Dealer Group Challenges Governor’s COVID-19 Cluster Rules
/Federal Lawsuit Says Rules Create Unfair Market
A recent NYS Executive Order that tightened restrictions on businesses in so-called COVID-19 “Red Zones” has been challenged by a NYC dealership in Federal Court in Brooklyn.
On October 6th, Gov. Andrew Cuomo ordered non-essential businesses in these areas to close. He also reimposed restrictions on essential businesses, including dealers, that he initially imposed at the beginning of the pandemic but eased after several months.
The reinstituted restrictions for dealers inside the Red Zone prohibit sales department walk-ins and require customers to schedule appointments for all sales visits.
The lawsuit filed by the dealer says the dealer group will “permanently lose customers and potentially employees to neighboring automobile dealerships.” It also points out that the business has not had a single positive COVID test from its ranks of hundreds of employees in the past six (6) weeks.
The Governor issued the “Red Zone” Executive Order after Mayor Bill de Blasio proposed restrictions for particular ZIP codes. The Governor’s Order applied to a different set of neighborhoods that did not break along ZIP code lines. The Administration drew the “Red Zone” lines around neighborhoods where the COVID-19 positive test rate was over 4x higher than the state average.
Gov. Cuomo eased Red Zone restrictions in Queens
On Wednesday, Gov. Cuomo eased Red Zone restrictions in Queens, but those in Brooklyn and parts of Orange and Rockland Counties remained in place. The Governor also discussed easing the state’s quarantine policy for out-of-state travelers who visited a state with a high infection rate. Gov. Cuomo is considering replacing the requirement for a 14-day quarantine for these travelers with policy that requires additional testing to ensure the virus has not spread.
GNYADA will continue to monitor all changes related to these policies and keep dealers updated on any developments that affect their businesses.
