Reopening Your Business after the Stay-at-Home Order Ends? Here’s What You Need to Pay Attention To!

New reports have shown that the number of coronavirus cases in the United States has exceeded one million, with the number of deaths exceeding 60,000. In the current state of the economy, more than 30,000 are unemployed. The road to economic recovery is still a long way to go. However, with the stay-at-home order lifting soon, many businesses have plans of reopening within the next few weeks.

Although the Governor of California has stated that California is not ready to safely reopen, nor is it any safer to be out and about, many eligible businesses have plans to reopen immediately as soon as the order is lifted on May 15.

With many businesses beginning to resume normal operations, what are some precautions and preparations employers need to take?

Commercial Insurance
Have you made any transformations to your business?

During this time, many employers made adjustments to their commercial insurance and/or workers’ compensation policies based on their business operation conditions.

For example, some restaurants had to close their dine-in operations which reduced the issued salary, leading many to make adjustments to their workers’ compensation policies. In addition, since the revenue has decreased, some employers also made adjustments to their liability insurance. If you’ve made any adjustments to any of your insurance policies, make sure to change it back before you reopen your business!

In response to the current situation of the epidemic, many businesses may have restructured their business or expanded the nature of their business including the types of products they sell. If that’s the case, make sure to notify your insurance agent as soon as possible so that they could adjust your policy to properly cover your business.

For example, during this epidemic, a trading company that originally sold marble tiles and kitchen utensils started importing disinfectant spray and hand sanitizer. This means that the type, quantity and value of the warehouse’s inventory has drastically changed. Another situation, for example, is if a company’s original line of business was manufacturing equipment, but under the epidemic, they started producing masks. Since the material of masks are mostly non-woven fabric, it would make it a flammable product. With all these changes, the employer would need to contact their insurance broker to update their policy. Otherwise, if any accidents were to occur, the insurance company could choose to deny their claim.

Company Health Insurance
How can staying insured make it easier for employees to return to work?

In terms of company group health insurance, many companies have reduced the number of employees and their working hours, which means that the number of those participating in their company’s health insurance has also decreased. Since it takes some time for insurance companies to process any changes, employers might still see the original premium cost on the statement. But don’t worry! During the epidemic, insurance companies allow employers to pay premiums based on the number of those actually insured without paying the total amount on the statement received. Some insurance companies also accept credit card payments and allow employers to delay their payment. Contact your insurance company’s customer service or support team for more details, or feel free to contact us as well!

Due to the current state of the economy, many employers have asked if they could adjust the contents of their policy or even cancel their policy. In terms of your insurance policy, we highly suggest that you do not cancel your policy, but instead, make adjustments if necessary. During this time, many insurance companies’ restrictions are more lenient. Employers can reduce the benefits and the percentage of premiums covered by the employer, also known as “contribution.” For example, if the employer originally covered 100% of premiums, they can consider reducing it to 70% or 50% and the employees would cover the remaining amount.

Many might be thinking, “why shouldn’t I cancel my policy?” The main reason is that those who leave the company may need to purchase COBRA to stay on the company’s group health insurance. If the employer cancels the company’s health insurance, then employees that have left won’t be able to purchase COBRA since the policy no longer exists. Moreover, keeping the insurance policy is one of many ways to prepare for returning to work. Even if every single employee decides to leave and the employer is the only one on the policy, there would be no issue with that. Once the company resumes normal business operations and has new employees or rehires employees, as long as they meet the requirements, they would be able to join the company health plan. The company would not have to wait to reapply for group health insurance again.

Safe and Compliant Work Environment
What actions can you take to avoid potential disruption to your business?

In addition to making adjustments to your company’s insurance policies, it’s also important to prepare the following.

Hygiene and cleanliness in the workplace

Employers are responsible for providing employees with a safe workplace environment which includes providing employees with the necessary supplies for sanitation and disinfection. Employers are advised to provide and prepare face masks/surgical masks, KN90/KN95/protective clothing (if necessary), protective glasses, disinfecting hand sanitizer and disinfecting wipes or spray, antibacterial hand soap, gloves, thermometers, medicine/first aid kit, and more.

Cleaning and disinfectant products such as hand sanitizer and sanitizing wipes should be easily accessible and placed at the entrance of all communal areas including restrooms, conference rooms, break rooms, kitchens, and more.

Stay compliant with the law

It is now required by law for employees to wear masks at the workplace. A distance of six feet between all employees must be kept at all times. Employers must also post the latest labor law notices at their workplace as required by law, including the Families First Coronavirus Response Act (FFCRA) notice. (opens in new tab)

**If your business does not have the most updated 2020 Labor Law Poster also required by law, click here to request a free poster!

Develop a contingency plan for outbreaks

Employers should communicate with their Human Resources Department to design relevant response plans and policies for the outbreak. This includes emergency measures for employees with symptoms such as fever, fatigue, dry cough, shortness of breath, etc., and reminding employees who feel sick to stay home and self-quarantine.

Provide relevant and necessary training

It’s important to provide the necessary training required by law to your employees. Especially during this outbreak, it’s important to provide any training that is relevant to the COVID-19 pandemic.

In terms of workplace harassment, KCAL is providing free online Sexual Harassment Prevention Training courses! California state law requires companies with 5 or more employees to provide this training for all of their employees by January 1, 2021. Whether they are senior managers or newly hired employees, as long as they are on the payroll, they are required to take the training.

During these times of difficulty and uncertainty, KCAL will be here to assist you as best as we can. Let’s overcome and fight against this epidemic together!