Companies wait to hear court ruling on shots edict

NEW YORK — Companies that would be affected by a Biden administration vaccine-or-testing requirement for workers have largely remained on the sidelines while the Supreme Court considers whether the rule can be enforced.

The requirement, which would apply to companies with 100 or more employees, has faced numerous court challenges and was upheld last month by a three-judge panel with the U.S. Court of Appeals.

Since then, Starbucks has announced its own vaccination mandate. It said in December that all U.S. workers must be fully vaccinated by Feb. 9 or face a weekly testing requirement.

Many companies, including Lowe’s and Target, have publicly said they will abide by any federal vaccination mandate and that they are taking steps to meet it, but they have stopped short of coming out with their own requirements. General Motors said in an email Friday that it “stands firmly in support” of covid-19 vaccinations and that it was reviewing the rules “with multiple internal and external stakeholders.”

“GM continues to encourage employees to get vaccinated given the broad availability of safe and highly effective vaccines, which data consistently show is the best way to protect yourself and those around you,” the company said.

The Supreme Court is weighing the issue as companies of all stripes are grappling with labor shortages made more acute by the rapid spread of the omicron variant of the coronavirus. Business groups, including the National Federation of Independent Businesses and National Retail Federation, have slammed the requirements as onerous, saying they could hinder companies’ ability to hire workers.

Jeff Levin-Scherz, population health leader at the consulting firm Willis Towers Watson, said many companies are hesitant to make any moves because court challenges have created a lot of uncertainty. He also noted that 14 states have enacted legislation that limits employer vaccination mandates. That makes it hard for companies that operate in different states to create a uniform plan, he said.

Levin-Scherz said some companies may not need to implement mandates because nearly all of their employees are vaccinated. Others in more rural states typically have much bigger percentages of unvaccinated workers, and setting a mandate would require a bigger effort.

A survey of more than 500 U.S. companies by Willis Towers Watson conducted from Nov. 12-18 showed that more than half of all respondents either required or planned to require covid-19 vaccinations. According to the survey, 18% now require vaccinations; 32% plan to require vaccinations only if the federal rules take effect; and 7% plan to mandate them regardless of the rules’ status.

The survey also showed that very few employers with vaccination requirements — 3% — have reported a spike in resignations, although nearly 1 in 3 of those planning for mandates are very concerned that they could contribute to employees leaving their companies. On the other hand, nearly half of employers surveyed believe that vaccination mandates could help recruit and retain employees.

In August, United Airlines became the first major airline to require employees to be vaccinated or face termination. Others followed in the fall, but they withheld or dropped threats to fire anyone who didn’t get the shots.

Dallas-based Southwest Airlines said Friday that it’s awaiting a final decision on the legal challenges. In the meantime, it will not enforce the Biden administration’s Jan. 4 deadline for all federal contractors to be vaccinated. The company noted that 93% of its workers are vaccinated against covid-19 or have been granted an accommodation.

Bentonville-based Walmart, the nation’s largest retailer, required that all workers at its headquarters as well as its managers who travel within the U.S. be vaccinated against covid-19 by Oct. 4. But it excluded front-line workers, who the company has said have a lower vaccination rate than management. The retailer has not offered any details about how it’s taking steps to meet the federal mandate.

Last month, aerospace giant Boeing said it was suspending a company vaccination requirement for all U.S.based employees, citing court challenges.