CIANJ Commerce Magazine August 2020 | Page 20

■ Law Continued From Page 16 and conditions and agreements) to determine whether changes should and can be made, due to supply, timing, cost or other limitations; continuing to properly maintain all business records, provide notices and satisfy reporting requirements, even if operating remotely; maintaining protocols in order to ensure appropriate cybersecurity; and addressing changes to business and operations with insurance carriers to ensure proper coverage. Despite current business limitations, businesses should proactively address these and other matters with counsel to avoid liability, expense or material adverse effects on their business during and post-pandemic. Day Pitney LLP By Susan Huntington, Esq., Partner Getty Images/iStockphoto My advice to clients has remained consistent during the pandemic—be transparent and share information, even if the news is uncomfortable. Have your legal counsel review such communications to provide an objective assessment and look for unintended risk exposure. For example, like most nursing homes in the United States, several of my clients had both staff and residents test positive for COVID‐19, despite having protective policies and procedures in place that exceeded both state and federal guidelines. The infections were reported to the state health department, but the facility was unsure whether to share this information with the other residents and their families, particularly since the press was hounding them for statistics and any communications would likely end up in the news. They didn’t want to be the first to disclose this information for fear of litigation or reputational damage. In the end, the facility did distribute a carefully written update that accurately disclosed the circumstances. Coincidently, the update was sent on the same day that the Centers for Medicare & Medicaid Services published its new requirements for nursing homes to notify the CDC and provide updates to residents and families in the event of positive COVID‐19 cases. Be transparent and share information, even if the news is uncomfortable. Gibbons P.C. By Kevin G. Walsh, Esq., Co-Chair, Government & Regulatory Affairs Dept. Our clients are navigating a crisis with no playbook or precedent and, although government officials are announcing various prohibitions, no level of government is offering very reliable guidance about how to operate an essential business or how to open any business once we are all permitted to slowly come back to work. Consequently, and to keep your business open, consider: 1) making an insurance claim for business interruption losses, regardless of whether your policy has an exclusion (because Congress may be legislating in this area soon); 2) ensuring that your essential employees who are present in the workplace are certifying that they understand the risks of being physically present, they will follow all of your distancing and disinfecting procedures, and they are assuming great risks by going to work; 3) developing a defensible plan for returning to work in stages, based on a reduced workforce that is physically present in the office or facility, with all others, including vulnerable populations, working remotely; and 4) viewing all contingency measures with an eye toward making it to December 31, 2021—this is a marathon for survival, not a sprint back to work in a few months. McElroy, Deutsch, Mulvaney & Carpenter, LLP By James E. Patterson, Esq., Partner, Co-Chair , Labor and Employment Practice Group The most important piece of advice in reducing employment litigation risks is to stick to the basic best practices that apply in good times and bad. Employment termination cases arising from the pandemic will be decided by judges and juries sitting in calmer times, and the ultimate issue—as always—will be whether the employer acted fairly and without bias. Employers must be able to show that termination decisions were based on objective business considerations. Ideally, the employer should demonstrate that, prior to each termination and in accordance with established procedure, it conducted a thorough evaluation to ensure there were legitimate business reasons for the decision supported by the employee‘s work performance history and past reviews. In addition, the employer must analyze the employee’s individual circumstances and overall statistical and demographic data to ensure that the decision is free from actual or hidden bias. Employer attempts to “use” the crisis to eliminate employees for impermissible reasons such Continued On Page 20 Getty Images/iStockphoto Getty Images/iStockphoto 18 COMMERCE www. commercemagnj.com