COVID-19 has reached virtually the entire country, and both employers and employees in a broad range of industries have experienced outbreaks. At the same time, the government and private sector continue to take steps to slow the virus’s spread and protect employees while adapting to the new business environment. In recognition of the unique challenges posed by COVID-19, the Occupational Safety and Health Administration (OSHA) is applying updated guidance in an effort to provide additional clarity to employers and workers.
In the latest update to our Q&A guide to returning to work in the time of COVID-19, we lay out considerations and action items for retailers — including bars and restaurants, personal health and beauty service providers, and clothing and big box stores — as they prepare to safely reopen their doors to customers.
For the full guide, visit the Faegre Drinker website.
The global coronavirus pandemic has had a multitude of effects on how employers conduct business and manage their workforces. But as employees start to return to work, employers must be mindful of how to address those who leave and potentially violate their noncompetition agreements. As we settle into the “new normal,” the Restrictive Covenant team with Faegre Drinker’s Labor & Employment group has identified four considerations for employers seeking to enforce restrictive covenants and protect trade secrets.
On March 18, 2020, Governor Andrew Cuomo enacted Executive Order 202.6, temporarily closing all nonessential businesses in response to the coronavirus outbreak. In late April, Governor Cuomo issued guidance announcing a phased approach to reopening businesses that requires regions across New York State to satisfy seven criteria involving a drop in the infection rate, increased capacity in healthcare systems, increased ability to administer diagnostic tests and isolate new cases, and a capacity to implement contact tracing. With eight out of the state’s ten regions satisfying Governor Cuomo’s criteria, municipalities and businesses around the state prepare to return to work.
As the COVID-19 pandemic spread throughout the country, many employers responded to this unprecedented and uncertain situation by furloughing and laying off some or all of their workforce. These actions already have spurred labor and employment lawsuits. And more are likely on the horizon, including as employees start returning to work.
A recent Delaware Chancery Court opinion has elucidated Delaware’s approach to judicially modifying, or “blue-penciling,” overly broad noncompete agreements and deferring to parties’ choice of law provisions. The case, FP UC Holdings, LLC, et al. v. James W. Hamilton, Jr., et al., C.A. No. 2019-1029-JRS (Del Ch. Mar. 27, 2020), highlights the importance of drafting well-tailored restrictive covenants, and shows that even in Delaware – where employers often have been reassured by the safe harbor of courts’ relative willingness to blue-pencil problematic agreements and apply Delaware law to fact patterns that have developed in other states – employers must make careful drafting and choice of law decisions. It also emphasizes that if an employer’s intent is to litigate in Delaware, the employer should do so from the beginning, without acquiescing to another court’s jurisdiction.