CEO DATELINE - Groups seek clarification on essential business exemptions
CEO DATELINE - Groups seek clarification on essential business exemptions
- March 30, 2020 |
- Walt Williams
As multiple states and communities order companies to temporarily close to slow the spread of COVID-19, three of the nation's largest business groups are asking governors for clarification about what businesses qualify as "essential" and can remain open.
The U.S. Chamber of Commerce, Business Roundtable and National Association of Manufacturers sent a joint letter to the National Association of Governors on Friday asking for state and local governments to adopt a "uniform approach" to granting exemptions from stay-in-place orders.
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In particular, the groups want local elected leaders to follow Department of Homeland Security guidelines when determining what counts as "essential" business and critical infrastructure.
"The lack of clarity around what constitutes ‘critical' and ‘essential' in such designations, and the lack of uniformity in guidance and documentation to ensure that ‘critical' or ‘essential' employees may travel to work locations under travel restrictions, is hampering efforts to respond to this crisis," the groups said. "Fear of running afoul of state and local restrictions has a chilling effect on companies carrying out these essential operations."
While stay-in-place orders may help contain COVID-19, they are having a devastating effect on many businesses. A National Restaurant Association survey of restaurant operators released March 23 found that 3% of respondents have closed permanently because of the pandemic and associated loss of business, with 11% expecting to close permanently within the next 30 days.
Many associations have pressed for exemptions for their industries from stay-in-place orders. The National Products Association, for example, announced Monday the launch of a grassroots campaign to encourage local officials to keep health food stores open during the pandemic. The trouble for many national associations is the decision whether to order businesses closed is made at a state and local level, which has not been a focus for many of those same groups, Politico reported.
"We definitely have this patchwork [of] states stepping in and stepping all over the commerce clause of the Constitution, and we've been dealing with those on a state-by-state basis," Bob Voltmann, CEO of the Transportation Intermediaries Association, told the publication.
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