Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

U.S. federal appeals court freezes Biden's vaccine rule for companies

Published 11/06/2021, 02:04 PM
Updated 11/06/2021, 07:01 PM
© Reuters. FILE PHOTO: A woman holds a small bottle labeled with a "Coronavirus COVID-19 Vaccine" sticker and a medical syringe in front of displayed USA flag in this illustration taken, October 30, 2020. REUTERS/Dado Ruvic

By Mike Scarcella

WASHINGTON (Reuters) -A U.S. federal appeals court issued a stay Saturday freezing the Biden administration's efforts to require workers at U.S. companies with at least 100 employees be vaccinated against COVID-19 or be tested weekly, citing "grave statutory and constitutional" issues with the rule.

The ruling from the United States Court of Appeals for the Fifth Circuit comes after numerous Republican-led states filed legal challenges against the new rule, which is set to take effect on Jan 4.

In a statement, Solicitor of Labor Seema Nanda said the Labor Department was "confident in its legal authority" to issue the rule, which will be enforced by the Occupational Safety and Health Administration (OSHA).

"The Occupational Safety and Health Act explicitly gives OSHA the authority to act quickly in an emergency where the agency finds that workers are subjected to a grave danger and a new standard is necessary to protect them," she said. "We are fully prepared to defend this standard in court.”

An average of about 1,100 Americans are dying daily from COVID-19, most of them unvaccinated. COVID-19 has killed roughly 750,000 people in the United States.

The stay comes two days after the Biden administration unveiled the rule, which was immediately met with vows of legal action from Republican governors and others, who argued it overstepped the administration's legal authority.

The action on the private-sector vaccinations was taken under OSHA's emergency authority over workplace safety, officials said. The rule applies to 84.2 million workers at 1.9 million private-sector employers, according to OSHA.

The administration's various vaccine rules cover 100 million employees, about two-thirds of the U.S. workforce, according to the White House.

© Reuters. FILE PHOTO: U.S. President Joe Biden gestures as he delivers remarks on the importance of COVID-19 vaccine requirements, during a visit at a Clayco construction site, in Elk Grove Village, Illinois, U.S. October 7, 2021. REUTERS/Evelyn Hockstein/File Photo

Saturday's court order came in response to a joint petition from several businesses, advocacy groups, and the states of Texas, Louisiana, Mississippi, South Carolina and Utah. The rule is also facing separate legal challenges before other courts.

The two-page order directs the Biden administration to respond to the request for a permanent injunction against the rule by 5 p.m. Monday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.