US Supreme Court Halts Federal Vaccination Mandate for Employers, but Permits CMS Rule to Take Effect

Today, January 13, 2022 the U.S. Supreme Court issued two significant rulings regarding two of the federal COVID-19 vaccine mandates. First, the Supreme Court stayed the Federal Occupational Safety and Health Administration’s (OSHA) Emergency Temporary Standard (ETS) on COVID-19 for employers with 100 or more employees. This means the ETS is no longer in effect at this time, and employers are not under an obligation to comply with its requirements.

Second, the Court granted the federal government’s request that the preliminary injunctions blocking the Healthcare Centers for Medicare & Medicaid Services (CMS) Interim Final Rule (the “CMS Rule”) in certain states be lifted. This means CMS is allowed to move forward with its rule for healthcare workers nationwide, and that covered employers must comply with the CMS Rule.

The following is an update on the impact of the Supreme Court’s rulings for each rule.

OSHA ETS

As previously reported, the Supreme Court held an emergency hearing on January 7, 2022 regarding a judicial stay of OSHA’s ETS on COVID-19 for employers with 100 or more employees. Today, the Supreme Court ruled in favor of petitioners granting the judicial stay by a 6 –3 vote, with Justices Roberts, Thomas, Alito, Gorsuch, Kavanaugh, and Barrett voting in favor and Justices Breyer, Sotomayor, and Kagan dissenting.[1]

As a result, enforcement of OSHA’s ETS has been halted pending the disposition of the case in the United States Court of Appeals for the Sixth Circuit.

According to the Supreme Court’s ruling, the petitioners “are likely to prevail” on the merits of their case in front of the Sixth Circuit because COVID-19 impacts all areas of life and not just the workplace. The Supreme Court stated that “[p]ermitting OSHA to regulate the hazards of daily life – simply because most Americans have jobs and face those same risks while on the clock – would significantly expand OSHA’s regulatory authority without clear congressional authorization.”

While the Supreme Court acknowledged that OSHA has some authority to regulate occupation-specific risks related to COVID-19, it does not have such authority when OSHA takes an “indiscriminate approach” and “fails to account for” the crucial distinction between occupational risk and risk more generally.

The Supreme Court’s ruling today means that the ETS is stayed nationwide and that the vaccine and testing requirements for employers with 100 or more employees are blocked from taking effect. While this ruling is not the final decision of the case, such rulings are an indication of how the Supreme Court may ultimately decide should the case appear again in front of the Court. We will continue to monitor whether OSHA continues its efforts to defend the ETS after today’s ruling.

Healthcare Employers: CMS Interim Final Rule

As previously reported, the Supreme Court also held an emergency hearing on January 7, 2022 regarding the U.S. government’s request to issue a stay of the preliminary injunctions that are currently preventing the CMS Rule from taking effect in 25 states.

Today, the Supreme Court ruled in favor of the U.S. government, granting the judicial stay by a 5 – 4 vote, with Justices Roberts, Breyer, Sotomayor, Kagan, and Kavanaugh voting in favor and Justices Thomas, Alito, Gorsuch, and Barrett dissenting.[2]

According to the Supreme Court, the “challenges posed by a global pandemic do not allow a federal agency to exercise power that Congress has not conferred upon it.” However, “[a]t the same time, such unprecedented circumstances provide no grounds for limiting the exercise of authorities [an] agency has long been recognized to have.”

Here, the Supreme Court found that the CMS Rule fell within the authority that Congress had conferred on the Secretary of the Health and Human Services agency. Specifically, the Court stated that Congress has authorized the Secretary of Health and Human Services to “impose conditions on the receipt of Medicaid and Medicare funds” which are “necessary in the interest of the health and safety of individuals who are furnished services.” The Court noted that “COVID-19 is a highly contagious, dangerous, and – especially for Medicare and Medicaid patients – deadly disease.”

The Supreme Court’s ruling today means that the injunctions by the lower federal courts are lifted and the CMS Rule is in effect nationwide. We will have to wait and see if CMS issues any guidance for its compliance dates following the Court’s ruling.

Please contact your Varnum attorney, or any member of the firm’s labor and employment practice team, with questions about how this change will affect your workforce.


[1] National Federation of Independent Business, et al., v. Dep’t of Labor and OSHA, et al. and Ohio, et al. v. Dep’t of Labor and OSHA, et al.
[2] Joseph R. Biden, Jr., President of the United States, et al. v. Missouri, et al. and Xavier Becerra, Secretary of Health and Human Services, et al., v. Louisiana, et al.

Federal Vaccine/Testing Mandates Take Effect While Supreme Court Stays Silent

UPDATE: US Supreme Court Halts Federal Vaccination Mandate for Employers, but Permits CMS Rule to Take Effect

Today, January 10, 2022, the Federal Occupational Safety and Health Administration’s (OSHA) Emergency Temporary Standard (ETS) on COVID-19 for employers with 100 or more employees takes effect. Although many had anticipated that the U.S. Supreme Court might rule on the legality of the OSHA ETS prior to today, the Court’s failure to do so means that covered employers should be prepared to comply. A full discussion of the ETS’s requirements is available in our previous advisory: Here We Go Again: Sixth Circuit Lifts Stay of OSHA COVID-19 ETS for Employers With 100 or More Employees. Additional guidance from MIOSHA late last week suggests that covered employers in Michigan may have an additional two-week period, until January 24, 2022, to come into full compliance.

Background

On Friday, January 7, 2022 the Supreme Court heard expedited oral arguments regarding judicial stays facing two federal vaccine mandates concerning COVID-19: OSHA’s ETS on COVID-19 for employers with 100 or more employees and the Healthcare Centers for Medicare & Medicaid Services (CMS) Interim Final Rule (the “CMS Rule”) covering certain health care providers.

While many had anticipated some sort of preliminary ruling or even a stay of one or both mandates by today, as of the time this advisory was published there had been no ruling on either issue from the Supreme Court.

OSHA ETS and Recent MIOSHA Action

As previously reported, the U.S. Court of Appeals for the Sixth Circuit recently lifted a judicial stay that had previously prevented the implementation of OSHA’s ETS for employers with 100 or more employees. OSHA responded to this ruling by issuing new compliance dates for the ETS: Covered employers were given until today, January 10, 2022, to comply with all provisions, except for the testing requirement for unvaccinated employees. The testing requirement was rescheduled to take effect on February 9, 2022.

Several petitioners filed immediate emergency appeals to the Supreme Court asking the Court to reinstitute the judicial stay, pending a full hearing and decision on the matter. The Supreme Court granted the request and held an emergency hearing this past Friday, January 7, 2022 regarding a judicial stay of the ETS.

However, as of today, January 10, the Supreme Court has not yet issued a ruling. That means the federal ETS is in effect and will proceed according to the new compliance dates announced by OSHA, pending the Supreme Court’s disposition of the case. You can find a full discussion of those requirements in our previous advisory.

In the meantime, late last week the Michigan Occupational Safety & Health Administration (MIOSHA) issued a statement indicating that OSHA was not requiring states with state plans like Michigan to adopt the ETS or an equivalent until January 24, 2022. MIOSHA stated it is closely monitoring the status of legal challenges to the OSHA ETS while preparing for its deadline to adopt. You can read MIOSHA’s full announcement on the michigan.gov website: Labor and Economic Opportunity – COVID-19 Workplace Safety. This suggests that in Michigan at least, MIOSHA may not start enforcing the requirements of the OSHA ETS until January 24. Due to the lack of clarity, however, employers are urged to come into compliance with the OSHA ETS as soon as possible.

Healthcare Employers: CMS Interim Final Rule

As previously reported, on November 30, 2021 a federal judge in Louisiana issued a preliminary injunction to block the start of the CMS Rule, which applies to certain healthcare entities. The injunction from the Louisiana federal district court applied nationwide except for the ten states that were already under a preliminary injunction order issued on November 29 in Missouri.

On December 15, 2021 a three-judge panel for the U.S. Court of Appeals for the Fifth Circuit ruled that the lower Louisiana federal court only had the authority to block the mandate in the 14 states that had actually filed suit. The following day, a federal court in Texas granted a preliminary injunction to enjoin CMS from enforcing is vaccine mandate in Texas. Thus, the CMS mandate has been blocked from enforcement in 25 states but remains in effect in the remaining 25 states, including Michigan. On December 28, 2021, the CMS updated its FAQs indicating it is moving forward with implementation of the CMS in the 25 states not subject to the Stay and modified its compliance timeline to January 27, 2022 for phase one and February 28, 2022 for phase two. See External FAQ IFC-6 Guidance Memo 12 28 21 226 (508 Compliant).

The U.S. government applied to the Supreme Court asking for a nationwide stay of the injunctions issued by the lower federal courts, pending full review by the lower Circuit courts. The Supreme Court granted the request and also held an emergency hearing on the CMS Rule this past Friday, January 7, 2022.

Again, however, we have heard nothing further from the Supreme Court. Thus, the CMS Rule remains blocked in 25 states as of today, but continues on in the other 25 states.

Please contact your Varnum attorney, or any member of the firm’s labor and employment practice team, with questions about how these legal developments will affect your workforce and advice for bringing your organization into compliance with these mandates.

Here We Go Again: Sixth Circuit Lifts Stay of OSHA COVID-19 ETS for Employers With 100 or More Employees

UPDATE: US Supreme Court Halts Federal Vaccination Mandate for Employers, but Permits CMS Rule to Take Effect

On Friday, December 17, 2021, a three-judge panel of the U.S. Court of Appeals for the Sixth Circuit lifted the Fifth Circuit’s stay that had prevented the Occupational Safety and Health Administration’s (OSHA) Emergency Temporary Standard (ETS) on COVID-19 from being implemented for employers with 100 or more employees. The ETS is now able to move forward absent issuance of a stay from the U.S. Supreme Court. OSHA has issued new compliance dates for employers.

The Sixth Circuit’s ruling was issued by a 2-1 vote, with Judges Julia Gibbons and Jane Stranch ruling in favor of OSHA’s and Judge Joan Larsen dissenting.

Several petitioners in the case have already filed emergency appeals to the U.S. Supreme Court with requests for the stay to be reinstituted, pending a hearing on the matter. In such emergency appeals, the requests go directly to the justice assigned to the applicable Circuit, which in this instance will be Justice Brett Kavanaugh. The assigned justice has the discretion to decide the request on his or her own or submit the request to the full court to consider. At this time, it is unclear when this decision will be made or if the Supreme Court will hear the case.

The key points from the ETS along with the new compliance dates are summarized below:

Compliance

  • Deadlines for Compliance. The new compliance dates according to OSHA are:
    • January 10, 2022: OSHA will not issue citations for noncompliance with any of the requirements of the ETS before January 10.
    • February 9, 2022: For testing requirements, OSHA will not issue citations for compliance with testing requirements, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard.
  • Covered Employers. The ETS covers all employers with 100 or more employees. Part-time employees and remote workers are included in the number of employees for the purpose of determining coverage, but employees of staffing agencies need not be included. Only employees at U.S. locations are counted. Two or more related entities may be regarded as one employer – and thus their employees must be counted together – if they handle safety matters as one company.
  • Time Off for Vaccination. Covered employers must support vaccination by providing reasonable time, including up to four hours of paid time, to receive each vaccination dose. Employers must provide reasonable time off and paid sick leave to recover from side effects following each dose.
  • Masking. All covered employers must ensure that unvaccinated employees wear a face mask while in the workplace.
  • Vaccination or Weekly Testing. All covered employers must implement and enforce a policy that mandates their employees receive the necessary shots to be fully vaccinated – either two doses of Pfizer or Moderna, or one dose of Johnson & Johnson – unless the employer instead implements and enforces a policy mandating any unvaccinated employee to produce a negative test weekly and wear a mask while in the workplace. All covered employers must ensure that any employee still unvaccinated after the specified date (now no later than February 9, 2022, provided the employer is making good-faith efforts to come into compliance) begins producing a verified negative test to their employer on at least a weekly basis. COVID-19 tests that are both self-administered and self-read do not satisfy this requirement.
  • Acceptable Proof of Vaccination Status. Employers must determine the vaccination status of each employee. Acceptable proof of vaccination status is a record of immunization from a health care provider or pharmacy, a copy of the COVID-19 Vaccination Record Card, a copy of medical records documenting the vaccination, or another copy of immunization records from a public health system. A signed and dated employee attestation is acceptable in instances when an employee is unable to produce proof of vaccination. These records must be preserved while the ETS is in effect and are subject to audit by OSHA.

Exemptions / Variations

  • Remote Workers. Employees who telework or do not report to a workplace where other people work are exempt from compliance with the vaccination and testing requirements. However, they still must be counted for purposes of determining whether the 100-employee threshold has been met.
  • Outdoor Workers. Employees who work “exclusively outdoors” are exempt from the ETS vaccination and testing requirements. An employee works exclusively outdoors if he or she works outdoors for the duration of every workday except for de minimis use of indoor spaces where others are present.
  • Part-time Workers. The ETS applies to part-time workers as well as full time workers, although the weekly testing requirements are adjusted if an unvaccinated part-time employee does not enter the office every week. If away from the workplace for a week or longer, the employee must produce a verified negative test within seven days before returning to the workplace.
  • Medical or Religious Exemptions. The employer vaccination policy required by the ETS should provide for those legally entitled to reasonable accommodation for disability or religious reasons. Such exempt employees must participate in the weekly COVID-19 testing requirement and wear face coverings.

Employees who have previously contracted COVID-19 are not exempt from the vaccination, testing, or masking requirements.

For states with state-administered OSHA plans, such as Michigan, the ETS required the state OSHA agency to adopt the federal ETS standard or measures at least as protective as the federal ETS within 30 days of the ETS’s issuance. At this point, Michigan has not yet issued its plan, but this would be expected to occur within the next 30 days. It remains to be seen whether MIOSHA, Michigan’s own worker safety agency, will modify the ETS and trigger additional requirements for Michigan employers.

Please contact your Varnum attorney or any member of the firm’s labor and employment practice team with questions about how the ETS will affect your workforce. We are continuing to monitor for further developments.

Federal Contractor Vaccine Mandate Stayed Nationwide

As previously reported, on November 30, a federal judge in Kentucky halted the implementation of the vaccine mandate for federal contractors and subcontractors in Kentucky, Ohio, and Tennessee. Now, a federal judge in Georgia has issued a nationwide injunction blocking the vaccine mandate for federal contractors and subcontractors. Unlike the limited injunction issued in Kentucky, the Order issued in Georgia on December 7, 2021, blocks the vaccine mandate countrywide.

The vaccine mandate for federal contractors and subcontractors had most recently required full vaccination by January 18. With this December 7 Order, the January 18 deadline has been put on hold nationwide. The Order also serves as the final federal-level effort to block all of President Biden’s vaccine mandates covering employees other than direct employees of the federal government. The OSHA Emergency Temporary Standard (ETS) and CMS Interim Final Rule have already been enjoined nationwide.

What does this mean for employers covered by the federal contractor mandate? Covered employers can currently halt their efforts to comply with the implementation of the rule but should be ready to proceed with the requirements of the rule should the injunction be reversed.

Please contact your Varnum attorney, or any member of the firm’s labor and employment practice team, with questions about how this change will affect your workforce.

Throughout COVID-19, Varnum’s Labor and Employment Team has helped employers across the country navigate emergent laws and regulations that impact their workforce and operations, including with respect to vaccination mandates. 

On November 9, 2021, Varnum Labor and Employment attorneys presented a one-hour webinar on the most pressing concerns and questions regarding OSHA’s COVID-19 vaccine and testing rules. To request a recording of the webinar and gain access to frequently asked questions and other resources, please click here.

We stand ready to assist you with this new rule and related workplace adjustments. If you have immediate questions, please contact your Varnum attorney.

Courts Halt Federal Vaccination Mandates Amid Legal Challenges

Vaccine card

The Biden Administration’s various vaccine and/or testing mandates for employers with over 100 employees, certain healthcare providers, and federal contractors, continue to face significant legal challenges. Following is an update on the status of those legal challenges.

OSHA ETS

As previously reported, the federal Sixth Circuit Court of Appeals based in Cincinnati has been chosen to preside over litigation concerning OSHA’s Emergency Temporary Standard (ETS) requiring companies with at least 100 employees to mandate COVID-19 vaccinations or submit to weekly testing and mask requirements. The ETS imposed two compliance deadlines: proof of vaccination and mask-wearing for unvaccinated employees beginning December 6, and the additional requirement of weekly testing for unvaccinated employees beginning January 4. Prior to the case being transferred to the Sixth Circuit, the Fifth Circuit Court of Appeals issued a nationwide stay of the ETS, which currently remains in effect.

OSHA has requested the Sixth Circuit to dissolve or modify the stay. The Sixth Circuit has released a timeline for parties to file briefs, responses and replies with a final filing date of December 10. This means that the Sixth Circuit is unlikely to take further action until approximately mid-December. In the meantime, OSHA has made clear that it will stand down on its efforts to implement the ETS pending further litigation.

The Sixth Circuit’s decision may not be an “all or nothing” outcome. In its Emergency Motion to dissolve the stay, OSHA requested that the Sixth Circuit modify the stay to allow certain components of the ETS to go into effect if the stay is not lifted in its entirety. Specifically, OSHA requested that the masking-and-testing requirement remain in effect pending the litigation of the stay and that the stay be limited to allow employers the option to adopt COVID-19 policies, notwithstanding any state or local laws that may restrict such policies.

For now, employers who would otherwise be covered by the ETS should still remain prepared to comply in the event the stay is lifted. However, the ETS is currently stayed until at least December 10 and, unless the stay is lifted, either as a result of OSHA’s request to dissolve or a later decision of the Court, the ETS will not take effect. Employers should also continue to monitor state and local laws, which could impose additional requirements.

Healthcare Employers: CMS Interim Final Rule

On Tuesday, November 30, a federal judge in Louisiana issued a preliminary injunction to block the start of the CMS Interim Final Rule (the “CMS Rule”). The injunction applies nationwide except for ten states that are already under a preliminary injunction order issued on November 29 in Missouri.[1]

The CMS Rule was released on November 5, and established conditions of participation on various Medicare and Medicaid certified providers and suppliers. Generally, the rule mandated that covered staff must be fully vaccinated by January 4. The CMS Rule also set a deadline for accommodation requests and receipt of the first vaccine dose by December 6. As of now, these conditions are halted nationwide.

What does this mean for healthcare employers? Healthcare employers should continue to monitor state and local laws that will impact existing employer vaccine mandates. In the meantime, covered employers who do not wish to proceed with a vaccine mandate may pause their efforts to comply with the CMS Rule. However, these preliminary injunctions are likely to be appealed, and thus healthcare employers should be ready to proceed with the requirements of the rule should the controlling injunction be reversed.

Federal Contractors and Subcontractors Vaccine Mandate

Separately, on Tuesday, November 30, a federal judge in Kentucky issued a preliminary injunction blocking the implementation of the vaccine mandate for federal government contractors and subcontractors. The ruling is limited to the three states, Kentucky, Ohio, and Tennessee that challenged the Federal Contractor and Subcontractor mandate. It is the first ruling against the contractor mandate but may be an indicator of additional challenges in light of the success of this first challenge.

The original deadline for covered employees to be fully vaccinated was January 4, 2022, but it had already been extended to January 18. At the moment, employers covered by the federal contractor mandate in Kentucky, Ohio, and Tennessee can halt their efforts to comply with the rule. However, like employers covered by the CMS rule, these employers should be ready to proceed with the requirements of the rule should the injunction be reversed. Federal contractors and subcontractors in other states, including Michigan, should continue to monitor for any additional court rulings, but should otherwise be ready to comply with the January 18 deadline and the other provisions of this mandate, barring any additional legal developments.

Please contact your Varnum attorney, or any member of the firm’s labor and employment practice team, with questions about how these changes will affect your workforce.


[1] These states include Alaska, Arkansas, Iowa, Kansas, Missouri, New Hampshire, Nebraska, Wyoming, North Dakota, and South Dakota.

Throughout COVID-19, Varnum’s Labor and Employment Team has helped employers across the country navigate emergent laws and regulations that impact their workforce and operations, including with respect to vaccination mandates. 

On November 9, 2021, Varnum Labor and Employment attorneys presented a one-hour webinar on the most pressing concerns and questions regarding OSHA’s COVID-19 vaccine and testing rules. To request a recording of the webinar and gain access to frequently asked questions and other resources, please click here.

We stand ready to assist you with this new rule and related workplace adjustments. If you have immediate questions, please contact your Varnum attorney.

Sixth Circuit Selected to Hear Consolidated ETS Legal Challenges

On November 16, the United States Panel on Multi-District Litigation conducted a lottery among the federal court circuits in which lawsuits are pending over OSHA’s ETS. Under the rules applicable to the ETS, all legal challenges to the ETS are to be consolidated and transferred to one Circuit Court of Appeals for hearing and decision. The lottery resulted in the selection of the Sixth Circuit Court of Appeals to receive and hear these cases. We will continue to monitor for further developments.    

Throughout COVID-19, Varnum’s Labor and Employment Team has helped employers across the country navigate emergent laws and regulations that impact their workforce and operations, including with respect to vaccination mandates. 

On November 9, 2021, Varnum Labor and Employment attorneys presented a one-hour webinar on the most pressing concerns and questions regarding OSHA’s COVID-19 vaccine and testing rules. To request a recording of the webinar and gain access to frequently asked questions and other resources, please click here.

We stand ready to assist you with this new rule and related workplace adjustments. If you have immediate questions, please contact your Varnum attorney.

OSHA Temporarily Suspends ETS Implementation Per Fifth Circuit Injunction

Breaking News: Sixth Circuit Selected to Hear Consolidated ETS Legal Challenges

The status of OSHA’s Emergency Temporary Standard (“ETS”) mandating COVID-19 vaccinations or testing of employees for those employers with 100 or more employees remains fluid and uncertain. On November 12, 2021, the U.S. Court of Appeals for the Fifth Circuit ordered a continuation of the Fifth Circuit’s stay of the ETS, directing OSHA to take “no steps to implement or enforce the Mandate until further Court Order.” The Department of Labor has acknowledged the Fifth Circuit’s Order and posted the following message on its webpage: “OSHA has suspended its activities related to the implementation and enforcement of the ETS pending future development in the litigation.”

What does this mean? The future of the ETS remains uncertain in light of litigation in multiple forums. This week, a determination will be made regarding which federal Court of Appeals will be tasked with determining the legality and constitutionality of the ETS. Hopefully soon we will receive an indication of whether the assigned Court will take immediate action to reconsider the Fifth Circuit’s stay that is currently in place, or keep it in effect pending determination of the legal challenges. In the meantime, employers may wish to continue with steps to ensure they will be ready to comply in the event the rule is upheld or the Fifth Circuit’s stay is lifted.   

Throughout COVID-19, Varnum’s Labor and Employment Team has helped employers across the country navigate emergent laws and regulations that impact their workforce and operations, including with respect to vaccination mandates. 

On November 9, 2021, Varnum Labor and Employment attorneys presented a one-hour webinar on the most pressing concerns and questions regarding OSHA’s COVID-19 vaccine and testing rules. To request a recording of the webinar and gain access to frequently asked questions and other resources, please click here.

We stand ready to assist you with this new rule and related workplace adjustments. If you have immediate questions, please contact your Varnum attorney.