Managing the Commercial Impact of the Coronavirus: San Francisco Bay Area Shelter in Place Orders

EDITOR’S NOTE: An update to this alert has been published here. For the most up to date information on Shelter in Place Orders in California, please click here.

“My fellow San Franciscans, what we are asking for everyone to do is to remain at home for all but the most essential outings for your safety and the safety of those around you.” ( ~ San Francisco Mayor London Breed speaking at a news conference Monday)

As the coronavirus (“COVID-19”) outbreak continues to wreak havoc on markets and industries in the U.S. and around the world, businesses are now confronting significant and unique challenges.  Successful navigation of these challenges will require thoughtful and comprehensive planning.  Foley has created a multi-disciplinary and multi-jurisdictional team, which has prepared a wealth of topical client resources (see Foley’s Coronavirus Resource Center) and is prepared to help our clients meet the legal and business challenges that the COVID-19 outbreak is creating for stakeholders across a range of industries, including automotive, manufacturing, technology, solar, hospitality and travel, healthcare, food, fashion and apparel, and sports & entertainment.  

In an unprecedented move, seven counties in the San Francisco Bay Area have issued “shelter in place” orders, which will last from March 17, 2020 through April 7, 2020. The seven affected counties are San Francisco, Alameda, Contra Costa, Marin, Santa Clara, San Mateo and Santa Cruz. The Orders aim to limit the spread of COVID-19 by ensuring people self-isolate as much as possible while still allowing for essential services to continue. The first such Order issued was from San Francisco County and takes effect as of Midnight on March 17, 2020.  The other six (6) counties have similar orders. 

In brief, residents of each county must remain at home. Gatherings outside the home are generally prohibited, with certain exceptions for essential activities (e.g., healthcare, grocery shopping, etc.), essential travel, to perform work for essential businesses (e.g., healthcare, grocery stores, etc.), to perform work for governmental activities or to perform essential infrastructure work (e.g., testing, housing, etc.).  However, these limited circumstances where people may interact with one another include the requirement to observe the past COVID-19 protocols (“social distancing”) such as staying 6 feet apart, not going to work if you are ill, and frequent washing of hands.  There are exceptions to the Orders and other details worthy of note as highlighted below:

免除。個人は、以下の目的で居住地を離れることができる：

Operate an Essential Business, which includes:

• 在宅医療従事者を含む医療業務；
• 重要インフラ（住宅建設、公共交通機関及び公益事業の運営を含む） 
• 食料品店、農産物直売所、フードバンク、コンビニエンスストア；
• 経済的に困窮している個人や避難施設に生活必需品を提供する事業；
• 薬局、医療用品店、医療施設；
• ガソリンスタンドおよび自動車修理工場；
• 銀行；
• ガベージコレクション;
• 住宅およびその他の必須事業所の安全、衛生、および必須業務の維持に必要な金物店、配管工、電気技師、その他のサービス提供者；
• 遠隔教育を促進する目的で、教育機関；
• コインランドリー、クリーニング店、および洗濯サービス提供業者；
• 食料品、食品、および商品を直接住宅に配送または配達する事業；
• 必須従業員が勤務できるようにするサービスを提供する保育施設；
• 必須事業が「基本的な業務を維持」するために必要な役割。これには警備、給与計算、および同様の活動が含まれる。

Further, the Order includes certain professional services as “essential business” (e.g., Professional services, such as legal or accounting services, when necessary to assist in compliance with legally mandated activities).  

また、すべての事業者は以下の規定に基づき「最低限の基本業務」を継続することが認められています：

For the purposes of this Order, “Minimum Basic Operations” include the following, provided that employees comply with Social Distancing Requirements as defined this Section, to the extent possible, while carrying out such operations: i. The minimum necessary activities to maintain the value of the business’s inventory, ensure security, process payroll and employee benefits, or for related functions. ii. The minimum necessary activities to facilitate employees of the business being able to continue to work remotely from their residences. 

主なよくある質問：

• 本命令の対象外となる活動は何か？
  
  「必須活動」には以下が含まれます：
  • Essential travel (e.g. travel relating to “essential activities,” “essential businesses,” or “minimum basic operations”)
  • 「必須事業」（例：医療業務、緊急対応機関、食料品店、コンビニエンスストア、メディアサービス、ガソリンスタンド／自動車修理施設、銀行および関連金融機関、配送サービス）を支援する活動
  • 政府機関を支援する活動、配達または持ち帰りサービスを提供する飲食店、および法律・会計サービスなどの特定の専門サービス（法的義務の遵守を支援するために必要な場合）
  • 公共事業建設、住宅建設、空港運営、水道、下水道、ガス、電気、石油精製、道路・高速道路、公共交通機関、固形廃棄物収集・処理、インターネット、通信システムなど、重要インフラ業務を支える活動。

• Are non-essential businesses required to end their activities? 
  
  No.  Businesses are not ordered to go out of business. If you are not an essential business and have a facility within any of the affected counties, you may continue “minimum basic operations,” which include performing activities necessary to maintain the value of the business’s inventory, ensure security, process payroll and employee benefits, or for functions related to this list. You are also permitted to conduct the necessary activities to facilitate employees of the business to be able to continue to work remotely from home. You must, however, observe the past COVID-19 social distancing protocols.

• What can your employees do if they cannot work or their hours are reduced?
  
  The California Employment Development Department (CEDD) is advising that employees who cannot work or who are experiencing reduced hours due to COVID-19 may apply for disability insurance or unemployment insurance. The CEDD’s guidance is available here.  

• How long are the Orders in place?
  
  The Orders currently run through April 7, 2020, though they could be rescinded earlier or extended.

• How will the Orders be enforced?
  
  Law enforcement (the police and local sheriff) is tasked with ensuring compliance with and enforcing the Orders, and violation may constitute a misdemeanor. However, local officials have indicated that they do not want to resort to criminal liability unless flagrant violations are observed.

In summary, it is important for all businesses to take additional steps now in order to mitigate their risk of suffering negative impacts from COVID-19. For more information about recommended steps, please contact your Foley relationship partner. For additional web-based resources available to assist you in monitoring the spread of COVID-19 on a global basis, you may wish to visit the CDC and the World Health Organization. 

フォーリーは引き続き関連する進展についてお知らせいたします。この困難な時期における事業支援のための知見とリソースについては、フォーリーの新型コロナウイルス情報センターをご覧ください。