Vaccination mandate may not apply to your Uber driver or Big Mac server

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In addition to those 80 million workers, there are another 43 million employees who work in companies that employ less than 100 people – and who are not covered by this federal mandate.

For example, most fast food restaurants are independent franchises, not company-owned establishments. So while some franchisees have multiple stores with a lot of employees, many own a single restaurant with a staff that exempts them from the rule.

About 95% of Mcdonalds (MCD) nearly 14,000 locations in the US are owned by a franchise operator, not the company itself, so there’s a very good chance that the employee who serves you a Big Mac or Quarter Pounder isn’t obliged to get a vaccine or take a Covid test to go to work.

These companies could require their franchisees to make their employees respect the same rules that apply to large companies, but that’s unlikely, said Brian Kropp, head of research at the HR practice at consulting firm Gartner.

“The war for talents”

With a record number of job openings and not enough job seekers to fill them, “the war for talent is intense right now,” Kropp said. “If McDonald’s does [require vaccinations] and Wendy’s doesn’t, employees who don’t want to be vaccinated will go out to Wendy’s. “
Many other large companies hire independent contractors, rather than employees, to interact with the public, including Uber (UBER), Elevator (ELEVATOR) and other major delivery services such as DoorDash and Instacart.
In addition to their need to hang on to workers, these companies have a bigger problem at play – imposing a vaccine mandate on drivers could complicate future legal battles over whether to be considered employees rather than independent contractors, Kropp said.

“If the mandate applied to them, it would be more likely in future legal cases for drivers to say, ‘We are treated the same as employees,” Kropp said.

Most businesses engaging with franchisees or independent contractors did not answer questions about their plans when contacted for this story. DoorDash, however, said it habit ask its delivery drivers to comply with the vaccination rules because of their status as independent contractors.

“We encourage all members of the wider DoorDash community to get vaccinated,” the company said, adding that it requires its delivery drivers to wear masks when interacting with the public.

Can vaccines be good for business?

Many large companies are happy to see the new vaccines and testing warrants because they believe that a widely vaccinated workforce could lead to a more level playing field.

“They did the math and figured out that vaccines mean less absenteeism and lower health care costs,” Kropp said.

Delta Airlines (OF) said last month that each employee hospitalized with Covid costs the company around $ 50,000.

For large employers competing for talent with other large companies, the new rules are a big plus, Kropp said.

Here's who likes Biden's vaccine mandate: the companies that need to implement it
“Walmart (WMT) no longer have to worry about losing workers to Target (TGT),” he said.

Small employers, however, have not been able to take on mandates on their employees, as they often compete for workers with companies of similar size.

A survey of 533 small businesses conducted by the National Federation of Independent Businesses, a trade group that primarily represents businesses with fewer than 100 employees, found that only 3% had a vaccine mandate and 14% were “considering” one. . The investigation was conducted during the first six days of September, just before the announcement of the federal rule.

“Their ability to retain and recruit workers is a major factor in whether they impose a mandate for vaccination,” said Holly Wade, Executive Director of the NFIB Research Center.

At the same time, small businesses must worry about absenteeism if Covid cases start to spread through their workforce on top of health expenses for around a third of small employers who offer health coverage.

Although a major airline like Delta can afford a $ 50,000 hospital bill when an employee is hospitalized, small businesses are hard pressed. to cover these costs.

“Any significant medical event for any of their employees can increase their premiums astronomically,” Wade said. “We hear about this from small business owners all the time.”

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