The U.S. Occupational Safety and Health Administration’s Covid-19 vaccination and testing mandate for employers with 100 or more workers has been cleared by the U.S. Office of Management and Budget’s Office of Information and Regulatory Affairs. OMB review generally is the last step in the review process setting the stage for official publication, which could come in days. Business groups, including ASA, have been meeting with the Biden administration to discuss their concerns with the ETS. In its meeting with officials last month, ASA asserted, among other things, that the high turnover of staffing agency temporary employees would impose disproportionately high testing costs and proposed that the ETS exclude employees expected to work fewer than 30 days. Recent reports suggested that the final ETS will allow employers to pass testing costs on to their employees, which would address those concerns. Any rule that is issued is expected to face immediate legal challenges that would almost certainly delay implementation.

ASA has published a new issue paper that discusses the recently issued government rules that, with limited exceptions, require employees working “on or in connection with” a federal contract to be vaccinated, wear masks, and maintain physical distance. The paper covers the key provisions and effective dates, and addresses several scenarios staffing agencies likely will face and when the rules are likely to apply. The authors are federal contract experts with the Washington, DC, law firm of Miller & Chevalier, which represents ASA on tax and other complex federal regulatory matters.