Note: This article was posted on August 12, 2020 at 9:30am PDT. Because the COVID-19 situation is rapidly changing as the federal government and State of California continue to fight this pandemic, individuals and businesses should consult with counsel for the latest developments and updated guidance on this topic.

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Senate Bill 4317, or the “SAFE TO WORK Act,” would provide employers engaged in interstate commerce with extensive immunity from liability for COVID-19 related claims. The Act was introduced to the United States Senate by Texas Senator John Cornyn on July 27th, and is meant to “lessen the burdens on interstate commerce by discouraging insubstantial lawsuits relating to COVID-19 while preserving the ability of individuals and businesses that have suffered real injury to obtain complete relief.”

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The Act, as it is currently drafted, offers sweeping liability protections to many businesses, non-profit organizations, schools, and healthcare providers that have made “reasonable efforts” to comply with applicable public health guidelines. Significantly, the Act establishes a more rigorous evidence standard, limits compensatory damages, and prohibits punitive damages for COVID-19 exposure claims, except in the case of intentional misconduct. The Act establishes a one-year statute of limitations for COVID-19 exposure claims, and covers business actions, services, activities, and accommodations that occur between December 1, 2019 and the later of either the end of the coronavirus emergency declaration or October 1, 2024.

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While the Act creates a floor for liability, it does not preempt state laws that create further liability limitations. The Act also does not preempt or supersede stricter workers’ compensation laws, government enforcement actions, intentional discrimination claims, or maintenance and cure benefits.

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Resources for California Employers

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Although the “SAFE TO WORK Act” could potentially protect businesses from liability for COVID-19 exposure claims, it is important that employers follow appropriate guidelines to mitigate the risk of COVID-19 exposure in the workplace and create and abide by a documented return-to-work policy.

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Read more on Creating a Return to Work Policy here.

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Read more on California’s Industry Guidance to reduce risk here.

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Read the California State’s Employer Playbook for a Safe Reopening here.

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Read the full text of the draft of the pending “SAFE TO WORK Act” (Senate Bill 4317) here.

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If you have questions regarding this article, contact The Maloney Firm at 310.540.1505.

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