On August 28th, California's Governor Newsom announced a new, color-coded process for reopening California businesses. The State's new program is designed to be more deliberate and gradual than the rule it replaces. The new system is designed to ensure that businesses don't reopen too soon, like they did earlier this year when restrictions were eased. In simple terms, the rules tie loosening of restrictions to more favorable testing results. The higher the case statistics, the tighter the restrictions.

Counties will move through the new, four-tier color coded system (Purple, Red, Orange and then Yellow) based on their number of new COVID-19 cases and the percentage of positive tests. As test results steadily improve and hold for a predetermined period (3 weeks in most cases), counties will be allowed to move up a tier and begin reopening additional parts of the economy.  

  • Purple - Tier 1 ("Widespread" transmission):  Most nonessential businesses must be closed. Counties in this tier have more than seven new COVID cases per 100,000 people per day and a coronavirus test positivity rate of 8% and above.

  • Red - Tier 2 ("Substantial" transmission): Some non-essential indoor businesses remain closed. Counties in this tier have between four to seven COVID cases per 100,000 people per day and a coronavirus test positivity rate of between 5%-8%.

  • Orange -Tier 3 ("Moderate" transmission): Some businesses can open with modifications. Counties in this tier have 1-3.9 new COVID cases per 100,000 people per day and a coronavirus positivity rate of 2-4.9%.

  • Yellow -Tier 4 ("Minimal" transmission): Most businesses can reopen, with modifications. Counties in this tier have less than one new COVID case per 100,000 people per day and a coronavirus positivity rate of less than 2%.

The state's COVID-19 website (Click Here) provides details about which businesses can open at each Tier and more information about how your particular county is doing.

As always, if you have any questions about this issue of Compliance Matters, be sure to reach out to your contact at the Firm or send your question to Info@brgslaw.com.

Sincerely,
Richard S. Rosenberg
Katherine A. Hren
Ballard Rosenberg Golper & Savitt, LLP