Come Jan. 4, 2022, businesses with 100 or more employees will be required by the federal government to mandate that their workers be vaccinated against COVID-19 or submit to regular testing and masking requirements.
One of the unintended consequences of the White House vaccine mandate for businesses with at least 100 employees has been the backlash — protests and spiking resignation rates. A recent survey of pallet companies conducted by the Pallet Profile found that pallet suppliers could face significant turnover risk.
The Profile asked, “What percentage of your workforce do you believe would walk off the job if federal vaccine mandates are imposed?” Alarmingly, 28.1% of pallet providers said they would expect to lose more than 40% of their employees. Another 23.08% commented that they would likely see between 25-40% of their workforce quit. Pallet suppliers with between 5% and 14% employee loss amounted to 15.38% of respondents. Companies with less than 4% employee loss amounted to just 17.94% of respondents.
Although President Biden’s vaccine mandate does not apply to companies with less than 100 employees, the Biden administration has already floated the idea of extending the vaccine mandate to smaller employers in the future. At the same time, states, employers and private organizations are suing to stop the new Emergency Temporary Standard (ETS) issued by the Occupational Safety and Health Administration (OSHA). Federal courts temporarily stayed the vaccinate mandate, and it isn’t clear if courts will overturn the vaccine ETS.
What is the likely outcome in the courts? Nobody knows for sure. Jason Ortega, vice president of public affairs for the National Wooden Pallet & Container Association, cautioned, “It is too early to say what the federal courts will rule. There is precedence on both sides of this issue. It could come down to which courts gets it to whether or not there is an injunction.”
The employers have a tough decision to make: do they comply knowing the rule may be overturned later in the courts or do they risk losing a significant number of workers? Some companies have already issued vaccine requirements to ensure employee safety, and a number of those actions have resulted in operational disturbances due to lost workers.
Companies can take steps like surveying workers, holding meetings to discuss strategies, contacting experts, offering vaccination incentives, developing a game plan and creating a system to keep proper records. These steps can help a company prepare without mandating the ETS or terminating some employees.
Pallet suppliers may also need to change some policies to reduce the impact on workers. For example, solo truck drivers that interact with the public or office staff would have to comply with the order. Thus, companies may need to develop more remote ways for customers to confirm delivery to shield drivers from the ETS provisions. Some pallet companies might even choose to broker more loads to reduce head counts. Companies may also move to allow more remote work in some cases to accommodate office workers or sales staff who are not vaccinated.
The ETS does not mandate that companies require vaccination, although companies are allowed to take this path if they prefer without offering a testing/masking option. Even for those with reasonable medical or religious exemptions, they still must comply with the testing and masking requirement. OSHA has not established criteria for exemptions; the agency is leaving this decision up to the employer. When it comes to enforcement, OSHA is expected to use the whistleblower system to identify companies that may not be in compliance versus actively sending out inspectors to random companies. OSHA fines can run thousands of dollars per employee for non-compliance.
Remember, the Centers for Disease Control and Prevention (CDC) no longer recommends mandatory masks or social distancing for people who are vaccinated. This is just guidance, though. If your state or local laws contradict the CDC, then state or local laws take precedence.
Also, employers are allowed to ask their workers about their vaccination status. The Equal Employment Opportunity Commission (EEOC) has explicitly said that employers may ask this question. Their status determines whether they need to wear a mask and get tested, according to the ETS. The OSHA vaccine rule also requires employers to verify vaccination status of employees and keep records of the process.
Limit your inquiry to only the employee’s vaccination status, avoid any follow-up questions, and inform your employees not to provide any additional medical information. You should also maintain your employees’ confidentiality.
Ortega admitted, “The vaccine mandate is a pretty big threat to the pallet industry, and it could lead to some pretty big unforeseen consequences.”
