With many employees around the world staying home amid the novel coronavirus pandemic, employers had to find ways to keep operations going. And, for some, that meant having employees work from home.

Historically, big law, in which many in-house counsel have career roots, hadn't embraced telecommuting. This new normal that could extend for months brought up compliance and risk questions for in-house counsel.

One of the major concerns surrounds preparation. Does your employee have a computer at home, and if not, does the employer need to provide one? Does your employee have a secure internet connection, and if not, does the employer need to create a virtual private network? The cybersecurity risks around setting up an employee at home can mount, with the pressure not only on the legal team but also on the human resources, information technology and security teams.

"You have IT systems and IT staff that are stressed in a way that is unprecedented, and you have just a general set of circumstances in which people are rushing and scrambling to get through the day and meet their business needs and all that adds up to a case of real risk," David Newman, head of the coronavirus task force at Morrison & Foerster and partner in the global risk and crisis management group, told Corporate Counsel.

As companies jump on the telecommuting bandwagon amid the COVID-19 pandemic, we may see more in-house lawyers trying to figure out how to handle employee relations. Did your company have to come up with a new telecommuting policy as a result of the coronavirus? Please let me know at [email protected].

"If you are a highly regulated industry, [employees] may not be able to work from home because the data security requirements cannot be met. If you can't meet those standards, maybe you should not let them work from home."

- Jena Valdetero, Bryan Cave Leighton Paisner co-leader of the data privacy and security team in Chicago and head of its data breach response team

What's Happening

 

Following the Rules

Companies are still planning out budgets to comply with newer data privacy laws, such as the California Consumer Privacy Act and the General Data Protection Regulation, according to a recent FTI Consulting survey.

The survey found 60% of the respondents―more than 500 leaders of large U.S.-based companies who hold titles in senior and middle management roles―do not have the resources to become fully compliant.

 

Paying for Compliance

The impact of the novel coronavirus will have more companies facing compliance issues. Compliance needs great attention as seen with this case involving U.S. Bank, where a former chief operational risk officer was fined a $450,000 civil penalty by the Financial Crimes Enforcement Network.

It may be the first time the regulator penalized a bank compliance officer over anti-money laundering failures.

Covering COVID-19

If you're looking for guidance, take a look at our latest stories on how in-house counsel are being impacted by the novel coronavirus pandemic.

Here Are Some Answers to Employers' Many Legal Questions About the Coronavirus

How Chief Lawyer for Global Medical Supply Firm Is Handling Coronavirus Crisis

CLOC Cancels Vegas Institute Amid Coronavirus Pandemic

Diversifying Law

See how in-house counsel are dealing with diversity and inclusion in the legal department.

Silicon Valley General Counsel Addresses Unconscious Bias in the Workplace

In-House Counsel at Mueller Industries, Tesla Win National LGBT Bar Awards

Women-Owned Law Firms Should Put on CLEs to Grab In-House Counsel's Attention

On the Move

 

Crowned the new general counsel at Wells Fargo, Ellen Patterson will be using her expertise from a recent stint at TD Bank to help Wells Fargo with its yearslong legal trouble. Also, outgoing GC Allen Parker will be leaving with $8.3 million, thanks to his service as interim CEO.

Brian Brooks, the chief legal officer of digital asset exchange Coinbase, is set to become the chief operating officer and first deputy comptroller of the Office of the Comptroller of the Currency.

David Glockner will soon begin his newly created role as Exelon's executive vice president of compliance and audit at the utility giant's headquarters in Chicago.