NEW YORK–Credit unions debating return-to-work policies and whether to require employees to be vaccinated may want to look to what other companies are doing while striking a balance with federal and state laws.
Companies across the country are offering employees cash, paid time off, and other financial incentives to get the shot.
“The big picture: Employers are favoring carrots over sticks in the push to get more people vaccinated. But those carrots could run afoul of federal law — if the rewards are too big,” noted the New York Times in its analysis.
Dollar General, Houston Methodist, Kroger, Petco, Target, Walmart, the state of Maryland and numerous other companies have offered various-sized cash stipends to workers who get vaccinated, reported the Times, noting the bonuses usually don't exceed $500.
‘No Clear Standard’
“But there is no clear standard for how large those rewards can be without violating federal disability, anti-discrimination, and privacy laws, as the U.S. Equal Employment Opportunity Commission continues to lag on issuing guidance,” the report added.
The New York Times noted:
- The EEOC previously said rewards involved with employer wellness programs could equal up to 30% of someone's health insurance premium without being too coercive or invasive. But a federal court invalidated that rule.
- The EEOC under the Trump administration then said companies could offer "de minimis" incentives, but the agency withdrew that guidance once the Biden administration took over.
- Earlier this year, employers begged the EEOC to "define what qualifies as a permissible incentive."
- The EEOC told Axios the update on "COVID-19 employer vaccine incentives and other issues is ongoing.”
One Interesting Example
The Times pointed to what it called “one interesting example”:
One interesting example: Anthem is offering a credit to vaccinated employees that can be used to lower their health insurance premiums (Anthem provides Anthem insurance to its employees).
Anthem originally said the credit was worth $50, but later retracted that press release and removed how much the credit was worth.
"We aren't sharing the dollar amount ... and we've designed the program so it does not 'run afoul' of EEOC rules on wellness programs and vaccinations," an Anthem spokesperson said.
Guidance Needed
"Until the EEOC issues updated guidance, it's a bit risky to offer vaccination incentives," Meghan O'Brien, an attorney at the law firm Archer who tracks the issue and recommends any vaccine incentive equal no more than one day's pay, told the Times. "Reasonable minds can vary as to what can be considered too much of a monetary incentive."