COVID-19 Update: NY Releases Guidance on Workforce Reduction Order

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Governor Cuomo announced on March 20, 2020, that he will be expanding Executive Order 206.7 and directing all non-essential businesses and keep all in-office staff home.  This announcement comes one day after Governor Cuomo directed non-essential businesses to reduce their in-office staff by 75% by March 21, 2020 at 8:00 pm.  We expect the 100% reduction of in-office staff to take effect no later than Sunday at 8:00pm or possibly earlier.  Governor Cuomo announced that violations of this order may result in civil fines and mandatory closure.

The Empire State Development Corporation (ESD) issued guidance on essential businesses that do not need to comply with Executive Order 206.7. ESD has identified the following essential businesses.

1.      Essential health care operations including

  • research and laboratory services
  • hospitals
  • walk-in-care health facilities
  • veterinary and animal health services
  • elder care facilities
  • medical wholesale and distribution
  • home health care workers or aides
  • doctors’ and dentists’ offices
  • nursing homes, or residential health care facilities or congregate care facilities
  • medical supplies and equipment providers

2.      Essential infrastructure including

  • utilities including power generation, fuel supply and transmission
  • public water and wastewater
  • telecommunications and data centers
  • airports/airlines
  • transportation infrastructure such as bus, rail or for-hire vehicles, garages

3.     Essential manufacturing including

  • food processing, including all foods and beverages
  • chemicals
  • medical equipment/instruments
  • pharmaceuticals
  • safety and sanitary products
  • telecommunications
  • microelectronics/semi-conductors
  • agriculture/farms
  • paper products

4.      Essential retail including

  • grocery stores including all food and beverage stores
  • pharmacies
  • convenience stores
  • farmers’ markets
  • gas stations
  • restaurants/bars (but only for take-out/delivery)
  • hardware and building material stores

5.      Essential services including

  • trash and recycling collection, processing and disposal
  • mail and shipping services
  • laundromats/dry cleaning
  • building cleaning and maintenance
  • child care services
  • auto repair
  • warehouse/distribution and fulfillment
  • funeral homes, crematoriums and cemeteries
  • storage for essential businesses
  • animal shelters or animal care or management

6.      News media

7.      Financial institutions including

  • banks
  • insurance
  • payroll
  • accounting

8.      Providers of basic necessities to economically disadvantaged populations including

  • homeless shelters and congregate care facilities
  • food banks
  • human services providers whose function includes the direct care of patients in state-licensed or funded voluntary programs; the care, protection, custody and oversight of individuals both in the community and in state-licensed residential facilities; those operating community shelters; and other critical human services agencies providing direct care or support

9.      Construction including

  • skilled trades such as electricians, plumbers
  • other related construction firms and professionals for essential infrastructure or for emergency repair and safety purposes

10.  Defense

  • defense and natural security-related operations supporting the U.S. government or a contractor to the U.S. government

11.  Essential services necessary to maintain the safety, sanitation and essential operations of residences or other essential businesses including

  • law enforcement
  • fire prevention and response
  • building code enforcement
  • security
  • emergency management and response
  • building cleaners or janitors
  • general maintenance whether employed by the entity directly or a vendor
  • automotive repair
  • disinfection
  • doormen

12.  Vendors that provide essential services or products, including logistics and technology support, child care and services needed to ensure the continuing operation of government agencies and provide for the health, safety and welfare of the public including

  • logistics
  • technology support
  • child care programs and services
  • government-owned or leased buildings
  • essential government services

If the function of your business does not appear on the above list, a business may request designation as an essential business through ESD’s website. ESD has advised businesses who appear on the above list to not seek such designation. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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