Hospitality Minnesota Members:
Yesterday’s mandated closure of on-premise dining in Minnesota restaurant’s went into effect at 5:00 p.m. today, and we’ve spend today getting clarification on the Executive Order from the Governor’s Office, the Minnesota Department of Health (MDH) and the Minnesota Department of Employment and Economic Development (DEED). We’re also working at the state and federal level to seek financial relief for the industry and its employees.
In this Update:
- Clarifications on the Executive Order
- Unemployment Insurance
- Take-out and Delivery Protocols
- Implications for Hotels
- Continuity Issues not Addressed in the Executive Order
- Insurance Coverage
- SBA Disaster Relief Program
- Policy Action in Play
Clarifications on the Executive Order
Unemployment Insurance
Employees who are temporarily laid-off or had their hours significantly reduced are likely eligible for benefits and the Department of Employment and Economic Development encourages all workers affected by COVID-19 to apply for unemployment benefits. In line with our request, the “non-payable week” requirement has been suspended in order to speed relief payments to workers.
For more information:
Typically, only covered employees with sufficient earnings are eligible to receive unemployment benefits. Earnings from self-employment (i.e. employer/operators) are usually not included, and we have no indication that will change. For more information:
According to the Department of Employment and Economic Development, the government has not yet made the decision to suspend unemployment insurance payments by employers (though we are advocating for such action and other immediate tax relief). The Governor’s Order does provide relief from increased surcharge rates due to workers applying for unemployment benefits due to COVID-19.
Take-out and Delivery Protocols
Restaurants are encouraged to offer food and beverage service using delivery, walk-up, window, drive-through and curbside services. Today, the
Minnesota Department of Health
added guidelines for doing so, including the use of social distancing, contactless exchange, online payment processing and tamper-resistant packaging.
Note: these are recommendations to prevent the spread of COVID-19/Coronavirus, not mandates.
Following these guidelines, where practical, can provide your customers with additional assurance that you are practicing the highest levels of food safety and worker hygiene.
Implications for Hotels, Motels, Resorts and Campgrounds
The Executive Order does not explicitly name overnight accommodations but it does significantly impact their services. We have been in contact with the Governor’s Office to clarify how the stipulations outlined should be applied. This is what we have learned so far:
- Bars and restaurants located in hotels and resorts must close for dining in as of 5:00 p.m. on Tuesday, March 17.
- Room service and pre-packaged foods are permissible and properties should follow the guidelines outlined by the Minnesota Department of Health.
- A licensed hotel catering operation is permitted to provide food to another hotel as a food delivery mechanism.
- Fitness Centers, pools, spas, arcades and recreational and leisure areas must also close. For a complete list of the affected public spaces see the Executive Order.
Continuity Issues not Addressed in the Executive Order
Insurance Coverage
Questions about coverage for business interruption or whether the pandemic will be defined as a Force Majeure are questions to direct to your insurance agent. Since everyone’s policies are different, we cannot offer universal answers to these questions. Review your policy and contact your claims agent to discuss.
SBA Disaster Relief Loan Program
Thanks to those who responded to our appeal to complete the SBA forms on the potential impact of the pandemic. The state has met the threshold needed to permit the Governor to request activation of the program for Minnesota. This
SBA press release
provides further explanation of the program, and we will share details on how to apply as we receive the.
Policy Action in Play
While passed by the U.S. House of Representatives, the Families First Coronavirus Response Act is not yet law, and the interplay between the provisions in the bill and other law is not yet known. The current draft of the bill would require employers to pay for paid leave benefits for certain workers impacted by COVID-19. Employers could then obtain a tax credit. This is obviously a problem for businesses with cashflow challenges. Small businesses under 50 employees may be able to seek an exemption from the U.S. Labor Department. We are working with our national partners to improve the administration of any final bill, including additional financial support to impacted businesses. This is a rapidly evolving issue, so stay tuned.
Things are moving fast and we’re here to help make sense of it all. Let us know how we can help.
Sincerely,
Liz Rammer
President and CEO
