Examine Both State and Federal Law

The State of Michigan, as well as the federal government, have passed various regulations designed to prohibit discrimination and encourage diversity in the workplace. Following Title VII of the Civil Rights Act of 1964, the concept of what diversity means in the workplace has changed substantially. In the 1960s, diversity referred to differences like skin color, national origin, race, religion, and sex. Title VII of the Civil Rights Act prohibits discrimination based on these factors. In recent years, the concept of diversity expanded to include people with disabilities, the elderly (i.e. age), and veterans. The Civil Rights Act of 1964 applies to employers with 15 or more workers.

Some other regulations address diversity in the workplace, which include (but may not be limited to) the Equal Pay Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Pregnancy Discrimination Act. If you have a business located in Michigan, you must remain up to date with Michigan legislation. For example, Michigan’s Elliott-Larsen Civil Rights Act prohibits employment practices that discriminate against an individual based on a variety of factors.

Adequately Train Managers and Workers

The United States Equal Employment Opportunity Commission has the task of enforcing federal laws that prohibit discrimination against job applicants or employees due to their race, color, religion, sex, age, national orientation, or disability. This agency recommends that managers at a company, as well all employees, are sufficiently trained on equal employment opportunity laws. Successful implementation of training programs can provide all people at a company with the information necessary to perform legally and ethically, free from improper behavior. As part of a training program, it is critical to remind all employees of the various policies that are in place. All employees must be held responsible and accountable for their behavior, and face swift corrective action if they violate any laws, policies or rules designed to prevent discrimination. 

Contact a Knowledgeable Corporate Attorney Today

Businesses must navigate critical issues of diversity all the time, and those may have become even more critical during the past year of pandemic. Contact Resnick Law PC today to schedule a free case evaluation. 

Burgeoning Coronavirus Lawsuits

In May 2020, lawsuits were filed against Princess Cruise lines alleging that the company was grossly negligent in exposing passengers to COVID-19. The lawsuit claims that the cruise ship was allowed to go to sea despite the knowledge that previous ship passengers had the disease. The Princess Cruise lawsuit is only one COVID-19 lawsuit of many, and the numbers keep going up. 

To minimize the risk of ending up in a lawsuit, some companies have resorted to what once seemed like drastic measures. For example, there have been several news stories of companies throwing away tens of thousands of dollars in food to avoid potential infection risks.

What Duty Business Owners Have to Customers

In Michigan, business owners have a duty to use reasonable care to protect customers from an unreasonable risk of harm created by dangerous conditions. Business owners must take reasonable care to provide customers with a safe environment. This means that business owners must discover and eliminate dangerous conditions on their premises and avoid creating conditions that could make things unsafe.

In Michigan, a customer’s contributory negligence is not a complete bar to recovery. Given the extensive recommendations about staying indoors and maintaining a six feet distance from others, there is at least some degree of culpability if a person claims to have contracted COVID-19 while patronizing a business in person.

The Role of CDC and MIOSHA Guidelines

While there is no specific requirement that business owners must follow guidelines established by the Centers for Disease Control and Prevention, to avoid third-party liability, it might be a good idea to follow these guidelines to keep customers as safe as possible.

Unlike the CDC, the Michigan Occupational Safety and Health Administration (MIOSHA) has issued workplace guidelines for business owners that include requirements that must be followed. For example, employers must create a written exposure control plan that includes exposure determination and addresses what measures will be taken to prevent worker exposure to COVID-19.

Steps Businesses can Take

Some of the helpful strategies business owners can take to mitigate the risk of coronavirus exposure include:

• Discouraging handshaking
• Informing workers about what they can do to reduce the risk of COVID-19 spread
• Practicing proper respiratory hygiene
• Routine cleaning and disinfecting
• Separating sick employees
• Using sufficient building ventilation

Speak With a Michigan Corporate Law Attorney Today

If you have questions or concerns about how your business can better mitigate liability during the COVID-19 pandemic, it can help to speak with a knowledgeable corporate law attorney. Contact Resnick Law, PC today to schedule a free case evaluation.

What Constitutes Force Majeure

When a “force majeure” event occurs, it prevents a party from performing its obligation under a contract in that either the event could not have been foreseen or could not have been prevented even with care and diligence. While many people think of natural disasters when considering force majeure clauses, this category can also pertain to wars, government actions, and pandemics.

Just because a specifically enumerated event occurs, does not mean that a force majeure clause becomes effective. Instead, for the force majeure clause to come into play, an event must result in “extreme and unreasonable” difficulty or hardship. 

A force majeure event will also not excuse a performance if the failure to perform is the result of a party’s negligence instead of the event itself. If a party to a contract could have prevented the force majeure event, the force majeure will likely not be effective. 

The Role of Force Majeure in Business Contracts

There are several ways that parties can be protected if there is a force majeure in their contract. If a contract’s purpose is frustrated or incapable of being performed, the clause can protect a person through the doctrines of impracticability or impossibility. 

Force Majeure and the Coronavirus

Because force majeure can encompass government actions that make contract performance impossible, these clauses are likely to come into play in various contracts during the COVID-19 pandemic. In this setting, a force majeure might take the form of a lockdown order or other government action that makes it impossible to perform a contract. 

Advice When Considering the Use of a Force Majeure Clause

Some helpful strategies that parties navigating force majeure clauses should remember to follow include:

• If you plan to use the COVID-19 pandemic as a reason to not perform under a force majeure clause, make sure to give the other contracted party ample notice.
• Remember to discuss potential business solutions with the other party. While the coronavirus has resulted in delays in shipment, reduced supplies, and other hardships, it might still be possible to arrive at an acceptable arrangement.
• The strongest arguments that a force majeure event has occurred and made the terms of a contract impossible often involve government actions taken to control COVID-19 as well as unanticipated disruptions of the supply chain. 
• Force majeure is a temporary defense and only applies for the time that the event restrains a party’s performance under a contract. 
• To learn even more about the relationship between force majeure clauses and the coronavirus pandemic, considering reading the American Bar Association’s recent article “Is the Coronavirus a Force Majeure that Excuses Performance of a Contract?”

Speak with a Knowledgeable Corporate Law Attorney

How “force majeure” applies to the COVID-19 pandemic remains largely unsettled. Fortunately, an experienced corporate law attorney can help you navigate this important issue and many others. Contact Resnick Law PC today to schedule a free case evaluation.