Covid-19 Leave Suits Trickle In With Spike Expected This Fall

Here are the day’s top coronavirus stories from the team at Bloomberg Law:

• LEAVE SUITS TRICKLE IN: A scrap metal worker in Maryland quarantined himself for three weeks after being hospitalized with Covid-19. A legal assistant asked to telework when her son’s Florida school closed in the pandemic. They say they were illegally fired, joining six dozen other workers who have sued their employers over alleged violations of the Families First Coronavirus Response Act. Business groups and management attorneys warned of litigation in the spring, including class or collective actions. Such an onslaught hasn’t come to fruition, but attorneys predict more lawsuits before the law expires on Dec. 31.
• BIG LAW LAYOFFS: A pair of large law firms—Baker McKenzie and Davis Wright Tremaine—announced layoffs Tuesday. The moves are likely to deflate some of the cautious optimism in the legal industry amid the continuing uncertainty posed by the pandemic.
• JOB MARKET FORECAST: U.S. companies added fewer jobs than expected in August, suggesting the labor market rebound remains gradual, with employment well below pre-outbreak levels.

Editor’s Top Picks

Virgin Atlantic’s $1.6 Billion Rescue Approved by U.K. Court
Virgin Atlantic Airways Ltd. secured backing from a U.K. court for a 1.2 billion-pound ($1.6 billion) rescue package Wednesday that will keep billionaire Richard Branson’s airline afloat amid the pandemic’s ravaging of the travel industry.

Zebra Technologies Sues Insurer For Coverage of Virus Losses
Zebra Technologies Corp. is taking its insurer to court with the hope of securing coverage for “tens of millions” of dollars in losses stemming from the outbreak.

New York Sports Club Owner Warns of Bankruptcy With Gyms Shut
The owner of the New York Sports Clubs chain said it may need to file for bankruptcy “in the near future” as many gyms across the country remain closed to stem the spread of Covid-19.

United Air to Cut More Than 16,000 Jobs on Weak Travel Demand
United Airlines Holdings Inc. will eliminate 16,370 jobs next month as the carrier shrinks operations in response to the steep decline for air travel demand amid the Covid-19 pandemic.

IRS Called to Amend Commuting Expense Rules During Pandemic
The U.S. Chamber of Commerce is asking the IRS to temporarily allow deductions for transportation and commuting expenses while employees work from home during the Covid-19 pandemic.

Moot Idaho, Oregon Voter Initiative Suits Have Faint Heartbeat
Challenges to Idaho and Oregon laws governing the placement of voter initiatives on the ballot were rendered moot by recent U.S. Supreme Court intervention in the cases, but the parties may still brief the merits of whether the issues may arise again, the Ninth Circuit said in a pair of opinions.

INSIGHT: Delivering Innovative, Client-Centric Legal Services During Pandemic
A law firm’s use of new technology can lower the firm’s legal costs and improve how it serves its clients. Shulman Rogers attorney Anthony Millin walks through his firm’s decision to adopt a new tech platform to significantly change its approach to securing new clients and keeping them.

INSIGHT: Is an EIDL Right for Your Business?
The Small Business Administration’s management of the Economic Injury Disaster Loan (EIDL) Program under the CARES Act has had several issues. Katharine Meyer, a principal at GKG Law, examines the pros and cons of obtaining an EIDL, including the potential burdens of the collateral requirements and maintaining hazard insurance on that collateral.

INSIGHT: NFL Limits Off-Duty Conduct to Tackle Covid—Can Your Business?
Employers may seek to limit the off-duty conduct of their workforce to minimize exposure to Covid-19, and the approach taken by the NFL may seem tempting. Porter Wright attorneys explain that efforts to restrict lawful conduct, especially religious observances, during non-working hours and penalize employees must be carefully assessed to minimize risks of legal challenges and violations of federal and state laws.

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Editor’s Note: The Bloomberg Law news team has been closely covering the legal, regulatory, business, and tax implications of the coronavirus pandemic. This daily email highlights the top stories of the day, across practice areas. To unsubscribe, please adjust your Bloomberg Law newsletter settings. For assistance, contact our help desk at 888-560-2529 or help@bloomberglaw.com.