Vaccine Mandate: Credit Unions Not 'Federal Contractors' Simply Based On NCUSIF Coverage

Other Contractual Arrangements and Future Regulations By DOL Still Considerations

On Sept. 9, President Biden announced his COVID-19 Action Plan: Path Out of the Pandemic (Executive Order 14042). The action plan includes, among other things, requirements for employees to combat COVID-19 -- specifically those working for large (100-plus employees) private employers, working for the federal government, and working as federal contractors and subcontractors.

A question that was raised for federally insured credit unions is whether “federal contractors” in Executive Order 14042 includes all financial institutions with federal share and deposit insurance.

Neither Executive Order 14042 nor the Task Force guidance issued last week outline whether financial institutions with federal share and deposit insurance are included in the term “federal contractors,” barring other contractual obligations.

• Credit unions that contract with the federal government or are on federal facilities will have to make their own separate assessment on vaccine or testing mandates based on their contractual obligations and consultation with legal counsel.
• Credit unions may also want to consult with legal counsel to determine if there are any state mandates that apply or if employers can mandate that employees get vaccinated as a condition of employment.

CUNA and NAFCU have both issued summaries of the executive order, with both drawing the same conclusion noted above as to whether or not CUs are federal contractors for purposes of Executive Order 14042.

• CUNA Summary
• NAFCU Summary