#2021-35, November 5, 2021

Biden Administration Announces Details of Vaccine/Testing Mandate; Banks with 100+ Employees Must Comply by Jan. 4, 2022

As we reported in Special Bulletin #2021-43, the White House yesterday issued a fact sheet outlining several key details of the much-anticipated Occupational Safety and Health Administration’s (OSHA) emergency temporary standard (ETS) requiring all US companies with 100 or more employees to implement  a COVID-19 vaccine mandate for their workers.  The rule also allows those employees who choose not to be vaccinated to produce weekly negative COVID tests.  OSHA also issued a summary of the ETS that includes additional information on recordkeeping and other requirements for employers. 

According to the fact sheet, covered firms have until January 4, 2022 to ensure that all employees have received a COVID vaccination, which is defined as either two doses of the Pfizer or Moderna vaccine, or one dose of the Johnson & Johnson vaccine.  After January 4, any employees who have not received the vaccine must provide a verified negative test to their employer at least weekly.  Companies must remove any employee who receives a positive test or is diagnosed with COVID-19 from the workplace.

In addition to describing a variety of tests that comply with the standard, the ETS states that employers are not required to provide or pay for the tests.  It does note that some employers may be required to pay for testing due to other laws or collective bargaining agreements.  Under the ETS, employers must pay for time off for their employees to get vaccinated and, if needed, sick leave to recover from side effects that keep them from working.  Employers most also ensure that all unvaccinated employees always wear masks in the workplace.  The paid leave and masking provisions are effective on December 4, 2021.

MBA is reviewing the new requirements and we plan to provide additional education and guidance to member banks in the coming weeks.  To download the text of the 490-page ETS, click here.

Working Group Report says Stablecoins Should be Issued Only by Insured Depository Institutions

Earlier this week, President Biden’s Working Group on Financial Markets, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) issued a report examining the potential risks and regulatory gaps around stablecoins.  Stablecoins are typically backed by fiat currencies and carry the expectation that they can be redeemed upon request.

The report notes that there are currently no standards in place regarding stablecoin reserve assets, which could lead to vulnerabilities and pose systemic risk.  It offers several recommendations for mitigating the risks of stablecoins, including establishing a “consistent and comprehensive regulatory framework” to “increase transparency into key aspects of stablecoin arrangements and to ensure that stablecoins function in both normal times and in stressed market conditions.”  The report also calls for legislation requiring stablecoins to be issued only by insured depository institutions, and for providers of custodial wallets to be subject to “appropriate federal oversight,” including required compliance with risk management, liquidity and capital requirements.

To read more, click here.