Employer-Mandated Vaccination?

As employees are returning to work and vaccines are becoming more available (all Oregonians over 16 will be eligible by July 1st according to Governor Brown), employers may start requiring vaccination.

Can an Employer Mandate Vaccination?
Generally, yes. Some exceptions exist for specific kinds of workers, contractual limitations, and protected categories.

Exempt Employees
Pre-COVID state law requires employers of healthcare workers to provide vaccination, at no cost, to at-risk employees. This same law states that the employer may not require vaccination as a condition of employment. Subject workers include not just healthcare workers but also firefighters and police.

Contractual Limitations
Unionized employees may have a collective bargaining agreement that prohibits mandatory workplace vaccination. Although less likely, individual employment agreements may also have such a prohibition.

Religious Convictions and Disability
Civil rights and disability laws require employers to consider requests for exemptions from employees with either a sincerely held religious conviction or a disability. Employers will need to determine whether a reasonable accommodation can be made. Accommodations creating an “undue hardship” on the business or a “direct threat” to the safety of others need not be given.

Bonus for Vaccination? No so Fast.
While an employer may want to provide a financial incentive to convince a worker to get vaccinated, it could trigger a discrimination claim. For instance, an employee who refuses vaccination due to a bona fide religious conviction could argue that the employee is being discriminated against and receiving unequal pay as a result of his/her religious convictions, or is being retaliated against for asserting his/her rights.

Money for Nothin' . . . Except More Forms

SBA Releases New Guidance on How to Keep PPP Money

The SBA released guidance on how recipients of coveted Paycheck Protection Program (PPP) funds can keep the money and not pay it back. This should help both businesses that already received funds as well as those on the sidelines that delayed applying. Funds are still available, although not likely for long, and certain banks and credit unions are still taking applications.

The PPP is part of the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, which President Trump signed into law on March 27, 2020. The PPP was intended to provide $600 billion to small businesses to pay employee wages and other critical business expenses. Funds are originally provided as a loan, which is forgiven if at least 75% of the funds are used for payroll and any balance for utilities, mortgage interest or rent.

Under the new guidelines, an employer must file SBA Form 3508 (Paycheck Protection Program Loan Forgiveness Application) with its lender to obtain forgiveness.

Employers must spend PPP funds within eight weeks, but the new guidelines allow some flexibility in determining when money is used for payroll. Payroll costs are considered paid when paychecks are distributed, an ACH credit transaction is originated, or the day the employee earned the pay. The borrower can use an "Alternative Payroll Covered Period" to calculate payroll costs using the eight-week period beginning with the first pay period following disbursement of PPP funds.

The SBA guidance allows for forgiveness of amounts paid to owners. Similar to employee wages, the amount paid cannot exceed $15,385 (the eight-week equivalent of $100,000 per year) per individual.

The PPP originally required an employer to maintain its workforce to allow loan forgiveness. The guidance now provides clarified exceptions as well as a new Full Time Equivalency (FTE) safe harbor provision. Exceptions include reductions for (1) positions for which the borrower made a good-faith written offer to rehire an employee that the employee rejected, (2) terminations for cause, (3) voluntary resignations, or (4) agreed upon reductions in hours. The FTE safe harbor provides that an employer can reduce its workforce as long as it is restored to the same, prior level.

Further tweaks may be coming, including possible changes to the eight-week repayment period and the 75% payroll requirement. Congress appears to be listening to business owners, who are facing significant non-payroll costs or trying to reopen but unable to get their employees to return to work.

How Do You Limit Your Exposure, Not Just to COVID-19?

(Answer: Put your distancing in writing.)

1. Why draft a workplace distancing policy?

Oregon Executive Order No. 20-12 requires it. All businesses not otherwise closed by the order are required to establish, implement and enforce social distancing policies. The penalty for not adhering to the order is a class C misdemeanor. However, criminal enforcement does not seem to be a high priority for the state. Oregon has established a “hotline” for employees to report nonconforming employers. OSHA fields these calls and has threatened to inspect and shut down businesses that are not complying with the governor’s order.


2. What is so important about this policy statement?
A well-drafted policy will not only comply with the governor’s order and keep your employees safe, it should help limit your liability for possible claims by employees and others. Soon we may see a wave of claims brought by employees, arguing that they contracted COVID-19 due to employer negligence. Negligence involves failing to exercise reasonable care. In determining reasonableness, courts look to community standards.

Arguably, standards for how an employer should safeguard against COVID-19 have been published by the Oregon Health Authority (OHA), Occupational Safety and Health Administration (OSHA), and Centers for Disease Control (CDC). A well-drafted policy should incorporate these standards. In addition, the policy should address the state and federal requirements governing the use of Personal Protection Equipment (PPE).
 
An employee may also argue that a workplace is unsafe due to an employer’s failure to implement appropriate COVID-19 policies. If deemed unsafe, an employee may be entitled to stay home and the workplace may be shut down by OSHA.

3. Should the policy address the conduct of and with non-employees?
Yes. Executive Order No. 20-12 requires the policy to address how the business will maintain social distancing protocols for visitors. Customers, contractors and any other visitors are not just a possible source of transmitting COVID-19 but also a possible source of legal complaints. They could claim that they contracted COVID-19 due to a nonexistent or poorly drafted workplace distancing policy. In addition to drafting protocols for such visitors, you should consider further protecting your business with an indemnification and hold harmless agreement.

4. Does this apply if my employees telecommute or we shut down our business?
Every business should develop a workplace distancing policy. Whether the business has a single employee at the office to pick up mail and perform administrative tasks or the entire workforce is currently absent but will eventually return. COVID-19 will likely forever change the way we interact and conduct business with each other. New standards will emerge. Forward thinking employers should have policies to address and protect themselves in this brave new world.
 
Please contact us if you need assistance in drafting a workplace distancing policy or have any related questions or concerns.

Whistleblower-Gate

A Perspective on the Man in the Middle: Michael Atkinson

Michael Atkinson, Inspector General of the Intelligence Community, determined that the complaint from an unidentified whistleblower is credible and of urgent national interest. Mr. Atkinson boldly disagreed with the Director of Intelligence, Justice Department and White House Counsel. He notified the House Intelligence Committee of the existence of the complaint.

The actions of Mr. Atkinson launched the current firestorm engulfing President Trump, including formal impeachment proceedings.

The complaint stated that President Trump, in a telephone call with the newly elected Ukrainian President Volodymyr Zelensky, sought to pressure the Ukrainian leader to take actions to help President Trump’s 2020 reelection bid.

Was Mr. Atkinson politically motivated and/or part of some conspiracy to take down Trump? Did he err in reaching his conclusion?

The quick answer to all of these questions is…no.

Michael and I were housemates at Cornell Law School, Moot Court partners, and buddies. We routinely timed our dinners (separately defrosted) so that we could watch the latest rerun of Miami Vice.

Michael’s decision regarding the complaint was not politically motivated. He was appointed to his position by President Trump. Michael has always been politically conservative, a staunch Republican, which made for occasional banter between us.

He was proud to be an American. As he was a fan of Bruce Springsteen, I can still hear the song “Born in the USA” blasting out of the speakers in his bedroom.

Michael did not seek the limelight…perhaps, unlike his housemate. I was surprised when he agreed to be my partner for the Cornell Moot Court Competition. Moot Court is essentially a debate contest with other classmates in the format of an appeals court hearing. Michael and I advanced to the semi-finals.

Michael works hard and takes his legal career seriously. After our time together at Cornell, he worked his way up to partner at a large DC law firm. He took a significant pay drop when he decided to pursue his passion and work for the Department of Justice. He worked as a trial attorney in the fraud section of the DOJ, and then became the DC Assistant U.S. Attorney General, in the fraud and public corruption section.

If Michael determined that President Trump’s telephone call and the surrounding events, as alleged, constitute a “serious or flagrant problem, abuse or violation of law or Executive order” then they do.

As I told Michael after the story hit the news, “you’re welcome--for teaching you everything you know.” Michael’s humble response was, “it may be premature, even for you, to try to take credit.”