Many executives and business groups said they supported the government’s goal of speeding the pace of vaccinations to keep the recent surge in U.S. cases from hampering the economy. Some said they applauded the federal government’s harder stance while others, especially smaller employers and those with mostly hourly workers, cautioned the policy could be difficult to implement.
Many employers still have questions about the timeline for implementing the new rules and are waiting for details about how employers could access Covid tests for employees and how they should monitor results.
The Business Roundtable, which counts the chief executive officers of dozens of the biggest U.S. companies as members, said it “welcomes the Biden Administration’s continued vigilance in the fight against Covid,” in a statement from Joshua Bolten, the group’s president. “Over the past several weeks many companies have decided to implement a vaccine mandate for some or all of their employees, a decision we applaud.”
A trade group representing leaders of retailers such as Target Corp. and Nike Inc. cautioned that testing capacity in the country is already strained and would need to be significantly increased to meet the demand that will result from the new requirements.
“It is essential that the administration understand that requiring large employers to mandate vaccination of all employees or produce a negative test is a colossal undertaking,” said Brian Dodge, president of the Retail Industry Leaders Association. “Testing capacity is already stressed and must be scaled immensely to meet the enormous demand that will result from these new requirements.”
While a few large employers, including United Airlines Holdings Inc. and Tyson Foods Inc., have begun mandating that all their workers get vaccinated, many companies have stopped short of such requirements. Delta Air Lines Inc. has imposed healthcare surcharges for unvaccinated employees, and others, such as Walmart Inc., have limited vaccine mandates to certain roles or employees returning to offices.
The Consumer Brands Association, whose members include General Mills Inc. and Procter & Gamble Co., said President Biden’s announcement raises questions that will require clarification. “Throughout the Covid-19 pandemic, government has often failed to implement well-intentioned policy,” the group’s president, Geoff Freeman, said in a statement. “As with other mandates, the devil is in the details. Without additional clarification for the business community, employee anxieties and questions will multiply.”
Several big employers said they were reviewing or looking to understand the new White House directive but stopped short of announcing a new policy. Some companies that do business with the federal government were also trying to understand if they would be considered federal contractors subject to stricter mandate rules.
“We are reviewing the Executive Order and are awaiting additional details, but based on what we see so far, it appears we will be impacted by these federally mandated efforts to increase vaccination rates,” American Airlines Group Inc. said in a letter from executives to employees Friday. “What we know is that the president’s actions underscore the importance of team members getting vaccinated against Covid-19—and sooner rather than later.”
Some small-business owners said they welcomed the new rules since they would apply to all companies with more than 100 workers. Others disagreed with the federal mandate.
“We will support the individual with what they want to do with their body,” whether it’s being tested or getting the vaccine, said Jack Schron, president of Jergens Inc., a manufacturer with about 450 employees in Cleveland, Chicago and Los Angeles.
“I would prefer the government stays out of it and does not throw around $14,000 penalties on businesses struggling to get through post pandemic,” he added. Mr. Schron estimates that about 60% of his workers are vaccinated and others have antibodies because they were infected by the coronavirus.
Jessica Johnson-Cope, owner of Johnson Security Bureau Inc. in New York City, said she worries about the mechanics of implementing President Biden’s directive. “Logistically, I don’t know how this will work for us,” said Ms. Johnson, whose 160 employees provide unarmed and armed security services for businesses.
Making employees come to a central location for testing each week “may create a burden for some,” Ms. Johnson said, noting that most employees work off-site and take public transportation to their jobs and some work irregular hours. She also worries about the cost of weekly testing. “That’s, in essence, another tax on the business.”