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Insurance agencies exempt from workforce reduction executive order

New York Gov. Andrew M. Cuomo signed an Executive Order No. 202.6 on March 18, 2020, requiring all nonessential businesses to reduce their in-office workforce by 50%. The governor subsequently modified that order on March 19, increasing the reduction of in-office workforce to 75% for nonessential businesses.

In order to clarify which businesses are considered essential and nonessential Empire State Development released guidance on March 19, 2020.

ESD identified 12 categories of businesses, many with their own subcategories, as essential businesses. Among the identified businesses were financial institutions. Insurance is specifically included in this category alongside banks, payroll and accounting.

As insurance agencies have been categorized as an essential business, they are exempt from the governor’s executive order, and they are not required to reduce their in-office workforce by 75%.

Further in the guidance, ESD makes clear that if a business operates or provides both essential and nonessential services, only those lines and/or business operations that are necessary to support the essential services, supplies, or support are exempt from the restrictions.

ESD guidance and the list of all the exempt professions can be found here.

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