Executive Order Will Require Private Employers to Mandate COVID-19 Vaccines or Require Weekly Testing

Published Thursday, September 16, 2021 3:00 pm

On September 9th, President Biden announced an action plan that will require all private sector employers with 100 or more employees to either mandate COVID-19 vaccines for all employees or require weekly COVID-19 testing.  Currently, there are still a lot of unknowns with the executive order.

Here is what we do know:

  • Compliance with this mandate will be enforced by the U.S. Occupational Safety and Health Administration (OSHA) and could result in fines of up to $14,000 per day.
  • When the Federal OSHA rule is released, within 30 days, Oregon OSHA will release its own rule that mirrors with the federal rule. Federal OSHA will likely release the rule by the end of this month.
  • Employers will be required to pay their non-exempt employees for the time spent receiving COVID-19 testing during the workday, and employers may also be required to pay non-exempt employees if they receive their testing outside of their normal work hours.
  • Employers will also be required to provide paid time off to employees for the time it takes to get vaccinated and to recover from side effects.
  • Employers will still need to accommodate for disability or sincerely held religious beliefs.

Here is what is unknown:

  • The deadline for employer compliance.
  • Who will have to pay for COVID-19 testing – employers, the government, or insurance companies.

Certain Federal Contractors and Subcontractors Will Be Required to Mandate COVID-19 Vaccines

President Biden also signed a similar executive order (EO) that applies to federal contractors and subcontractors. The EO will require all eligible contractors and subcontractors to mandate COVID-19 vaccines and it does not provide the option for weekly testing, except for religious and medical exemptions. There are a lot of unknowns with this EO and we will have more information by September 24th, which is when the task force is going to publish compliance requirements and further explanations.

The EO will apply to contracts or contract-like instruments with executive agencies, departments, or instrumentalities valued above the simplified acquisition threshold (currently $250,000) or more for the procurement of services, construction, or a leasehold interest in real property; services covered by the Service Contract Act; concessions; and services offered to federal employees, their dependents, and the general public in connection with federal property or lands. The EO also applies to subcontractors or executive-agency contracts for services, construction, or a leasehold interest in real property. However, subcontracts solely for the provision of “products” (interpreted to mean supplies or goods) are exempt, as are services subcontracts equal to or below $250,000.

These areas are rapidly changing and Cascade will keep you alerted on any significant developments.

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