Commerce
August 03, 2020
Sills Cummis’ Ted Zangari, Chair
of the Outside General Counsel Multi-Disciplinary Practice, was asked by Commerce
– how are you advising clients to avoid legal risks during the pandemic?
What are some best practices for businesses?
According to Mr. Zangari, “Risk
avoidance stemming from the current pandemic touches virtually every aspect of
a business. Existing contracts must be reviewed for the ramifications of
delayed performance. Insurance policies must be analyzed and claims should be
filed accordingly. Dialogue must be established with creditors, especially
landlords, lenders and vendors, with the goal of preserving and stretching cash
reserves wherever possible. Likewise, proactive collection efforts must be made
with those customers who are responsible for significant accounts receivable.
Employment issues must be addressed with regard to remote working protocols,
proper implementation of furloughs and reductions in force, protection of
employees, and treatment of sick employees, particularly those whose symptoms
are associated with COVID-19. Finally, as businesses contemplate the resumption
of “’normal’” operations at their facilities, steps must be taken to: clean and
ready the physical plant; prepare for the return of the workforce, including
decisions on who returns and how shifts/schedules are managed; establish new
controls on access that include enforcement of safety/health checks and
enhanced visitor/delivery policies; create social distancing, including
adjustments to the floor plan and internal paths of travel; and increase
workplace hygiene through the use of touchless devices, elimination of clutter,
and more frequent and thorough cleaning regimens.”