Audit, Compliance and Risk Blog

On June 18, 2020, the U.S. Occupational Safety and Health Administration (OSHA) issued new guidance to assist businesses deemed “non-essential” during the COVID-19 pandemic as they reopen their workplaces. OSHA’s new “Guidance on Returning to Work” sets forth a number of basic principles that OSHA recommends guide employer actions, including specific examples. The document also reminds readers that responsibilities always apply under OSHA’s Employer’s General Duty Clause, references a number of existing OSHA standards that apply to re-opening activities and reopened workplaces, and identifies other sources of guidance and requirements.

President Trump has issued the latest in a series of executive orders (EOs) to reduce and repeal formal federal regulations. This month’s EO directs federal agencies to do so in order to “support the economic response to the COVID–19 outbreak” (EO 13924 “Regulatory Relief To Support Economic Recovery”).

The federal Chemical Safety and Hazard Investigation Board – which usually refers to itself as the Chemical Safety Board or CSB – conducts independent investigations of major chemical accidents, issues accident-specific findings, and offers specific or general recommendations for improved chemical handling and regulation (I wrote about its first set of rules here). In May, CSB issued “Best Practice Guidance for Corporate Boards of Directors and Executives in the Offshore Oil and Gas Industry for Major Accident Prevention.” This Guidance represents CSB’s latest attempt to enhance organizational attention to safety culture issues.

Employers considering how to protect their employees from coronavirus infections can look to a growing variety of general and specific guidance. I recently wrote about the latest coronavirus-specific guidance from the Occupational Safety and Health Administration (OSHA) and the Centers for Disease Control and Prevention (CDC) (see HERE). 

Effective March 2, 2020, the Environmental Protection Agency (EPA) has issued rules governing the agency’s administrative civil inspection procedures (40 CFR s. 31.1). These new rules meet a requirement created by President Trump’s Executive Order (EO) 13892 (“Promoting the Rule of Law Through Transparency and Fairness in Civil Administrative Enforcement and Adjudication”), issued October 9, 2019 (I wrote about this EO HERE). The new rules apply to on-site civil inspections conducted by EPA personnel, and to federally credentialled contractors and Senior Environmental Employment (SEE) employees conducting inspections on EPA’s behalf; they do not apply to criminal investigations, nor to state and state-credentialled inspections.

Effective May 26, 2020, the Occupational Safety and Health Administration (OSHA) revised its (interim) enforcement guidance for its inspectors and personnel use when investigating whether an employer properly classified a workplace illness involving COVID-19. This guidance expands and replaces the version OSHA issued on April 10 -- it does not affect the agency’s broader enforcement guidance for cases considering whether an employer unreasonably exposed employees to COVID-19 (which I wrote about here), although it’s easy to imagine scenarios where inspectors could be called upon to investigate both types of potential violations. OSHA states this guidance will remain effective until the present public health crisis ends, unless revised again.

As Canadian employers begin to engage in the “re-opening” of the local economy, they face numerous legal and logistical challenges. Health and safety, privacy and human rights issues abound, and further uncharted waters lie ahead.

BLG’s Labour and Employment team provides a non-exhaustive list below of issues and challenges employers need to keep in mind.

Compliance with employee health and safety and public health requirements

Until effective vaccines and/or therapies for COVID-19 become available, employers will need to continue taking all reasonable steps to ensure that their workplaces are compliant with public health guidelines and requirements as well as their obligations to protect the health and safety of employees. Employers will need to remain current and proactively assess their workplaces, and make modifications in planning for the return of their employees. This will affect physical workspaces and require that employees are properly informed, equipped and monitored to ensure compliance.

Effective March 12, 2020, the US Department of Justice (DOJ) prohibits its US attorneys from entering into settlements in which DOJ lowers penalties for defendants that agree to conduct “supplemental environmental projects (SEPs)”, if the SEP involves payments to a third party. This action is the latest in a series of DOJ moves against SEPs since President Trump took office. The first such step was a June 2017 DOJ management memorandum directing US attorneys NOT to agree to SEPs that include payments to third parties (I wrote about that memo HERE). The second was an August 2019 memorandum restricting use of SEPs in Clean Water Act (CWA) cases against state and local governments, in which DOJ rejected arguments that recent legislation allows them (I wrote about that memo HERE).

The worldwide spread of the COVID-19 virus has affected commercial operations, logistics and finances across industry sectors. The social, health and economic uncertainty caused by the pandemic puts pressure on the limited resources and budgets of individuals and businesses alike. In such circumstances, we can expect the number of legal disputes to increase now and into the future.

When someone receives occupational direction and/or compensation from more than one entity, who’s the boss? Sometimes it’s obviously one or the other, sometimes it’s not clear which one is, and sometimes the answer may be “both.” These unclear situations are fairly common; consider franchise operations where the franchisor exerts some controls over how the franchisee does business, workplaces where “temp agencies” supply workers who receive at least some directions from the host but get paid by the agency, and worksites where a prime contractor integrates services by subcontractors and their employees. Identifying the boss(es) has important implications, not just for who writes a paycheck but for who is subject to legal responsibilities and prohibitions.