Update on the Minnesota Peacetime Emergency

Pursuant to Minnesota Executive Order 20-12, Governor Walz has extended the peacetime emergency through April 14, 2021. With the extension of the peacetime emergency, all executive orders tied to the emergency have also been extended, including the eviction moratorium, current rules for businesses, and a prohibition on price gouging. For a summary of each of Governor Walz’s COVID-19 Executive Orders, along with an indication of those that remain in effect, click here.

Reopening Minnesota Phase III

Minnesota has entered Phase III of a four-phase plan to reopen the state, issuing Executive Order 20-74 on June 5, 2020. This order allows Minnesotans to participate in additional activities, increases the size of permissible gatherings, expands capacity and allows indoor service for bars and restaurants, and more. To view all the new permitted activities, you can refer to the order (Executive Order 20-74) or the Stay Safe Minnesota website (Stay Safe MN) chart. With the extension of the peacetime emergency on June 12, 2020, the requirements within Governor Walz’s Executive Orders for Minnesotans, including businesses and residents, will remain in effect until July 12, 2020, with possible modifications by further order. Bernick Lifson has seen the most questions related to reopening plans with businesses reopening their doors to employees and customers and multi-housing properties.

If your company is considered a non-critical business, this order will not impact how you operate under a preparedness plan. As mentioned above, restaurants, bars, and personal service businesses are now allowed increased capacity. Additionally, fitness centers, indoor events and entertainment centers, outdoor events and entertainment centers, and public pools can reopen under the requirements specified in Executive Order 20-74.

As for critical businesses, including multi-housing properties, specific guidelines were never provided for employee and resident safety beyond following the Minnesota Department of Health (MDH) and Centers for Disease Control and Prevention (CDC) guidelines. However, this is changing with Executive Order 20-74. Critical businesses will now be required to prepare a COVID-19 preparedness plan by June 29, 2020, with industry guidance being provided on the Stay Safe Minnesota website on or before June 15, 2020 (Stay Safe MN). While these plans will likely be similar to what is required for non-critical businesses, it is essential to review the additional guidance, once received, and include it within your plan.

In creating your COVID-19 Preparedness Plan, whether a critical or non-critical business, be sure to refer to the Occupational Safety and Health Administration (OSHA) guidance on preparing workplaces for COVID-19 (OSHA guidance publication). This will allow your business to protect employees from the increased risk of contracting COVID-19 and limit safety concerns for employees. Multi-family property employees will most often be considered lower risk for exposure, and safety protocols should be put in place under OSHA’s guidelines within that category. OSHA guidance should not be used to replace the CDC and MDH but rather to supplement the procedures recommended by both these organizations.

Many amenities such as party rooms, decks, business centers, and coffee stations for multi-housing properties could be reopened under the previous phase of the Stay Safe Minnesota plan, Phase II. This required capacity limits of 10 or fewer people within each amenity, operating under the guidance of the MDH and CDC. While fitness centers and pools within multi-housing properties could be reopened under Phase II (when only for use by residents and guests), it was logistically challenging to ensure social distancing, maintain cleanliness and meet capacity limits under MDH and CDC requirements. However, now that capacity has been increased, and additional guidance has been provided under Phase III of the Minnesota reopening plan, it is far more feasible to reopen these amenities.

Minnesota Executive Orders do not require private pools and fitness centers within multi-housing properties to follow all the requirements of public facilities. Though many requirements are consistent with the MDH and CDC guidelines, it is advisable to follow the guidelines relevant to your property. This would include capacity limits of 10 people for indoor spaces and 25 people for outdoor spaces, 6 feet of social distancing, and 50 percent capacity within the pool. Fitness centers would include a capacity limit of 10 people or 25 percent of allowed capacity within the space, whichever is less, and 6 feet of social distancing. As with all other amenities, MDH and CDC guidelines should be followed, including hygiene and cleaning of those sites, and posting guidelines for use by residents and their guests is recommended.

We can assist you and your multi-housing properties with preparedness plans, plans for reopening amenities, guidelines for residents and guests to follow, and any other needs you have related to meeting the requirements of Executive Order 20-74 and all other relevant orders. Contact Bernick Lifson today for additional information on the above orders and specific questions related to your businesses and properties.

A Step Toward Reopening Minnesota

Governor Tim Walz issued a number of Executive Orders related to the COVID-19 pandemic this week, including Executive Orders 20-53 and 20-56. Governor Walz has issued fifty-seven Executive Orders since the peacetime emergency was declared for the State of Minnesota on March 13, 2020. For a summary of each of Governor Walz’s COVID-19 Executive Orders, click here.

According to the numbers published on the Minnesota COVID-19 Response website, Minnesota has had over 14,000 confirmed cases of COVID-19 and over 600 fatalities. With the recent Executive Orders, as with previous ones, Minnesota must balance public health needs with economic considerations. Executive Orders 20-53 and 20-56 expands upon Executive Order 20-48, allowing certain “non-critical” businesses to reopen and resume operations after implementing adequate safety measures.   

Here are the 7 important takeaways from Executive Orders 20-53 and 20-56:

1. The COVID-19 Peacetime Emergency has been extended through June 12, 2020.

2. The stay-at-home order has been replaced by a stay-safe Minnesota order through May 31, 2020, with new permissions discussed below.

3. You may leave your homes for certain activities.

While Minnesota is still encouraging the limitation of social interactions, you may leave your home for activities so long as you follow the requirements of the Minnesota Department of Health, the Department of Natural Resources, and the Center for Disease Control. Unnecessary travel is still discouraged. Gatherings of more than 10 people are prohibited. Find more information for engaging in activities outside of the home at https://mn.gov/covid19/.

1. Bars, restaurants and other places of public accommodation may be opening beginning June 1, 2020.

The Commissions of Health, Employment and Economic Development, and Labor and Industry are developing a plan to reopen bars, restaurants, and other places of public accommodation by June 1, 2020. The plan will be presented to the public by May 20, 2020.

1. Certain Non-critical businesses may reopen.

Certain Non-Critical Exempt Businesses may resume operations, including retail stores and malls. Customer-facing businesses must allow no more than 50% of the establishment’s occupant capacity inside the business at any time. Guidance for what constitutes Non-Critical Exempt Businesses can be found at https://mn.gov/deed/safework/.

1. Non-Critical Exempt Businesses must create a COVID-19 Preparedness Plan.

All Non-Critical Exempt Businesses must create and implement a COVID-19 Preparedness Plan prior to resuming operations. All employees returning to work must be trained on the employers’ COVID-19 Preparedness Plan and its procedures. Click here for more information on creating a COVID-19 Preparedness Plan. 

1. Certain Outdoor recreational activities and associated facilities may reopen.

Executive Order 20-56 provides a list of outdoor recreational activities and facilities that may reopen, including parks, golf courses, camping sites, and more. All outdoor recreational activities and facilities that are reopening must adhere to the limitation of the number of individuals that can gather as well as the Outdoor Recreation Guidelines found at https://www.dnr.state.mn.us/covid-19.html. 

Note, the Executive Orders continue to require all workers who can work from home to do so. 

These most recent Executive Orders are a step towards reopening Minnesota and allowing more Minnesotans to return to work. It is important to remember that, as with the previous Executive Orders, failure to comply with Executive Orders 20-53 and 20-56 may result in a fine or imprisonment and potential civil penalties.

Reopening Your Business: COVID-19 Preparedness Plan

Governor Tim Walz issued Executive Order 20-56 on May 13, 2020, extending the stay-at-home order and providing for the reopening of certain “non-critical” businesses and outdoor recreational activities and facilities. For more information on Executive Order 20-56, click here.

All those who can work from home must continue to do so. Still, workers in the following non-critical business sectors are exempt from the stay-at-home order to travel to work: industrial and manufacturing businesses, office-based businesses, and retail businesses. This exemption is subject to restrictions, including requiring each non-critical business resuming operations to create a COVID-19 Preparedness Plan. All non-critical businesses that are primarily customer-facing are required to establish additional provisions to incorporate into your Plan. All employees must be trained on the contents and procedures of your Plan. 

Pursuant to Executive Order 20-56, your COVID-19 Preparedness Plan must address the following: 

1. Ensure that all employees work from home whenever possible.

2. Ensure that sick employees stay home and establish policies and procedures that prevent sick employees from entering the workplace.

3. Ensure that all employees practice social distancing in the workplace pursuant to current CDC, Federal, and State standards.

4. Establish employee hygiene and source control policies for all employees.

5. Establish cleaning and disinfection protocols for the workplace.

Additional protocols must be established in your Plan for drop-off, pick-up, delivery, in-store shopping, and malls. Non-critical front-facing businesses and common areas within commercial retail buildings must operate at 50 percent of standard capacity.

If not extended by future legislation or executive order, the above requirements will remain in place until May 31, 2020. The Minnesota Department of Labor has provided a template COVID-19 Preparedness Plan, which can be found at https://mn.gov/deed/safework/. It is important to note that while your Plan does not need to be submitted to the Department of Labor for approval, it must be available upon request. For help preparing your COVID-19 Preparedness Plan in anticipation of reopening your business, contact Bernick Lifson today. 

Breaking down the recently-enacted Coronavirus Aid, Relief, & Economic Security Act

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a $2 trillion stimulus package recently signed by President Trump aimed at shoring up the U.S. economy. At the same time, it navigates the worst of the COVID-19 pandemic. Much of the media attention has been concerned with the individual aid measures to provide an infusion of cash through direct payments and expanded unemployment insurance, small and large businesses in the form of loans, grants, tax deferments, and other measures. Below is a summary of some of the key provisions for owners and managers of businesses to be aware of while navigating the coming weeks.

Small Businesses

• All businesses under 500 employees are eligible for loans from the Small Business Administration. The total loan amount can be up to:

  • Four months of average payroll, mortgage, rent, and debt expenses; or

  • $10,000,000

• The portion of these loans spent on payroll from March 1 to June 30 may be forgiven; less any reductions if the business’ workforce or payroll has been reduced in that time period.

• Temporarily waives fees and guarantees the total amount for all SBA loans.

• Grants deferral of loan repayments for up to a year

• The SBA will also provide grants of up to $10,000 to help pay operating costs in the near term.

Businesses and Corporations

• Corporate tax filings are extended to October 15, 2020

• Up to fifty percent of payroll taxes due can be deferred until January 1, 2021

• Loosened restrictions on a business’s ability to deduct operating losses and interest payments on debt for the tax years of 2019 and 2020

Economic Stabilization Measures

• Creates loan funds of $50 and $8 billion for passenger and cargo domestic air carriers, respectively

  • Airlines are also exempt from excise taxes on fuel for the rest of 2020

• Creates $150 billion loan fund for other businesses not eligible for relief under other provisions of the Act

• Businesses that take these loans are subject to certain conditions.

  • Executive compensation is capped at 2019 levels for two years.

• All money and programs distributed under this section are subject to oversight by an inspector general and reporting requirements by the Treasury.

• Otherwise, qualifying businesses owned by the president, vice president, the cabinet, Congress, or family members are specifically barred from receiving these funds.