U.S. employers are largely encouraging rather than mandating their employees to receive COVID-19 vaccines, according to two recent surveys. And a growing number of companies have dangled legally untested bargains, from extra compensation to paid time off, to entice employees to get the vaccine.
Target Corporation (TGT) on Wednesday became one of the latest major employers to offer extra compensation to its frontline and essential hourly workers. The company is paying workers up to four extra hours, and picking up the tab for round-trip Lyft (LYFT) rides to and from vaccination appointments.
McDonalds made a similar announcement in January, offering its U.S. employees four hours of bonus pay. Grocery chains Trader Joe’s and Aldi, and coffee chain Starbucks (SBUX), incentivised workers with two hours of extra pay. Grocery platform Instacart and Kroger (KR) offered more modest stipends of $25 and $100, respectively.
Companies should be wary about the incentives they offer for workers who get vaccines, as these rewards are largely untested against federal health privacy law, experts say. However, it’s unclear exactly how generous these employer perks can be before they could become legally problematic.
More clarity could come in March, when the Equal Employment Opportunity Commission (EEOC) will decide whether it’s adopting proposed rules that could restrict employers that up the ante on vaccine incentives.
The uncertainty arises because the Department of Labor (DOL) has never issued specific guidance on how employer vaccination programs and vaccine incentives fit into the Employee Retirement Income Security Act (ERISA), which sets minimum standards for company health plans.
The gray area leaves questions about whether vaccine incentives trigger employee protections of the Americans with Disabilities Act (ADA) and compliance requirements of the Health Insurance Portability and Accountability Act (HIPAA). Both set limitations on incentives offered through employer wellness programs. ...
