Failure to Follow NYS & Federal COVID-19 Requirements May Significantly Hurt Your Bottom Line in Business and at Work

As the New York Forward business reopening process continues (and I continue to support clients on finalizing and implementing their required safety plans), NYS has received over 25,000 complaints about businesses (mostly bars / restaurants, at this writing) failing to comply with NYS and Federal COVID-19 safety requirements – e.g., wearing of masks, physical distancing, etc. Governor Cuomo over the weekend in light of those 25,000 recent complaints reported to NYS reminded bars in particular that failure to comply with COVID-19 safety and physical distancing guidelines (e.g., violations) will result in a return to business closure and other penalties:

Specifically, Mr. Cuomo said that bar patrons in Manhattan and the Hamptons on Long Island had been flouting the rules, and warned that if local officials did not crack down on such behavior the state could be forced to suspend re-opening plans. (And take away NYS liquor licenses – emphasis mine.)

“There is a very real possibility that we would roll back the reopening in those areas,” he said, adding that if people didn’t abide social distancing rules, including wearing masks, a second wave of infections was almost inevitable. “It will come. And once it comes, it’s too late.”

Source: New York Times

Businesses unfamiliar with state and Federal safety requirements may not fully understand the financial impact of failure to follow COVID-19 safety requirements. Manufacturing, distribution, food service and related industries with more experience know all too well the significant negative bottom-line impact violations and their penalties can have on the financial viability of a business. (One memorable and frustrating penalty was an employee in another state who deliberately inserted his hand into a conveyor as an income-generating move – negotiating the state OSHA penalty down from an initial six-figure dollar amount to a few thousand dollars was an educational experience, to say the least.)

Below is a list of penalties and fines on the NYS and Federal levels for noncompliance with COVID-19 requirements, including but not limited to:

From the NYS Department of Health:

Governor Cuomo also announced the state is increasing the maximum fine for violations of the state’s social distancing protocol from $500 to $1,000 to help address the lack of adherence to social distancing protocols. The Governor reminded localities that they have the authority to enforce the protocols.

From the NYS Department of Labor:

Violations of Labor Law

Violations of any provision of the Labor Law, the Industrial Code, or any rule, regulation, or lawful order of the Department of Labor is a misdemeanor and is punishable by fine or imprisonment, or both. The Labor Law also provides for the imposition of civil penalties for each violation of labor law governing the employment of minors under 18 years of age by an employer. The penalties are fines of up to $1,000 for the first violation, $2,000, for the second, and $3,000 for the third and subsequent violations. The largest penalty for injury or death is triple the maximum penalty allowed under the law for such a violation.

An employer may not penalize or discharge an employee because they have complained to the Labor Department that the employer has violated any provision of the Labor Law.

From the Occupational Safety and Health Administration (OSHA):

OSHA Penalties

Below are the maximum penalty amounts, with the annual adjustment for inflation, that may be assessed after Jan. 15, 2020. (See OSHA Memo, Jan 10, 2020).

Type of Violation	Penalty
Serious Other-Than-Serious Posting Requirements	$13,494 per violation
Failure to Abate	$13,494 per day beyond the abatement date
Willful or Repeated	$134,937 per violation

(OSHA has indicated that COVID-19 complaint investigations will initially will be conducted virtually, increasing the immediacy of their investigation of COVID-19 requirement violations.)

How will you ensure that your organization follows all NYS and Federal COVID-19 requirements to avoid the potentially significant impact to your bottom line, in business and at work?