ARTICLE: How will the new Executive Order impact your business?

On September 10th, 2021, the Biden Administration announced that he will issue an Executive Order mandating the private sector to get their employees vaccinated against COVID-19 prompting 80 million workers that will be affected.

The new Emergency Temporary Standard (ETS), which will be developed by the Labor Department’s Occupational Safety and Health Administration (OSHA), will require employers with 100 or more workers to mandate vaccinations or submit a weekly negative test before coming to work once per week.  The rule will require employers to provide paid time off for getting vaccinated and recover from any side effects by the vaccine.   The new statute will include a provision to fine employers $14,000 per employee for non-compliance but it will also include exemptions for individuals with disabilities and religious grounds. The strict measures are an effort to control the virus as cases, hospitalizations and deaths are on the rise.   

How does this mandate affect business?

If there are 99 employees or less, it is up to management to decide whether or not to follow the mandate.  If there are 100 employees or more, then the mandate is in full effect.  Moreover, experts warn that work comp claims and recordable incidents with OSHA logs can potentially skyrocket because employees can report injuries or illnesses from the vaccine. 

How does this affect your Work Comp policy?

Some carriers have included an exclusion at renewal that will deny Work Comp claims that pertain to COVID related injuries or illnesses.  With this new mandate, however, things can change where COVID-19 related illnesses and injuries will be a covered loss.  The question becomes if it is limited only to companies that have 100 or more employees? Or will it include those companies that have 99 or less workers?

Read through your policy or keep in contact with your Risk Management Advisor for any changes to your policy.  If you don’t have a representative that can provide help, you can contact us.

For a copy of the “Path Out of the Pandemic: President Biden’s COVID-19 Action Plan” read more.