Over the last week, 18 states, including New York and California, placed a "shelter in place" policy for millions of residents to avoid spreading the COVID-19 coronavirus. With the pandemic gripping the globe, in-house counsel are trying to find ways to keep business operations afloat, and one question that's been coming up is whether a company is an "essential business."

The U.S. Department of Homeland Security through its Cybersecurity & Infrastructure Security Agency released an order identifying an essential business as part of the "critical infrastructure industry," as in providing health care services, pharmaceutical needs and food supply.

In-house counsel have to stay on top of the news as it changes every day, lawyers told Corporate Counsel. One responsibility in-house counsel can do is provide essential service letters for employees to carry in transit and letters for facility personnel to hand to inspectors in case of a facility visit, according to Thomas Lee, a Bryan Cave partner in San Francisco.

How has your company been affected as a "nonessential business?" Or how did you help your company keep operating as an "essential business?" Let me know at [email protected].

"'Force majeure.' I've heard that phrase more in the last three days than in my 30 years of law practice."

Louis Chodoff, a partner at Ballard Spahr in Cherry Hill, New Jersey, told Corporate Counsel in our second story covering the increase in force majeure claims in the wake of the COVID-19 pandemic.

What's Happening

 

In High Demand

To combat the shortage of N95 masks and other necessary medical supplies, President Donald Trump issued an executive order under the Defense Production Act of 1950. The order allows the federal government to require manufacturers to distribute their supplies to the government amid the growing COVID-19 pandemic.

In-house counsel at companies that make or can make medical supplies are now helping their companies control the high production rate for these supplies. Angela Styles at Akin Gump Strauss Hauer & Feld said many companies over the years have sent their production of N95 masks overseas, so there's uncertainty on how the law will impact supplies not made in the U.S.

China had restricted exports of N95 masks to handle its outbreak. If an order can't be fulfilled, Robert Tompkins at Holland & Knight said contractors should advise that the foreign supply chain could impact the ability to fulfill an order and consider rejecting the order.

A major hurdle goes back to the "shelter in place" orders with employees unable to work in facilities to help manufacturers fulfill these government contracts.

 

Enough Already!

Is your inbox inundated with invitations for COVID-19 webinars from law firms? It turns out some in-house counsel are already tired of being asked to join webinars.

What do in-house counsel need instead? Apparently, a one-pager on the COVID-19 legal issues of the day, according to a Twitter thread that went viral that had in-house counsel and Big Law partners chiming in.

 

More Time, Please?

Trade organizations and companies such as United Parcel Service and National Association of Mutual Insurance Companies wrote a letter to California Attorney General Xavier Becerra asking for the July 1 enforcement date of the California Consumer Privacy Act to be pushed back.

The reason? The novel coronavirus pandemic has interrupted business operations to the point some companies are already laying off employees to avoid economic devastation. Also, in-house counsel are still waiting for clarification on the enforcement rules.

On the Move

 

Avis Budget Group said its longtime general counsel and executive vice president Michael Tucker is leaving as the car rental industry faces immediate revenue losses related to the novel coronavirus. Tucker will be replaced by corporate secretary Jean Sera, who has been with Avis since 2006.