Impact of new federal COVID-19 vaccine rule not as severe in Hawaii

A new federal rule aimed at protecting most of the nation’s private workforce from COVID-19 will have positive and negative effects, but not on as large a scale in Hawaii.

The emergency rule announced Thursday by the U.S. Department of Labor’s Occupational Safety and Health Administration applies to private employers with at least 100 workers, and will require these businesses to ensure all employees on the job either are fully vaccinated or get tested at least weekly and wear a face covering at work.

Affected employers have until Jan. 4 to begin enforcement, and OSHA said the rule will cover two-thirds of the nation’s private-sector workforce. Hawaii, however, has a far smaller share of companies with 100 employees or more.

Only one-third of private-sector workers in the state at the end of 2020 were employed by companies that would be subject to OHSA’s impending rule, or 147,074 out of 443,188 workers, according to state Department of Business, Economic Development and Tourism data.

In terms of employers affected, only 556 companies out of 45,206 in Hawaii, based on DBEDT’s count, would be subject to the rule, which requires considerable effort by employers and could affect staffing.

“Hawaii is primarily a small-business community,” said Sherry Menor-McNamara, president and CEO of the Chamber of Commerce Hawaii.

OSHA, which governs workplace safety, estimates that its mandate will save thousands of lives and prevent more than 250,000 hospitalizations due to workplace exposure to COVID-19 nationwide. The agency said many of the roughly 750,000 people killed and infected by the coronavirus in the U.S. were workers whose primary exposures occurred at their jobs.

“COVID-19 has had a devastating impact on workers, and we continue to see dangerous levels of cases,” U.S. Labor Secretary Marty Walsh said in a statement announcing the rule. “We must take action to implement this emergency temporary standard to contain the virus and protect people in the workplace against the grave danger of COVID-19. Many businesses understand the benefits of having their workers vaccinated against COVID-19, and we expect many will be pleased to see this OSHA rule go into effect.”

Hawaii has had a severe bout with COVID-19 since the delta variant emerged in July with daily cases spiking above 800, though average daily case counts are now down to about 100. Still, 41 deaths related to COVID-19 statewide were reported in the past seven days, including 13 on Thursday, according to the state Department of Health.

OSHA’s rule is similar to much of what has already been imposed for state and county workers in Hawaii.

Some business organizations that support vaccination are raising concerns about negative impacts from OSHA’s new rule, which requires employers to collect proof of employee vaccinations by Dec. 5 and provide workers paid time off to be vaccinated and for time off if needed to recover from any side effects.

The rule also allows employers to make their own mandatory vaccination policy with no testing option. If the testing option is given, employers are not required to pay for testing or face coverings.

Virginia-based construction industry organization Associated General Contractors of America said the rule encourages vaccine-reluctant workers to move to smaller companies at a time when nearly 90% of contractors are having a hard time finding workers.

“We all want to see more people vaccinated and we are all doing our part to make that happen,” Stephen Sandherr, the organization’s CEO, said in a statement. “But this rule will lead many workers to shift jobs to smaller firms while leaving larger contractors with the burden of having to comply with a complex new rule while they struggle to find workers that don’t exist to meet client demands that do.”

Menor-McNamara said this concern exists in Hawaii among a variety of industries.

“Employers are really struggling to fill positions,” she said. “There will be some hardships.”

Menor-McNamara also noted that some large employers in the state have already implemented policies similar to what OHSA is mandating, including major hospitals, the biggest banks, Hawaiian Airlines and Longs Drugs.

Hawaiian Electric began a weekly testing requirement for unvaccinated employees Sept. 1, and said 88% of its workforce is fully vaccinated.

“We believe our policy and practices align with the requirements of OSHA’s Emergency Temporary Standard, and we’re reviewing the ETS to ensure we’re in full compliance,” said company spokeswoman Shannon Tangonan.

OHSA said it will enforce its rule by initiating inspections in response to complaints. Violations could result in $14,000 fines per infraction. The agency has compliance materials available and a 28-minute video online to help businesses understand and implement the rule.

Modifying or ending the rule could be done if OSHA determines that a grave danger no longer exists for workers covered by the rule or if other new information indicates a change is needed.

FIND OUT MORE

>> To learn more about the new federal rule, go to osha.gov/coronavirus/ets2.