More Businesses Are Allowed to Open in PA

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
May 28, 2020

Governor Tom Wolf issued an order to elaborate on the reopening process for green phase counties and guidance on outdoor dining in yellow counties, dining in green counties, and professional sports in yellow counties.

Green Phase Updated Order
The governor elaborated on green phase guidelines announced on May 22 by issuing an updated order for counties in the green phase of reopening. The orders from Governor Tom Wolf and Secretary of Health Dr. Rachel Levine include these provisions:

Suspends all previous stay-at-home orders and replaces them with the new green phase order for these counties, effective at 12:01 a.m., Friday, May 29: Bradford, Cameron, Centre, Clarion, Clearfield, Crawford, Elk, Forest, Jefferson, Lawrence, McKean, Montour, Potter, Snyder, Sullivan, Tioga, Venango, and Warren.

The order includes provisions for businesses that were permitted to conduct in-person operations in the yellow phase, those permitted to operate with some restrictions on in-person operations and those that were not permitted any in-person operations under the yellow phase. The order also includes guidance on occupancy limits and health and safety orders that business must adhere to under the green phase.

Specifics are included on those areas that have raised questions from business owners and residents, including:
  • Personal care services, including hair salons and barber shops must operate by appointment only; appointments or reservations are also strongly encouraged for gyms or spas.
  • Any gathering for a planned or spontaneous event of greater than 250 individuals is prohibited. This includes, but is not limited to, a concert, festival, fair, conference, sporting event, movie showing, or theater performance.
  • Churches, synagogues, temples, mosques and other places of congregate worship are specifically excluded from the limitations established by the order. These institutions are strongly encouraged to enforce social distancing and other mitigation measures such as masking at their gatherings.
  • Visitation to prisons and hospitals may resume subject to the discretion of the facility. Visitors who interact with residents and patients must be diligent regarding hygiene. Given the critical importance of limiting COVID-19 exposure in nursing homes, nursing home visitation restrictions will initially remain in place.

The Wolf Administration worked with the Pennsylvania Restaurant and Lodging Association to develop guidance on dining in both the yellow and green phases.

Yellow Phase Outdoor Dining
  • Beginning on June 5, restaurants and retail food service businesses located in counties designated as being in the yellow phase are permitted to add dine-in service in outdoor seating areas so long as they strictly adhere to the requirements of the guidance, including maximum occupancy limits:
  • Indoor areas, including bar areas, of restaurants and retail food service businesses must be closed to customers except for through-traffic. Non-bar seating in outdoor areas (i.e., tables or counter seats that do not line up to a bar or food service area) may be used for customer seating.
  • Customers being served must be seated at a table.

The following are not permitted:
Self-service food or drink options, such as buffets, salad bars, condiments, and drink stations.
  • Condiments on tables; these must be dispensed by employees upon the request of a customer.
  • Reusable menus.
  • Refilling food and beverage containers or allowing implements brought in by customers.

Green Phase Dining
Retail food service businesses, including restaurants, and bars located in counties designated as being in the green phase are permitted to provide take-out and delivery sales, as well as dine-in service in both indoor and outdoor seating areas, so long as they strictly adhere to the requirements of the guidance, including maximum occupancy limits:
  • Bar seating may be utilized if customers are seated and comply with physical distancing guideline of at least 6 feet or physical barriers between customers. Standing in a bar area will not be permitted.
  • A maximum of four customers that have a common relationship may sit together at the bar, while adhering to the physical distancing guidelines or barriers between other customers.
  • No business is required to conduct in-person operations and should not do so if unable to follow applicable guidance.

Dining guidance provides businesses and employees in the restaurant and retail food service industry with specific details on operations, including following the Guidance for Businesses Permitted to Operate During the COVID-19 Disaster Emergency to Ensure the Safety and Health of Employees and the Public, available here, and provisions specific to mask-wearing, table-spacing, occupancy limits, sanitization, and implementation of a COVID-19 prevention plan, among other provisions to ensure worker and customer safety.

The dining guidance also notes that restaurants and retail food service businesses located in counties designated as being in the red phase are permitted to provide take-out and delivery sales only and may not allow the service or consumption of food or beverages on the premises.

Professional Sports Guidance
The Wolf Administration has worked with Pennsylvania’s professional sports teams to develop guidance that allows for competition to resume.

Professional sports, defined as any sporting event at which the participants are paid by a league or team, or at which individuals or teams receive prizes or purse, are allowed to practice or play in the yellow and green phases of reopening without on-site or venue spectators if the team (or league on behalf of the team) has developed a COVID-19 safety plan.

Such a plan must be approved by the Pennsylvania Department of Health and include, among other requirements, testing or screening and monitoring of all on-venue players and personnel. Also, no fans or spectators may be permitted on interior or exterior venue property. Professional sports organizations are encouraged to contact the Wolf Administration to share their reopening plans and get them approved by the Department of Health.

FAQs on this guidance is available to help you reopen as safely as possible. 

Some Restrictions Are Lifted in Philadelphia
The City of Philadelphia is allowing restaurants and mobile food vendors to offer walk-up ordering, effective immediately.

Philadelphia Mayor Jim Kenney amended business closure and stay-at-home orders this week, which will permit up to 10 people to line up to order at restaurants and food establishments. Dine-in service is still prohibited, and face coverings and social distancing guidelines are required.

The city and state have slowly started to relax restrictions on restaurants and food vendors, recently green-lighting the sale of to-go cocktails. 

The City of Philadelphia will release guidance and planning for businesses later this week. 

We will continue to update yo u on new developm ents. Please visit our COVID-19 Resource Page for more alerts.

Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@MCC-CPAs.com . I can be reached at Marty.McCarthy@MCC-CPAs.com . As always, we are happy to help. Have a good Memorial Day weekend.

Stay safe,

Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company

Sources: The Office of Governor Thomas Wolf and the Philadelphia Business Journal. May 27, 2020.

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).