Law Firms Shift to Handle COVID-19 Related Legal Matters

COVID-19 isn’t only causing an increase in divorce and bankruptcy filings. The novel virus that affected the entire world has caused US businesses to face lawsuits and adapt to sudden federal and state regulations, supply chain issues, a decrease in revenue, and an increase in risk to their workforce. Many law firms shifted their practice strategies to advise businesses on how to handle COVID-19 related risks as well as both file and defend claims associated with the virus and the changes in the state and federal regulations. Some of the most common areas include wrongful death claims related to COVID-19, worker’s compensation, supply chain disruption risks, and employee rights.
 

COVID-19 Wrongful Death Lawsuits


One of the first COVID-19 wrongful death lawsuits filed against an employer was Toney Evans v. Walmart, Inc., et al. Wando Evans worked for a Walmart Supercenter in Evergreen Park, Illinois. He contracted COVID-19 and passed away from complications on March 25, 2020. The lawsuit, which also names the shopping center owner as a defendant, alleges that employees who notified Walmart that they had symptoms were ignored and kept working, the store did not use proper disinfectant procedures or provide workers with PPE, did not use state or federal distancing guidelines, did not evaluate its employees or new employees for symptoms, and did not follow CDC guidelines for developing a disease response plan or implement a disease prevention plan (among other claims). The shopping center owner is accused of negligence because of allegedly not forcing Walmart to close down because they should have known the high volume of traffic would increase the risk of spreading the virus, not sterilizing the interior or exterior of Walmart, failing to force Walmart and its customers to follow proper procedures to slow the spread of COVID-19, not implementing or enforcing federal distancing guidelines, and failing to follow the CDC guidelines to prevent the spread of COVID-19 in a commercial facility.

Of course, that’s not the only wrongful death claim filed against an employer. On May 12, 2020, CBSNews.com reported that a meat processor in Pennsylvania, JBS, was being sued by two families whose loved ones died as a result of COVID-19 complications. According to the CBS story, JBS is the second largest meat processing plant in the United States. More than 50 of their workers tested positive for the virus. JBS did not begin providing masks for workers until April 2020. It also did not require workers to report illness or self-quarantine until that time. The article also states that another lawsuit was filed in Dallas, Texas on behalf of Hugo Dominguez, a forklift operator for Quality Sausage, who was told to keep going to work or he would be laid off.

The CBS article includes a comment from a former OSHA administrator who pointed out that OSHA set no specific requirements for employers to protect workers. There are only CDC guidelines. However, OSHA does have a general duty clause that requires employers to provide employees with a workplace that is “free from recognized hazards that are causing or likely to cause death or serious physical harm.”

COVID-19 and Worker’s Compensation Claims

Whether or not worker’s compensation will cover COVID-19 depends on many factors, but that’s often where a law firm comes in. Each state has its own regulations related to worker’s compensation and how it works. According to ABAJournal.com, when an employer is fairly certain that an employee contracted COVID-19 on the job, encouraging the use of worker’s compensation since it was contracted while they work may make good financial sense for both the employer and the employee. It helps the employee get the medical care they need and may also provide them with at least a portion of their wages while they recover. Meanwhile, it helps the employer by being a less expensive option than an immediate lawsuit (although an employee may still decide to try and sue if they feel as if worker’s compensation didn’t treat them fairly).
According to the National Conference of State Legislatures, 14 states currently extended their worker’s compensation plan to include COVID-19 as a work-related illness. However, Alaska, Minnesota, Utah, and Wisconsin limit these claims only to first responders and healthcare workers. Illinois’ worker’s compensation program covers COVID-19 as work-related illness for all essential workers. Wyoming covers it for anyone who works.

To understand how COVID-19 is covered by the worker’s compensation system, it is best to research the matter for each state. While NCSL has a listing for each state, it is outdated. For example, Oklahoma isn’t listed on their site, but James Biscone, a lawyer in Oklahoma, worker’s compensation may cover COVID-19 in certain circumstances.
However, for businesses required to carry worker’s compensation, an increase in claims filed even as a result of an unexpected pandemic could result in more legal fees to defend their business, higher insurance premiums, and fewer workers. Law firms skilled and knowledgeable in the CDC guidelines, OSHA, and the state and federal regulations may be a business owner’s best bet in protecting their business.

Supply Chain Disruption Risks

We all remember the panic over toilet paper and hand sanitizer. Yet, personal goods are just one of the areas where a supply chain disruption was felt; and a large part of that was panic buying by consumers and not a true supply chain disruption matter. However, many industries had (and still experience) a legitimate supply chain disruption because of COVID-19. It’s created a true legal risk for their business.

One major cause of supply chain disruption for many businesses was lack of funding to purchase what they needed. Many applied for government backed loans that seemed like a great solution at the time, but they may not have read the terms and conditions when they applied. Then, the discover that they are required to audit their business practices to remain in compliance with the terms of the loan. Many law firms have shifted to provide the audit assistance required to maintain compliance with the loan standards. Many also offer a general counsel experience to help guide the businesses throughout the remainder of the loan repayment process as well as to assist in guiding the business with any other potential supply chain disruption risks they may encounter.

From a legal perspective, this may include the re-negotiation of existing contracts if the business is unable to fulfill orders because of the pandemic. It may require negotiations with new vendors to prevent supply chain disruption. Additionally, the pandemic has reintroduced the importance of specific laws and regulations that impact relationships that are impacted by the supply chain management process, such as the Export Administration Regulations, as well as how these laws intersect with intellectual property.

Employee Rights

Many law firms have updated their websites to reflect that they help employees protect their rights in their workplace. Some of the updates including helping employees enforce their rights to use FMLA, the Families First Coronavirus Response Act, and other laws specific to their state that cover workers who may be exposed to COVID-19; ensuring the receive all of the pay they are entitled to receive either from their paid time off they’ve earned and requested, their paid vacation time they’ve earned and requested, their overtime pay, and other wage and hourly pay matters; whether employees may be fired if they are diagnosed with COVID-19; whether they have the right to work from home because of the pandemic and / or because they have children who are virtually schooling because of the pandemic; and whistleblowing matters.
Many law firms represent employers as well as guide them on how to best protect themselves as well as their employees during the pandemic. The guidance offered is personalized to the business based on industry and need combined, of course, with CDC best practice guidelines for safety as well as any state or local regulations for the business to be open during the pandemic.

See also:
 

• How to Become A Workers’ Compensation Lawyer
• General Counsel Job Description
• Law School classes during Coronavirus