The Denver Post

Companies want virus-related protection

- By Ana Swanson and Alan Rappeport

WASHINGTON» When Jonathan Corpina, a senior managing partner at Meridian Equity Partners, returned to work on the floor of the New York Stock Exchange in late May, he was met with temperatur­e screenings, hand sanitizer stations, plexiglass barriers — and a liability waiver.

The stock exchange required Corpina and others who work there to acknowledg­e that returning to work could expose them to the coronaviru­s and to promise not to sue if they were infected. Corpina said that he felt comfortabl­e with that risk and that he believed other companies would most likely follow suit.

“This is not something that is going to be unique to this building, in my opinion,” he said of the waiver.

Whether companies are liable if their workers and customers catch the coronaviru­s has become a key question as businesses seek to reopen around the country. Companies and universiti­es — and the groups that represent them — say they are vulnerable to a wave of lawsuits if they reopen while the coronaviru­s continues to circulate widely, and they are pushing Congress for temporary legal protection­s they say will help get the economy running again.

But that idea has engendered stiff opposition, particular­ly among congressio­nal Democrats and labor unions, who say some businesses are doing too little to protect vulnerable workers and that such a liability shield would only encourage reckless behavior.

For the moment, states and companies are taking matters into their own hands. States like Alabama, North Carolina, Oklahoma and Utah have issued executive orders or passed legislatio­n to give businesses more protection if their workers or customers get the coronaviru­s.

Amusement parks, salons, real estate businesses and gyms have begun requiring attendees, customers and workers to sign liability waivers pledging not to sue. Even attendees registerin­g for President Donald Trump’s upcoming rallies must acknowledg­e the risk of exposure to the coronaviru­s and promise not to sue.

“By attending the rally, you and any guests voluntaril­y assume all risks related to exposure to COVID-19 and agree not to hold Donald J. Trump for President, Inc.,” and any of its employees or affiliates liable for illness or injury, a disclaimer on the registrati­on site for rally tickets reads.

The debate is coming to a head in Washington as Congress considers its next round of coronaviru­s legislatio­n. Sen. Mitch McConnell, R-Ky., the majority leader, has singled out liability protection as his conference’s top priority, with White House officials echoing that sentiment. Lawmakers expect that some version of coronaviru­s relief could pass through both chambers before the end of the summer.

“No bill will pass without it,” Rep. Kevin McCarthy of California, the minority leader, said in May of liability protection­s.

The U.S. Chamber of Commerce, the National Associatio­n of Manufactur­ers and other powerful lobbying groups have thrown their weight behind such protection­s, saying that lawsuits could devastate companies that are already struggling financiall­y and that the threat of litigation could mean some businesses choose to remain shut, crippling efforts to restart the economy.

Conservati­ve groups including the Koch Network and FreedomWor­ks have warned of a wave of “predatory, self-serving lawsuits” from trial lawyers who have “plotted to line their pockets with COVID-19 related lawsuits.” Last month, dozens of industry trade associatio­ns, including those representi­ng grocers, retailers and restaurate­urs, told Congress that without protection­s, the threat of litigation could put many small businesses permanentl­y out of business.

But trial lawyers — as well as some legal experts — say the risk of lawsuits from workers or customers may be overstated.

“The idea that there is going to be this cavalcade of lawsuits is a total myth,” said Linda Lipsen, chief executive of the American Associatio­n for Justice, which represents trial lawyers. “Outside of meatpackin­g plants, cruises, nursing homes, veterans homes and other hot spots, there is not going to be that race to the courthouse because there are already all of these barriers to getting to court.”

Lipsen said current laws already protected companies from lawsuits if they took “reasonable” precaution­s to safeguard their workers. And with the virus widely circulatin­g, it is difficult for lawyers to prove in court that employees were infected at work rather than while commuting or shopping for groceries.

Tracking suggests that, at least for the moment, such lawsuits are rare in the United States.

According to data collected by the law firm Hunton Andrews Kurth, 2,645 coronaviru­s-related lawsuits had been filed in the United States this year as of June 11. But the majority of those disputes relate to insurance coverage, prisoner and detainee petitions, and civil right cases, including challenges to stay-athome orders. Only 49 of the cases related to conditions of employment, including exposure to the coronaviru­s at work or a lack of protective gear, while 77 related to unlawful terminatio­n, according to the law firm.

The database also records only seven personal injury cases from consumers who were exposed to the coronaviru­s in a public place and two wrongful death cases from public exposure.

Lipsen said the current push for liability protection­s reflected a long-standing effort by corporatio­ns to secure more legal protection­s in times of crisis, including after the Sept. 11 attacks and swine flu epidemic.

Unions including the United Steelworke­rs, the United Farm Workers, the Teamsters and the American Federation of Teachers have also protested expanded liability protection­s, fearing that they would lead to laxer safety standards for workers. Many essential workers are already being forced to choose between their safety and a paycheck, union leaders say, and those risks are falling disproport­ionately on workers of color.

The White House has so far fought against issuing detailed standards for businesses, arguing they would infringe on religious rights and risk damaging the economy by making it too onerous for businesses to reopen.

In May, the White House rejected as too prescripti­ve detailed draft guidance from the Centers for Disease Control and Prevention for businesses, schools, churches and other public places. The CDC later released abbreviate­d guidelines in the form of flowcharts to guide businesses in their decisions to reopen.

Liability is typically regulated at the state level, and several states have already expanded protection­s for businesses that are reopening. California, Florida, Kentucky, Michigan, North Dakota and others have also revised workers’ compensati­on rules to allow health care workers, first responders and some other essential workers to be compensate­d if they get sick from the coronaviru­s. (Workers’ compensati­on typically does not cover infectious diseases, like the flu.)

Several lawsuits have been already filed, including one by the widow of a Safeway distributi­on center employee who recently sued for negligence and wrongful death, saying her husband had been forced to work in close quarters with other sick employees.

 ?? Ting Shen, © The New York Times Co. ?? A cashier wears a mask while working at a Whole Foods Market in Washington, D.C., in April. Businesses are lobbying Congress for protection­s against coronaviru­s-related lawsuits, but unions and Democrats fear a liability shield would encourage reckless behavior.
Ting Shen, © The New York Times Co. A cashier wears a mask while working at a Whole Foods Market in Washington, D.C., in April. Businesses are lobbying Congress for protection­s against coronaviru­s-related lawsuits, but unions and Democrats fear a liability shield would encourage reckless behavior.

Newspapers in English

Newspapers from United States