Legislators in multiple jurisdictions are moving forward with laws that provide businesses with varying degrees of immunity from civil liability for COVID-19 claims. North Carolina, Oklahoma, Utah and Wyoming recently passed laws that grant businesses immunity from civil liability for claims relating to COVID-19. At least three other states, Louisiana, Kansas and Arizona, are weighing similar proposals. While numerous jurisdictions have already provided some form of immunity to first responders such as health care providers, these bills extend immunity to the business community.
The scope of immunity varies by jurisdiction. For example, North Carolina provides immunity to a broad array of "essential businesses," such as grocery stores and restaurants, from liability for any harm caused by COVID-19. In contrast, Oklahoma, Utah and Wyoming provide immunity to everyone, so long as safety rules are followed and no laws are broken.
North Carolina
North Carolina's civil liability immunity provision was included in Senate Bill 704, a COVID-19 relief package approved by Governor Ray Cooper (D) on May 4, 2020. The law provides immunity to any entity deemed "essential" in the emergency orders, retroactive to March 27, 2020, which is the date that Cooper first ordered businesses to close or scale back to prevent the spread of coronavirus.
North Carolina attorney Jeffrey P. MacHarg noted in a blog post that "the immunity protection covers a wide swath of businesses and organizations: "Grocery and hardware stores, pharmacies, banks, takeout eateries and even attorneys were deemed essential in the March 27 order." A second May 20, 2020, order that reopened many businesses, such as dine-in restaurants, will expand the immunity protection to cover them.
North Carolina's immunity provision is not absolute. It does not bar regulatory actions, criminal charges or workers' compensation claims. Also, there is no immunity for gross negligence, recklessness or intentional infliction of harm. The immunity will continue until the emergency orders expire or are rescinded.
North Carolina attorney Carma L. Henson noted that 375 residents of North Carolina nursing homes had died of COVID-19. Blatant disregard for standards of care have been reported, she said. "Suits have been filed on behalf of grieving families in some of these cases, but plaintiffs' attorneys are already having to make heart-wrenching decisions to turn down cases due to the language of the law," Henson said in a May 26, 2020, blog post.
Oklahoma
Oklahoma's Senate Bill 1946 offers broader protections than North Carolina's new law. The legislation, signed into law by Governor Kevin Stitt (R) on May 21, 2020, provides immunity to everyone from liability for any claim by a person who was exposed to COVID-19 so long as no laws were violated and the person of business accused followed official safety guidance.
Stitt also signed into law Senate Bill 1947 on May 15, 2020, which provides immunity from product liability claims against people who manufacture or supply personal protective equipment or medications used to treat COVID-19, even if dispensed for off-label use.
Utah
Utah's SB 3007 provides immunity to all persons and premises from liability for injury resulting from exposure to COVID-19, unless there was willful misconduct or reckless or intentional infliction of harm. The bill was signed into law by Governor Gary Herbert (R) on May 4, 2020.
Wyoming
Wyoming's Senate File 1002 provides immunity from COVID-19 claims to any person or business acting in good faith and following safety instructions for the duration of the public health emergency. The bill was signed into law by Governor Mark Gordon (R) on May 20. 2020. The bill will expire on June 30, 2021.
Originally published 18 June, 2020
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