Despite Guidance, Questions Remain for Credit Unions on President's Vaccine Mandate

The Safer Federal Workforce Task Force released last Friday the Guidance many have been anticipating to implement President Biden’s Executive Order 14042: Ensuring Adequate COVID Safety Protocols for Federal Contractors (“Order”), issued Sept. 9, 2021. Rules regarding mandates for employers with more than 100 employees are still forthcoming.

The 14-page document includes definitions, a description of the specific requirements contractors must implement and by when, plus a list of 21 FAQs.

Importantly for credit unions: the Guidance does not address whether or not a federally insured depository is declared a federal contractor for purposes of the vaccination mandate.

Many of you have asked whether credit unions will be deemed Federal contractors for the purposes of the order, notes League President/CEO Carrie Hunt.

Hunt also notes the NCUA has always taken the position that share insurance does not grant federal contractor status to credit unions without a separate contractual provision/obligation, but the DOL has used share insurance to require compliance with government contractor affirmative action rules.

"Whether the DOL tries to sweep a large group into federal contractor status remains to be seen," said Hunt, "and there will certainly be many legal questions to resolve."

Also of note: Though the text of the Sept. 9 Order did not explicitly state it, the Guidance makes clear contractors will be required to mandate vaccinations of covered employees, except in limited circumstances where a legally entitled accommodation is appropriate. The guidance states that covered employees must be fully vaccinated no later than Dec. 8, 2021.

Your League remains engaged on this issue and will pass on additional information once available.

View the Guidance