Understanding regulatory compliance in pandemic and post-pandemic times. Matthew McCullough

Matthew W. McCullough is a partner at MacDonald Illig. His practice consists primarily of labor and employment advice and litigation for employers and business/commercial litigation.

Businesses traditionally have operated in a highly regulated environment, with federal, state and local laws regulating antidiscrimination, Americans with Disabilities Act (ADA) compliance, employee paid and unpaid leave entitlements, wage and hour issues, workplace safety and environmental compliance to name a few. Prior to the COVID-19 pandemic, navigating these statutory and regulatory requirements could be tricky with the potential for significant financial exposure if not done correctly. Due to the variety and novelty of problems created by the pandemic and government response, businesses now face new requirements, some changing on a daily basis, in addition to preCOVID-19 requirements that remain in effect. The COVID-19 pandemic has given birth to an array of new legislation, regulations, executive orders and guidance too numerous to mention. Some of the more challenging employment-related enactments include new paid sick and family leave entitlements under the Families First Coronavirus Response Act, new Equal Employment

Opportunity Commission (EEOC) guidance concerning medical inquiries and virusrelated accommodations, wage and hour, and confidentiality issues involving remote workers. Plus, there is a myriad of requirements as businesses bring employees back to work, reopen to the public and resume “normal” operations. Much confusion was generated by the Paycheck Protection Program’s (PPP) application process and eligibility determinations, and businesses now must ensure that PPP funds are used properly to achieve maximum loan forgiveness. Existing pandemic-related regulations will continue to evolve and even more regulations are inevitable as more is learned about the virus’s transmissibility and its long-term impact on the economy. In short, this ever-changing regulatory landscape requires businesses and their advisers to be more vigilant than ever.

Business must not underestimate the importance of awareness, understanding and compliance with evolving federal, state and local requirements. Here are some suggestions to assist businesses to maintain compliance during these challenging times:

Sources include OSHA, U.S. Department of Labor, EEOC, Governor Tom Wolf, and state and local health departments, and follow links to additional resources.

local orders, and regulations and guidance that may relax or repeal stayhome orders, which impact personnel matters or that dictate the requirements for your business to reopen.

guidance or FAQs applicable to your particular business, such as construction or restaurants.

newsfeeds, and newsletters and e-mail updates from regulatory bodies, and state and local legislators.

resume of pre-pandemic regulations suspended or loosely enforced during the height of the pandemic.

will continue relaxed enforcement of local regulations and ordinances as more businesses reopen.

state authorities, and non-compliance at those levels can bring stiff fines and even license suspension or revocation.

information that applies to your business, and update regularly as requirements change. • Designate a particular person within your organization to be responsible for tracking and updating your database.

policies are updated timely to reflect changes in regulations and standards, and disseminate updates to those who must know to ensure compliance. • Be forward thinking. Develop a plan to respond to more strict regulation if we experience a spike in cases. In some situations, it may be appropriate to communicate directly with local officials or local representatives of state or federal agencies such as the Occupational Safety and Health Administration or the Department of Labor. To this end, maintaining good relationships with these agencies and individuals, particularly at the local level, makes good business sense. Finally, do not hesitate to contact your legal or other professional advisers for guidance. For more information, contact Matt McCullough at 814/870-7602 or mmccullough@mijb.com.

100 State Street, Suite 510, Erie, PA 16507

For For over 35 over 35 years, Lilli years, Lilli s, s, M M cKibben, cKibben, B B on on g g i i ovanni & ovanni & Co. has Co. has

empl empl oyers big and small in North oyers big and small in North wes wes tern tern Pennsyl Pennsyl vania, vania, Wes Wes tern New tern New York, and Northeastern Ohi York, and Northeastern Ohi o. o. As one of the As one of the la la rgest providers in the a rgest providers in the a rea, our rea, our experien experien ced ced Plan Plan

stra stra teg teg ically ali ically ali g g ned with ned with your your compa compa n n y’s goals y’s goals

Please contact us today to see why Lillis, McKibben, Bongiovanni & Co.

Customize your coverage to be as unique as your eyes with more frame and lens choices, comprehensive eye exams made easy, and a wide provider network.

Rates starting as low as $3.48 for an individual No participation requirements for groups of two or more Plans can be contributory or noncontributory

Eileen Anderson is the director of Government Relations at SMC Business Councils, which merged with the Manufacturer & Business Association in 2019. Contact her at eileenanderson@smc.org.

Editor’s Note: This article includes the most current figures as of July 9, 2020. Sir Isaac Newton had it right in 1687 when he proposed his First Law of Motion: A body in motion tends to stay in motion. That’s an accurate description of many businesses during these extraordinary times. What’s learned from numerous calls to MBA member companies is that many have been in motion since the March 23 shutdown. They have taken it in stride, often painfully, and dealt with many changes to operations and finances caused by the pandemic and directives from overhead. This collection of information partially illustrates the magnitude of the COVID-19 pandemic and the instant recession it caused. While uncertainty abounds, the task for businesses is to predict what lies ahead for the remainder of the year. The first case of COVID-19 in Pennsylvania was March 6 followed by the first death on March 18. • Confirmed cases: 92,418 • Confirmed deaths: 6,812 Closure of all PA non-life sustaining businesses was ordered on March 23. Weeks of confusion followed. It was difficult to understand the exemption request process, why some were granted and others denied. Some businesses could not initially determine their category and closed unnecessarily. The process caused extreme frustration for businesses and lawmakers alike. • Exemption requests reviewed: 42,000 • Exemption requests approved: 6,124 • Exemption requests denied: 12,826

Note: Estimates are from the

Department of Community and

Economic Development. Pennsylvania has nearly 1 million small businesses. Eventually those businesses that closed for good will become apparent, but no one will ever know the number of businesses that closed temporarily. When businesses shut down so does the economy. Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and provided for the Paycheck Protection Program (PPP). Thousands of businesses applied for the Small Business Administration (SBA) loans. SBA gave this report on June 30: • 165,918 PPP loans were made to PA businesses with an economic impact of $20.7 billion. The PPP loans helped, but when businesses — both those that were closed and others that were open — suffer from weakened sales the result can be worker layoffs and furloughs. Labor and Industry reported: • Nearly 2.2 million workers filed claims during the 10-week period beginning

March 15. • Estimated unemployment compensation payments were $23.7 billion. • May’s unemployment rate was 13.1 percent. The CARES Act gave an extra $600 weekly to those on unemployment through July. It also provided stimulus checks. PA’s Independent Fiscal Office reported in late June that Pennsylvanians received 6.2 million checks with an economic impact of $10.8 billion. In response to the pandemic and collapse of the economy, Congress passed four bills between March 4 and April 24 totaling $3.6 trillion. • Coronavirus Preparedness & Response Supplemental

Appropriations Act - $8 billion • Families First Coronavirus Response

Act - $192 billion • CARES Act - $2.7 trillion • PPP and Health Care Enhancement

Act - $733 billion Pennsylvania has a $25.8 billion fivemonth budget that keeps spending level through November. Painful cuts or increased taxes will be needed to make up for lost revenue projected to be $5 billion by June 2021. The state received $4.9 billion in federal stimulus, but it cannot be used to make up for lost revenues. Stay in motion!