Pros and cons of offering COVID-19 vaccine incentives

With COVID-19’s negative impact on employee staffing levels and companies’ ability to operate, many employers have considered offering bonuses or other incentives to those who voluntarily receive the vaccine. But are the incentives legal? Let’s take a closer look.

How we got here

Heading into 2021, employers’ optimism for an anticipated “return to normal” in the workplace was rising quickly thanks to the increasing availability of the COVID-19 vaccines. The positive outlook was soon tempered, however, as employers found many employees hesitant to get the shots even when they’re offered at no cost.

As you decide whether to offer incentives for getting the vaccine, there are federal legal hurdles to consider, and other questions will arise as well.

Types of incentives

Some of the country’s largest employers, from hospitals to manufacturing to retail, are seeking to encourage workers to receive the COVID-19 vaccine by:

• Offering bonuses, cash payments, paid time off (PTO), gift cards, or additional hours of pay;
• Setting up drawings for prizes in which employees’ names are included when they receive the first dose of the vaccine and again for a second drawing upon getting the final shot; and
• Providing bonuses to employees in recognition of their efforts during the pandemic, but also making the prizes contingent upon getting the vaccine.

Legal considerations