COVID-19: How to Determine If Your Business Should Remain Open 

Ervin Cohen & Jessup LLP
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Ervin Cohen & Jessup LLP

There is a fair amount of confusion among California businesses regarding Governor Newsom’s “stay home” order and which facilities should remain open.  Unfortunately, Executive Order N-33-20 does not provide much guidance. It does, however, refer to the list of federal government's critical infrastructure sectors posted by the Department of Homeland Security and except those individuals “needed to maintain the continuity of operations” of those sectors. In addition, the state’s website clarifies that critical government services, schools, childcare, and construction, including housing construction, should continue.  

More recently, the Newsom administration posted a 14-page report that provides a more detailed explanation on which businesses and workers are considered essential to a critical sector and exempt from the stay home order. The report also provides additional guidance on personal activities that are permitted.  

Those businesses or workers still unsure of their “stay home” status should dig a little deeper.  The Department of Homeland Security’s list of critical infrastructure sectors includes a link to a sector-specific plan for each sector that sheds further light on which businesses are included.  For example, the Financial Services Sector plan includes a lengthy discussion of the service providers essential for this critical sector. The plan makes clear that the Financial Services Sector includes a wide variety of businesses and workers that might not otherwise as be considered as exempt for the stay home requirements. 

There has also been some confusion over the fact that Executive Order N-33-20 seems to conflict with some city or county orders that may be more or less restrictive.  In response, state health officials have issued this statement:  “This is a statewide order.  Depending on the conditions in their area, local officials may enforce stricter public health orders.  But they may not loosen the state’s order.”  Thus, when it comes to COVID-19, the more restrictive order will apply.

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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