On May 1, 2020, Puerto Rico Governor Wanda Vázquez issued Executive Order No. 2020-038, extending the previously mandated lockdown and citizen curfew, to be effective from May 4, 2020 until May 25, 2020; expanding the business sectors that may operate, and establishing additional guidelines for businesses and workplace protection to address the COVID-19 pandemic .

A summary of Executive Order No. 2020-038 (“EO 2020-038”), as it relates to commercial and business operations, follows.

Citizens Curfew Extension

The citizens stay-at-home curfew (24/7) is extended until 5/25/2020. Citizens not otherwise exempt from EO 2020-038, may only leave their residence between 5:00 a.m. and 7:00 p.m., exclusively under the following circumstances:

• attend medical appointments, hospital visits, laboratories, medical service centers;
• buy food, pharmaceutical products and essential goods;
• visit exempt businesses to do urgent or necessary errands;
• receive exempt services specified in this Order; and
• provide exempt services specified in this order.

Highway tolls will continue to be collected, but and no toll fines will be imposed during lockdown.

Government personnel will remain operating providing essential services through remote work access or otherwise in accordance to the corresponding government agency work plan.

 

Transition Rules

The following exemptions to the citizens curfew have been issued as a transition rule:

• Payroll: On May 4 and 13, between 5:00 a.m. and 2:00 p.m., up to 5 employees per employer will be allowed to visit the workplace to process payroll for the period ending May 2020.
• Remote Working Materials: On Tuesday, May 5, between 5:00 a.m. and 2:00 p.m., workers may visit their workplace in an orderly manner to pick-up materials and equipment needed for remote working.

 

Safeguards for Citizens Visiting Exempt Businesses

Any person visiting an exempt business establishment under the Order must:

• cover their mouth and nose with a mask;
• maintain 6 feet distance from other people; and
• only 1 person per household may visit establishments, unless assistance is required.

 

Private commercial establishments must:

• ensure that each employee, before beginning their work and periodically, washes their hands with soap and water or use hand sanitizer. Additionally, employees must disinfect their workstations upon arrival and after completing their shifts
• ensure that employees and people who visit their establishments wear protective masks
• provide mechanisms for disinfecting hands
• ensure that people maintain 6 feet of separation
• for supermarkets and pharmacies, offer preferential period of time for senior citizens to visit.
• Businesses should make every possible effort to give preference to people who work in hospitals, laboratories and in law enforcement.

 

Citizens Exempted from Curfew

Pursuant to OE-2020-038, the following citizens are exempted from lockdown restrictions:

• Citizens providing assistance, care, food, or transportation to seniors, minors, dependents, people with disabilities, or vulnerable population requiring medical or professional attention
• Employees of public or private security agencies or law enforcement (state or federal)
• Health professionals, including mental healthcare personnel, and people who work in hospitals, pharmacies, pharmaceutical companies, bioscience facilities or health centers
• Personnel working in the wholesale of goods and food manufacturing, including those necessary for agricultural activity, from the source up to consumer retail establishments where products are sold to consumers
• Persons working with utilities or critical infrastructure
• Exempt service providers (see Additional Services Exempted below)
• Call centers personnel
• Ports and airports personnel
• Members of the press and the media
• Any citizen who is attending any emergency or health issue

Citizens are required to provide evidence of employment with an exempted service or business.

 

Total Business Lockdown

A twenty-four (24) hour closure of business operations shall remain in effect to all businesses not otherwise exempted, including: cinemas, nightclubs, concert halls, theaters, game rooms, casinos, amusement parks, gyms, bars, or any other place or event that encourages the gathering of a group of citizens in the same place.

 

Business Sectors Exempted from Lockdown

The following businesses are exempt from the lockdown:

1. Food Sector

	Retail sale of food. These include prepared food (exclusively through carry-out or delivery), wholesale, supermarkets, fruit and vegetable kiosks and businesses related to the food distribution chain, including animal feed.
	Supermarkets may remain open from Monday to Saturday from 5:00 a.m. until 8:00 p.m. (delivery services may continue until 10:00 p.m.). However, from 7:00 p.m. to 8:00 p.m., supermarkets will receive exclusively people who work in hospitals, laboratories, and law enforcement
	Grocery stores, supermarkets or businesses that have supermarkets will remain CLOSED to the public on Sundays. However, these establishments may use Sundays to clean, disinfect areas and restock inventories.

 

2. Health Sector

Includes businesses dedicated to the production, sale or rendering of services related to medicines, medical equipment or supplies, medical care services and related supply chain distribution operations, including:

	Pharmaceutical, medical device and biotechnology operations
	Manufacture of medical supplies
	Manufacture and sale of cleaning products, disinfectants and personal protective equipment necessary to deal with the COVID-19 crisis
	Hospitals, emergency rooms, clinical laboratories
	Medical services clinics and medical centers
	Medicinal cannabis facilities
	Blood banks
	Pharmacies (there are no longer restrictions on products that could be sold on Sundays)
	Health insurance companies
	Elderly-Care centers
	Veterinary clinics (by appointment only)
	Primary and specialist physicians. Although it is encouraged that physicians continue to use the telemedicine method, face-to-face visits will be allowed by appointment only. Ambulatory services and elective surgeries shall be permitted, as long as they are not for aesthetic purposes.
	Dental offices (to attend emergencies and by appointment only)
	Optometrist offices (by appointment only)

 

3. Gas stations and their supply chain (there are no restrictions on products that could be sold on Sundays)

	Fuel processing, sale and distribution operations.
	Refined fuel, gasoline, diesel, jetfuel, AV-Gas, propane gas, kerosene, etc.
	Vehicle inspection centers (by appointment only).

 

4. Financial Institutions

	Banks, credit unions and other financial institutions for deposits, withdrawals and payments.
	Pawn shops (limited to receipt of goods as a pawn and payment of debts).
	Mortgage banks and other lending entities (only for loan closings, by appointment only)

 

5. Services to Vulnerable Population

Organizations that provide basic needs for economically disadvantage populations, such as homeless shelters, food banks, victim shelters, shelters, and temporary housing.

 

6. Auto Repair and Parts

Vehicle repair businesses, including technicians, tire retailers, parts distributors, auto service centers and auto body repairers may operate to attend emergencies Monday to Friday, between 9:00 am and 5:00 pm exclusively by appointment and attending one person at a time without opening the facility to the general public.

 

7. Hardware Stores

Hardware stores may operate Monday to Friday between 9:00 am to 5:00 pm, only by appointment and by coordinating the sale and delivery of merchandise, without opening the facility to the general public. The business shall also attend to one person at a time.

 

8. Textile Industry

Businesses that manufacture uniforms, clothing or components for the Department of Defense may operate as long as they comply with OSHA protocols for COVID. Any textile business that manufactures personal protective equipment may operate as long as they comply with OSHA protocols.

 

9. Laundries and laundromats

May operate Monday to Friday between 9:00 am to 5:00 pm, as long as they coordinate to attend clients in an orderly manner without opening the facility to the general public.

 

10. Ornamental agriculture

May operate Monday to Friday between 9:00 am to 5:00 pm as long as they coordinate to attend clients in an orderly manner without opening the facility to the general public.

 

11. National Security

	Manufacturing, sale and services related to Aerospace Industry.
	Manufacturing, sale and services related to any federal agency, including the US Department of Defense.

 

Additional Services Exempted

The following services are allowed as exceptions to address emergency situations without opening commercial establishments, ordered through telephone or email, for purposes of dealing with health, hygiene or security needs and in compliance with proper controls and protection against COVID-19:

(a)	Plumbers, electricians, exterminators, repair or replacement of household appliances, elevators, access controls, pools, and landscape. These service providers must wear facemask and gloves.
(b)	Roadside assistance and locksmith services.
(c)	Package delivery and shipping companies.
(d)	Funeral home operations are limited to the embalming, cremation and burial of the corpse.
(e)	Critical telecommunications infrastructure work will be permitted only for installations, repairs, maintenance and rehabilitation of plants, including: o   Infrastructure related to PREPA, PRASA, telecommunications, roads, waste management, ports, and airports. o   Repair, delivery, replacement of equipment, land, cellular, internet, cable TV or antennas by appointment in strategic points. Only to existing customers. o   Sale, installation, repair and maintenance of energy generation systems based on renewable or alternative energy systems. o   Repair and maintenance of streets, roads and highways.
(f)	Waste management (public or private), recycling services, and cleaning and maintenance services.
(g)	Services related to any federal agency.
(h)	Export of non-essential goods as long as it is part of existing inventory.
(i)	Moving services.
(j)	Services to ports and airports.
(k)	Electronic transaction processing services.
(l)	Online sales, for which it will be allowed to operate warehouses but only to dispatch orders by curbside pickup or delivery.
(m)	Supply and distribution for exempted businesses, as long as precautionary measures are taken to mitigate contagion.
(n)	Logistics and transportation: customs brokers, consolidation services for sea or land cargo, storage and distribution services for third parties and the distribution of detergents, disinfectants and hygiene and cleaning products.
(o)	Armory services for the security sector.
(p)	Air conditioner repair and maintenance services.
(q)	Transportation services limited to taxi and public chauffeurs who wish to deliver merchandise.
(r)	Data and call centers.
(s)	Notary services for all kinds of transactions required in the ordinary course of business.
(t)	Legal, accounting and other similar professional services necessary for exempted sectors and activities, that cannot be performed remotely. By appointment only and in compliance with social distancing protocols.

 

Construction and Manufacture Sectors Authorization

Starting May 11, the construction and manufacture sectors are authorized for all exempt business, as long as strict safety protocols are implemented to mitigate contact and protect the health of all workers against COVID- 19, in compliance with CDC guidelines, the Federal Department of Labor and OSHA.  It will be required that construction and manufacture workers are provided with a training on the new safety protocols to prevent contagion in work areas. In addition, construction is authorized in nonexempt businesses and locations, as long as it is to prevent contact of COVID-19 by the time they begin operations. The supply of materials for the construction sector is also authorized, including the distribution of cement and related products.

 

Contagion Risk Management Protocols in the Workplace

Each employer in the exempt sectors must prepare a Contagion Risk Management Protocol based on OSHA and CDC guidelines. The Protocol shall be submitted to the Department of Labor and Human Resources prior to begin operations.

Employers must limit the number of employees in common areas during work hours.  This includes managerial, administrative and support personnel.  No employer may reinitiate work without providing safety gear to their employees.  Safety protocols based on those issued by OSHA must be in place.

Employers may not fire, discipline or discriminate against an employee for availing themselves of the rights afforded by labor laws, such as using licenses, filing complaints or testifying against the employer.

 

Guidelines and Process to Exempt Additional Activities from Lockdown

EO 2020-038 empowers the heads of agencies of the Government of Puerto Rico to:

	Issue additional guidelines to further regulate the relevant provisions under EO 2020-038, with the approval of the Governor.
	Identify any additional services or activities not expressly covered under EO 2020-038 as an exception, that may be deemed essential services or that address an emergency, for approval by the Governor’s Chief of Staff, who will have discretion to authorize such activity or service under EO 2020-038

 

 Rules for Shareholder Meetings of Corporations

Corporations may notify a change of time or location of shareholder meetings via e-mail, press release, radio, newspaper, and/or phone. In the case of public corporations, by filing a notification with the SEC and issuing a press release, including posting a notice in their website.

 

Penalties for Non-compliance:

Non-compliance with the provisions of EO 2020-038 by any person and/or company will be subject to the following penalties: (a) imprisonment that will not exceed six (6) months, or (b) a fine that will not exceed five thousand ($5,000) dollars, or (c) both penalties at the discretion of the court. In addition, the Department of Consumer Affairs (“DACO”, by its Spanish acronym) has issued orders to freeze prices concerning several products of basic need. Failure to comply with such order shall be subject to additional sanctions and fines upon those entities and/or persons who violate those businesses selling those products.

For any questions or inquiries regarding this topic do not hesitate to contact us at info@oneillborges.com or your prime contact attorney at O’Neill & Borges LLC. Please refer to www.oneillborges.com.