.

Therefore, construction companies may continue to operate.

About Duane Morris:

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Please see our COVID-19 site or contact your Duane Morris attorney for more information. Prior Alerts are available on the team’s webpage.

For Further Information:

If you have any questions about this Alert, please contact  Brad A. Molotsky, Elizabeth Mincer or any member of our COVID-19 Strategy Team or the attorney in the firm with whom you are regularly in contact.

© 2009- Duane Morris LLP. Duane Morris is a registered service mark of Duane Morris LLP.

The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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