How Essential Businesses Can Operate During the Pandemic

COVID-19’s Expansive Definition of “Essential Business”

California’s “Stay-At-Home” order broadens Bay Area counties’ “Shelter-In-Place” orders essentially orders businesses except “Essential Businesses” to cease operations and send employees home. There are additional exceptions for “Minimum Basic Operations.” All California business owners need to understand how the orders apply so they can make critical decisions regarding their companies, employees and their futures. Contact Stuart Hays, Managing Partner, [email protected], (650) 520-9771.

Essential Businesses are defined as Grocery Stores, Certified Farmers’ Markets, Farm and Produce Stands, Supermarkets, Food banks, Convenience stores, and other establishments engaged in the retail sale of canned food, dry goods, fresh fruits and vegetables, pet supply, fresh meats, fish, and poultry, and any other household consumer products . . . This includes stores that sell groceries and also sell other nongrocery products. More broadly, Essential Businesses are those involved in:

  • Food cultivation, including farming, livestock, beverage production and fishing
  • Businesses that supply other essential businesses with the support or supplies necessary to operate, and
  • Businesses that ship or deliver groceries, food, goods or services directly to residences

Bullet Point No. 2 could be the Exception that Swallows the Rule. Please contact Transbay Law Group, PC to see if your business could qualify. Remember, “Shelter-In-Place” orders permit “Minimum Basic Operations” regardless of whether your business is defined as an “Essential Businesses”.

1
2

“Minimum Basic Operations” include “the minimum necessary activities to maintain the value of the business’s inventory, ensure security, process payroll and employee benefits, or for related functions.” It is important to recognize that all activities conducted while the “Shelter-In-Place” orders are in effect, whether such activities fall under the definition of “Essential Businesses” or “Minimum Basic Operations,” must follow all CDC social distancing, hand washing and other requirements.

If you decide to continue business operations as an “Essential Business” or for purposes of maintaining “Minimum Basic Operations”, document the bases for your conclusions and keep safety of employees in the forefront of considerations.

Contact Transbay Law Group, PC

As companies track the disruptive impacts of COVID-19, policies should be scrutinized by professional coverage counsel. Please contact Stuart Hays, Managing Partner, Transbay Law Group, PC at (650) 520-9771 or [email protected].

3