Yesterday, Governor Walz announced Executive Order 20-81. This order requires face coverings in indoor spaces and public buildings, including retail stores, and in similar outdoor settings where social distancing is not possible. This mandate goes into effect on Saturday, July 25.

• children under 2 who must never wear masks due to risk of suffocation
• children 2-5 are not required to wear face coverings
• people with medical or health conditions, strenuous work, and more (Retailers are not required to verify health conditions.)

1. Ensure workers and customers are masked.
2. Update COVID-19 preparedness plans to reflect the masking requirement.
3. Treat non-compliant customers as you would any other customer violating a store policy.
4. Post signage indicating that masks are required.

Retail shrink in 2019 reached $61.7 billion, up from $50.6 billion in 2018. Those figures are according to the "National Retail Security Survey" conducted by the National Retail Federation (NRF). Seven in 10 survey respondents reported a shrink rate of more than 1%.

Per the report, 29% of respondents indicated that e-commerce crime was a risk or threat that has become much more of a priority during the past five years, followed by organized retail crime (27.5%) and cyber-related incidents including data breaches (27.5%).

The report also found that over 52% of respondents are allocating technology resources to address risks this year, down from nearly 56% from the year before. Staff resource allocation is also down to 26% in 2020 from nearly 29% in 2019.

According to  the NRF's previous research, retail shrinkage totaled $46.8 billion in 2017, indicating that retail's shrink problem has continued to grow over the past few years.

"Between an increase in incidents and new ways to steal, shrink is at an all-time high," NRF vice president for research development and industry analysis Mark Mathews said in a statement. "Loss prevention experts are facing unprecedented challenges from individual shoplifters to organized gangs to highly skilled cybercriminals. Retailers are responding with both traditional methods and the latest technology, but this is an ongoing challenge that can only be won with the support of lawmakers and law enforcement.'

Read the full article  here.

Recently, an article appeared in the Southwest (Minneapolis) Journal which included a number of MHA members sharing experiences of operating their retail hardware stores during the COVID-19 pandemic. The complete article can be found  here.

While MHA members continue to navigate these unprecedented times surrounding the Coronavirus pandemic, a recent publication from the State of Wisconsin Legislative Council comes to mind as a resource. The Legislative Council is a nonpartisan service agency that provides legal advice and guidance to members of the Wisconsin Legislature so that legislators can make better, more informed decisions.

The Legislative Council published a June 2020 Issue Brief discussing Worker's Compensation and employer liability for employees diagnosed with COVID-19 following their return to work. The Issue Brief explains that the state Worker's Compensation Act provides that employee injuries sustained from an illness or infection are generally covered by Worker's Compensation, but employees must demonstrate that they became ill through the course of their employment. Employees seeking Worker's Compensation coverage for a COVID-19 diagnosis must show their illness was caused by exposure at work. Injuries, including COVID-19, are covered whether or not the employer was negligent.

Wisconsin Worker's Compensation law provides an "exclusive remedy" for employees who are injured in the course of their employment, meaning that employees cannot bring separate legal actions outside of the Worker's Compensation system against their employer for an employment-related injury. However, as the Issue Brief outlines, employees can still bring actions against third parties other than their employer, if the third party is at least partially responsible for their injury. Employees must prove that the third party's negligence led to their injury, which also could include COVID-19 exposure.

Read the Legislative Council Issue Brief here

The widespread COVID-19 pandemic leaves employers and third parties, even those following federal and state government recommended best practices and guidelines, open to lawsuits if employees or customers contract the virus. Various polling data suggests that employer liability is real, with many employees indicating they would sue their employer over contracting COVID-19. This uncertainty and increased exposure to liability and costly lawsuits is of great concern to many employers throughout the state. Wisconsin needs a "safe harbor" for businesses that comply with government recommendations and practice appropriate protocols. Despite hardware stores being listed as "essential businesses" by Wisconsin and federal governments, these measures can help ensure business owners and their employees are comfortable remaining open and protect employers from civil claims filed outside of the Worker's Compensation system. That is why many statewide business organizations are urging Wisconsin lawmakers to take action to help prevent a wave of COVID-19 related lawsuits from trial lawyers that could seriously undermine efforts to restart and rebuild our economy.

The Legislature has adjourned its regular 2019-20 session, but there's speculation lawmakers could return sometime after the November elections in order to complete some unfinished business. It's also possible they could also consider legislation on liability protections for businesses related to COVID-19 lawsuits at that time.

It's also possible that the United States Congress may take action. Most likely, business liability protections will be part of the negotiations which take place leading up to the next federal COVID-19 stimulus package .