More Companies Weigh Penalizing Employees Without Covid-19 Vaccinations

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Companies are increasingly considering punitive measures, including healthcare-benefit surcharges, to get employees vaccinated against Covid-19

Covid-19 vaccine, said Marc Bernstein, chair of law firm Paul Hastings LLP’s New York employment law department.

“Companies are taking a broad range of approaches, from, on the one hand, requiring vaccinations with exceptions for medical or religious accommodations, to creating financial incentives, imposing financial penalties or simply encouraging employees to get vaccinated,” Mr. Bernstein said.The Biden administration announced that Americans who have been fully vaccinated with a two-dose regimen against Covid-19 should receive a booster, citing the threat from the highly contagious Delta variant.

As with mandates, the biggest risk of benefits surcharges or similar penalties for those not vaccinated against Covid-19 has to do with employee relations rather than legal compliance, according to Mr. Symons. “Do you risk people not wanting to work for your company anymore, because of the impact of the surcharge on their finances?” he asked.

Apart from how employees will react to such a surcharge, companies that are considering imposing one need to take into account guidance from the U.S. Equal Employment Opportunity Commission. They must also consider the ACA, the Americans with Disabilities Act and the Health Insurance Portability and Accountability Act, or HIPAA.

“I’m certainly getting a lot of questions, like, ‘Can I not cover Covid treatment for those that are not getting vaccinated? Can I not cover their Covid testing? Can I kick them off the plan altogether?’” Mr. Symons said. “Generally the answer to all three of those questions is: It’s dangerous to do that under HIPAA nondiscrimination protections,” he said, adding, “Companies are exploring a lot of the options here but there are certainly some legal risks they need to be mindful of.

 

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It's mostly a US problem, I see much less of it in Canada and the UK. I've visited all 3 recently and have family in each.

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thanks

Not punitive, not even fully charging for the excess costs to healthcare

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