Does your business pass the ‘essential’ test?

It's hard to think of anything that has so radically altered society quite like what's occurred with the coronavirus crisis. Typically bustling cities and commercial districts, such as Times Square in New York City or the Magnificent Mile in Downtown Chicago, are practically ghost towns. In fact, more than 80% of counties throughout the country remain in lockdown mode, according to The Wall Street Journal. The counties involved account for a whopping 96% of the U.S. annual economic output.

The only businesses whose doors remain open are those considered "essential," such as grocery stores, pharmacies, restaurants that provide takeout and several others.

It raises the question: What, exactly, is an "essential" business? For the millions of companies that rely on customer traffic for cash flow and other operating expenses, they certainly consider their ability to remain open as not just essential, but consequential.

Does your company meet the "essential business" test? Much like the virus itself, the answer to this question is uncertain.

States deem what is and isn't essential
Generally speaking, it's up to cities and states to determine what is and isn't a business whose products and services are fundamental to people's well-being. For instance, in New Hampshire, hair, nail and beauty salons are largely closed for the foreseeable future, but in Arizona, Gov. Doug Ducey is permitting them and similar "personal hygiene service" companies to keep their previously scheduled appointments.

No one knows for sure when these stay-at-home orders will be over with. Several are slated to sunset in early May, although those end dates aren't written in stone. In the meantime, the Department of Homeland Security has issued some basic guidelines as to which companies qualify as essential. Aside from the ones previously mentioned, they include:

• Big-box stores
• Garbage and recyclables collection
• Daycare centers
• Banks and credit unions
• Gas stations
• Auto repair shops
• Veterinary clinics
• Agriculture and food processing
• Health care facilities
• Vehicle rentals
• Organizations that provide assistance to needy families
• Farmers' markets
• Convenience stores

Wherever your business is located, it's worth getting in touch with your local state representative or visiting the state's website. Most maintain comprehensive listings that detail what companies are authorized to stay open. For example, in Massachusetts, alcoholic beverage vendors and dry cleaners are considered essential after Gov. Charlie Baker decided to expand the exemption list. Other governors are taking similar measures in an effort to gradually get local economies back to some semblance of normalcy.    

We're here for you
Small businesses are the backbone of America's productivity. Some may never be able to reopen once the shutdown finally ends. If you consider your business essential, Hudspeth Law Firm may be able to help. We can provide you with the consultation and business advice that can help you get through this ordeal as unscathed as possible. Contact us today; we're happy to be off assistance to get you through this difficult time.

Categorised in: Business Law

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