New York State on PAUSE: New York State Shuts Down All Nonessential Businesses to Combat COVID-19

Under the terms of EO 202.8:

• All businesses and not-for-profit entities in the state shall utilize, to the maximum extent possible, any telecommuting or work-from-home procedures. By Sunday, March 22 at 8 p.m. all New York employers must eliminate their in-person workforces unless the business is deemed essential.
• Any business providing essential services or functions, whether to an essential business or a nonessential business, shall not be subjected to the in-person work restriction, and may operate at the level necessary to provide such service or function. Businesses and entities that provide other essential services must implement rules that help facilitate social distancing of at least six feet.
• The New York State Empire State Development Corporation (ESD) has updated the New York State guidance on businesses considered essential. These businesses can remain operational when others must move to working remotely or close.
• Most health care services, grocery stores, restaurants/bars (for takeout and delivery), pharmacies, gas stations, hardware stores, laundromats, childcare facilities, car repair shops and funeral homes are deemed essential.
• Other public services like trash hauling, construction, utilities and telecommunications are also exempt.
• Financial institutions are also exempt, including banks, insurance, payroll, accounting, and other services related to financial markets.

Importantly, and in contrast to other localities’ stay-at-home orders so far, Empire State Development (ESD) has implemented an electronic system to submit requests to be designated essential if the function of a business is not listed, but the business owner believes that it is providing essential services or functions. ESD has directed that businesses should not submit requests to be designated an essential function if they are already covered by the guidance, i.e., requests to confirm essential status are discouraged.

The shutdown of all nonessential businesses is the latest, and most drastic action taken by New York. Prior to this, New York instituted many workforce reduction efforts, prohibited large gatherings. and suspended many laws that would require people to leave their home including closing the Courts for all but essential actions, extending litigation and tax deadlines and suspending requirements that shareholder meetings be held at a physical location.

As social distancing-related regulation is picking up, New York has simultaneously been taking measures to lessen the impact on consumers and small businesses, including prohibiting the enforcement of either any eviction or foreclosure for any residential or commercial property proceedings for a period of ninety days. The rapidly changing legal environment resulting from the COVID-19 emergency is dramatically altering the business operations and we are available to answer questions.

Pillsbury’s experienced crisis management professionals are closely monitoring the global threat of COVID-19, drawing on the firm’s capabilities in supply chain management, insurance law, cybersecurity, employment law, corporate law and other areas to provide critical guidance to clients in an urgent and quickly evolving situation. For more thought leadership on this rapidly developing topic, please visit our COVID-19 resources page.